Stop “Short Sales” From Damaging Credit

SUMMARY

This idea brief proposes to help homeowners by temporarily barring credit agencies from penalizing the credit ratings of people who “short sell” their homes.

The number of homeowners who owe more on their mortgage than their house is worth has increased dramatically in the recent economic downturn. If these homeowners need to sell their home, a short sale is sometimes the best and most responsible option. But a short sale can have a devastating effect on a homeowner’s credit score. This brief proposes to temporarily ban penalties on a homeowner’s credit score for having to short sell their house.

To read this Report, open the attached PDF