New Here Need Advice

[Elaine 07]

Hello. I am new here but need a little advice. I refinanced my home in July 2005. In September 2005 I filed bankruptcy. It was discharged March 2006. My home was not reaffirmed in bankruptcy at all. In January 2007 we sold this home however, we can not get the mortgage company to take it off our credit report that this house was paid in full 15 years ahead of schedule. I will be looking to buy another home in the summer of 2008. I have followed advice on here and reestablsihed credit. I have one year plus of on-time payments. When I purchase new home it will be two years plus on-time payments. We would like to go with FHA. Will this credit report thing hurt our chances? Should they report that it was paid in full? Its just like it is already gone in bankruptcy even though every dime was paid. Thank you very much for your time. Elaine

[HHM]

Have you disputed the account status with the Credit Reporting Agencies?

[Elaine 07]

New Here Need Help

No I havent. I have just disputed with the mortgage company. I am sending out letters to all three agencies. Hopefully they will be able to do something. Thank You Elaine

[CindyLou]

Elaine,
Unfortunately, because you filed bankruptcy before you sold the house, your mortgage will probably always say "Included in Bankruptcy" Technically, the debt you owed on the house was zero the day you were discharged. You voluntarily stayed in the house and continued to make payments and the mortgage company allowed you to do so. You did what is called a "ride through" In this situation they do not change the credit report.

I understand your frustration because I had the same reaction as you when I did a ride through on my car. I called Ford Motor and chewed them out for not reporting correctly. Then I came to this board and learned that they were right.

You can get a letter from the mortgage company regarding your payment history to have in hand when applying for loans, but honestly I think the main thing is that you do not have a foreclosure or late payments on your report.

Again, technically, you did include your house in the BK, so the report is correct.

Sometimes you can dispute and get them to change it but unless you reaffirm the debt, they are reporting correctly.

[CindyLou]

I would also like to add, that if you had just walked away from the house in Jan 2007 instead of selling it your credit report wouldn't say anything different. They don't give you any "points" for doing it any differently once you've filed. Kinda sad in a way.

[Elaine 07]

New here need help

Thank you all for your answers. I understand that it needs to say included in bankruptcy. Here is my beef with them. They do not have my balance as 0. They still have a balance and it is like I am delinquent. I just want them to report that it was paid and closed. I will send those letters out. Thank you all so much for your help. I do appreciate it very much.

[CindyLou]

You are 100 percent correct! It should say zero balance!

[MTG_BANKER_OH]

Hello. I am new here but need a little advice. I refinanced my home in July 2005. In September 2005 I filed bankruptcy. It was discharged March 2006. My home was not reaffirmed in bankruptcy at all. In January 2007 we sold this home however, we can not get the mortgage company to take it off our credit report that this house was paid in full 15 years ahead of schedule. I will be looking to buy another home in the summer of 2008. I have followed advice on here and reestablsihed credit. I have one year plus of on-time payments. When I purchase new home it will be two years plus on-time payments. We would like to go with FHA. Will this credit report thing hurt our chances? Should they report that it was paid in full? Its just like it is already gone in bankruptcy even though every dime was paid. Thank you very much for your time. Elaine

FHA will be a good option for you, and it was good you sold the house instead of letting it go because FHA requires 3 years from FC. With the reporting issue you can show your canceled checks o prove you were paying the mortgage.

I am no expert on credit reporting and I think you should be able to get it resolved one way or another.