Have a client that just purchased a home, short sale. Her name is showing up as in default now?

Our client bought a home in Short Sale. There is some kind of clitch in the system that is now showing the client in default on the home she just purchased. We have confirmed with her current mortgage that she of course is not in default. But she is still worried of the data given out right now. She is receiving a ton of mailings now because of it. Any suggestions on who to contact to rectify the glitch??

Not a glitch. We clearly state that we show NOD’s for 120 days from the day they are filed (with no regard to sales activity), and we ALSO show the “Current Owner”… and clearly that does not necessarily mean that the current owner is in foreclosure. The reason we do this is that a sale does not always cancel a foreclosure… I’ve bought a number of foreclosures after they’ve been sold because the loan wasn’t actually paid off. I’m sure that’s not the case here, but that’s why.
If you email our support team (support@foreclosureradar.com) with the address, and the date escrow closed and we’d be happy to manually research this and set the record to historical if the foreclosure was cancelled. Setting it to historical will remove it from our default search results. Note that a few months ago we did this for an owner and found out the sale was still scheduled… our research helped them avoid a real problem as a foreclosure sale can OVERTURN a closed escrow (though their title insurance would have covered it).
Anyone buying a preforeclosure should be aware that the public record notices filed before they purchased will likely result in some disruption for 3-6 months after they close escrow. I’d actually recommend Realtors disclose this on short sale transactions.

I too had the same thing happen to my Buyer. Before finding this post, I sent info on COE, etc.
Everyone should heed your last paragraph of your Comments section. I will be making such a disclosure part of my package to my buyers starting immediately.

One more thing… we’ve had two homeowners contact us and tell us that they were contacted a month after close of escrow to be told that the lender had rejected the payoff check and that the lender would be moving forward with foreclosure. The homeowners in these cases should be protected by title insurance, but understand cases like this make us reluctant to set any foreclosure to inactive just because there was a closed escrow. Unfortunately closing escrow isn’t always enough.