The National Real Estate Post & The Credit Guy TV team up to help fix a DU error.
As far back as I can remember, Fannie Mae’s DU system has been incorrectly reading one of the repositories codes for a “settled for less than full balance” account as a FORECLOSURE! There by unfairly punishing former home owners who made attempts to sell their home at a loss, rather than just walk away and go into foreclosure. The Repositories were reporting on the settled account correctly as a short sale. What was happening is that DU would upgrade the coding from an 06 (short sale) to a 09 (FORECLOSURE). Unfortunately, many would be home buyers were keep out of the home market because of this technology error. Starting November 16th lenders will now have the ability to correct this error manually and provide documentation of the settlement. This is a big win for millions of US Americans (Ms south Carolina reference) that they will now be able to re enter the real estate market. to see the DU update click this link https://www.fanniemae.com/content/release_notes/du-do-release-notes-11162013.pdf