Credit Reporting Following A Bankruptcy
I have a situation I am hoping someone can help me out with. After getting into a bad situation with a former male friend, in which I put a property in my name and took out a mortgage, I was unable to keep up on mortgage payments because he was pocketing rent and not paying mortgage or taxes. I also had financial difficulties due to a family member with a serious health condition. I was forced to file for bankruptcy in which the mortgage loan and back taxes were included ( I believe the city to have actually foreclosed on the property for back taxes though no lis pendens was ever listed in my name at register of deeds). Which brings me to my current problem. I have gotten back on my feet a little less than one year out of bankruptcy, family member is doing well, rented an apartment for a little over two years and am now looking to purchase a home from a family member with the help of a gift of equity, however, the mortgage company who held the mtg on the property included in the bankruptcy is continuing to report the mortgage as 120 days past due and says they are fully within there legal rights to do so as long as they report that the account was included in a bankruptcy. I have spoken to my bankruptcy attorney and he says they should not be allowed to continue reporting it, as this is considered a collection action. Please any suggestions on how to go about alleviating this problem as the new mortgage lender is questioning this past account.
The BK attorney needs to write a letter to the bank. A *strongly worded* cease & desist letter. It also needs to go out the the credit bureaus.