Credit Reporting After Bk
I posted this on the foreclosure forum, but maybe this is a better choice. I got into a bad situation with a former male friend in which I put a property in my name and took out a mortgage. Needless to say, he collected rent and didn't pay mtg or taxes. I believe the city has foreclosed on property for tax arrears, though no lis pendens was ever listed against me in the register of deeds. I have since had to file for bankruptcy due to the illness of my child and the mortgage and taxes were included in this bankruptcy (a ch. 7). Now almost a year out of my bk I am financially stable, have a steady job, child is doing well and have the opportunity to purchase a home from a family member with the help of a gift of equity. Which brings me to my issue, the mtg company who held the mtg on the property in the bankruptcy is continuing to report the account as 120 days past due, and say they are fully within there legal rights and will continue to report 120 days past due as long as they list the account included in bk on the credit report. The underwriter at my new mtg lender is questioning the lates, and may cost me the mortgage. Please help...I only need 50-65% ltv with the gift of equity assisting me with the rest of the purchase price. House is valued at around 119000 and purchase price is 113360. Any advice is greatly appreciated
You need to get a copy of your credit report from all three bureaus. Get a copy of your BK discharge papers. Go over your credit line by line. Make sure all lines that were paid in BK are reporting zero balances. If not send a copy of credit report, discharge papers, all schedules. to all three credit companies Highlight descrepencies and asked that they be corrected. Zero balances affect mtg, not lates on a mtg that was included in BK
Lori
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thanks for your response, I have already disputed this issue with the credit bureau, the company continued to report after the dispute. I contacted the bureau today and explained the situation. They are disputing again to the company for the report after the dispute date. However the new mtg underwriter is looking for a letter from the former mtg company stating that the 120's are an error since there is no balance owing after the bk. Of course the old co will not do this as they are out the $ owed on the last mtg.
You are missing the point. Once the Bankruptcy Court has declared the debt discharged that is all the credit company needs. The schedules show there is a zero balance and that is the end of it. There is no disputing the BK Papers.
Lori
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If not send a copy of credit report, discharge papers, all schedules. to all three credit companies Highlight descrepencies and asked that they be corrected.Whoa! Know the potential impact before sending BK papers to the CRAs. Yes, you may get those lines reporting correctly (something you can also do by disputing with the creditors) ... but many say you also give up any chance of disputing the BK itself off your reports early, which other folks have had success doing.
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On 2004-10-26 11:54, tinman1755 wrote:
You are missing the point. Once the Bankruptcy Court has declared the debt discharged that is all the credit company needs. The schedules show there is a zero balance and that is the end of it. There is no disputing the BK Papers.
Lori
I do understand your earlier point. I understand that there is no disputing the BK papers..however the new mortgage company does not seem to share our view. They are questioning the fact that though there is a zero balance the co. Citifinancial continues to report the 120 after the bk date. My bk attorney has sent the new underwriter stating basically the same point. We'll see if it works. Will post to let you know. Thanks for your input.
Just wanted to update those who helped...I went to work to get this loan done. After I disputed the 120's I went to work documenting everything I could for the new mtg co. Had a friend who works at the register of deeds make copies of the tax foreclosure which was over 12 months ago ( the new mtg co's cut off time for allowing more LTV) also had my bk attorney write a letter regarding the 120's basically stating that the company reporting was breaking federal law by reporting after the discharge. The new mtg company cleared the stip and we will be able to close within the week. Thanks to everyone that responded. By the way...to the person who wrote about getting the bk off early...how does one do this, and what is the benefit to doing so.
The benefit to disputing BK is if they take it off, any one who looks at your report will never know it happened besides your score going up. As far as how to do it, I guess just like disputing anything else, but I'm not really sure and hope the answer is posted soon. 8-)
I have used Bradley Ross Law and have had great success removing many items, including a bk from mine and my wife's reports. I highly recommend them, especially shorly after bk. We have 650-750 scores now, got a 100% LTV @ 6.25% 23 months after chapt. 7. Holidays are always a good time also, becuase the CRA's and creditors have less time to process the high volume of verification requests, which leads to the big "delete" off your reports.