Pam Marron Home Lending

Washington, D.C.: Problems Surrounding Underwater Homeowners and Short Sellers

On April 8-10, 2013, a white paper entitled “Problems Surrounding Underwater Homeowners and Short Sellers” listing problems and solutions for multiple challenges surrounding 16 million underwater homeowners and 2.2 million past short sellers trying to re-enter the housing market was taken to Washington, D.C. by Pam Marron, a 28 year loan officer from Tampa Bay, Florida and Terry Clemans, Executive Director of the National Consumer Reporting Association. The two visited offices of congressmen and representatives in hardest hit states of Florida, California, Arizona and Maryland and also spoke with members of the House Finance Committee, thanks to U.S. Congressman Gus Bilirakis (R-Fl). They also met with Senator Bill Nelson’s (D-Fl) housing counsel, credit and mortgage directors at the Consumer Financial Protection Bureau, U.S. Treasury Home Preservation officers with a Fannie Mae director and members of the PEW Institute.

The good news is that everyone met had heard of some of the plights and want to work on solutions.

However, one of the common comments made was, “we have heard about these problems in the press but don’t get many calls about it at our offices.”

Pam is now asking past short sellers and currently underwater homeowners who are having the problems to outline detail in writing and:

  1. contact your congressmen, senators and representatives NOW, briefly summarize your particular problem and tell them and then send your letter documenting that you are having these problems.
  2. send your letter to

List of Common Problems

Past short sellers eligible to re-enter the housing market:

  • Turned down for new mortgage when eligible after a short sale because lender underwriting system is coding your past short sale as a foreclosure, and unwillingness or lack of understanding by your lender on how to correct
  • Cannot get credit agencies, most commonly Experian, to downgrade foreclosure code even though you have provided proof of past short sale (commonly shows up as an M-8 or M-9 in MOP or “8” in payment history line)
  • Cannot find a lender who will “manually approve your conventional loan” even though the Fannie Mae DU Clarification dated  3/12/13 gives permission to do with acceptable documentation

Currently underwater, need to proceed with a short sale and:

  • Have a FNMA, FHLMC, FHA or VA mortgage and are being told being told by your lender that in order to obtain a short sale, you must go delinquent (also, notify the CFPB and Pam)
  • Are being turned down for short sale with a hardship that was not submitted (list of hardships for GSE (Fannie Mae and Freddie Mac) and non-GSE (portfolio conventional, FHA, VA , USDA) listed on page 18 of paper linked on bottom)
  • Can’t find a real estate agent that wants to help you proceed with a short sale while keeping credit current. Are you an agent who wants to help these homeowners get through the short sale while staying current? Please email
  • Want to be current on your mortgage through the process but don’t recall being qualified for the short sale while being current.
  • Have a disaster home such as a sinkhole or Chinese drywall and the lender wants you to pay for repairs before they will approve the short sale

Home is currently underwater but you want to stay and:

  • your lender is turning you down for HARP or a streamline refi. even though you qualify
  • You have a portfolio conventional loan and THERE IS NO REFINANCE PROGRAM AVAILABLE.
  • You are a widow, widower or ex-spouse and the lender will not talk to you because you are not on the note, even though you are on the will, title, mortgage and/or divorce decree, until you go delinquent…. which then disqualifies you for refinance help desired.
  • You were deeded the property in a divorce, are not on the note and cannot get a HARP refinance unless your ex-spouse joins on the HARP mortgage.
    • Because the ex-spouse cannot/will not join for a HARP refinance, you must short sell, go delinquent per lender requirement, which will damage your  ex-spouse’s credit.

Problems Surrounding Underwater Homeowners and Short Sellers

This paper details challenges and solutions being worked on now for past short sellers and currently underwater homeowners. Email Pam Marron at

  1. Along with your senators, congressmen and representatives
  2. If you are a credit agency wanting to help your customers
  3. If you are a loan officer, mortgage company or realtor that desires to help past short sellers correct their credit and current short sellers exit their home with credit intact

Supporting Documents:

If you have additional problems or need direction to agencies or industry professionals in your area who can help, please email Pam at

We must pay attention. Our economy depends on it.