Short Sale Reported As Foreclosure

Dear Shari,

My wife called me while i was traveling to work and mentioned a story you showed on Fox 29 News this morning regarding mortgage companies posting foreclosures to the credit bureaus when in fact, the home ownership ended in a short sale. GMAC did this exact thing to me and it just so happens that I entered a dispute through Experian just yesterday.

My credit scores have been good despite the "foreclosure"; however, I have been trying to obtain an SBA loan and this black mark on my credit has caused me to get 18 loan denials. I am very frustrated because I even have all of the paperwork showing not only the short sale, but also the payment of a promissory note that was required from me in order for them to accept the short sale offer on the home.

I am hoping that Ally will respond and change the reading on my credit report within the 45 days that they are required. I did not get to see the story, but being a CFP, my bet is that they got money from the government for each "foreclosure" and probably did this to a lot of people. If you would like any more information, feel free to contact me back.

Dear Sean,

Boy I’m sorry to hear this happened to you.  I can only imagine how frustrating it must be to have done the “right” thing by short selling only to find you’re stung with a foreclosure “charge off” on your credit report.  Under the new laws the credit agencies are required to take appropriate action and revolve without delay.   As we mentioned in the segment, you can also file a complaint at   And I am happy to connect you with a professional if you are not able to resolve this yourself.  In the mean time,  I will pass your email on to the station in case they want to do a follow up package.  Thanks so much for sharing your story!


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