Going on 8 years

[snaggelpuss]

I got a new mortgage, was okayed for one, never paid a payment for 60 days, then found out mortgage actually didn't go through and broker never told us. I filed chapter 7 bankruptcy in 2005. It was dismissed in May of 2005. We had a farm that we owed about 86k on 40 plus acres. Washington Mutual had us so far in the hole, we couldn't catch up. We filed chp7. About 60 days after the bankruptcy was dismissed, we received a new mortgage bill from a new company. Aurora Loan company. I never even knew who they were. They said Washington Mutual sold the mortgage with our name on it. So they ruined our credit after the bankruptcy. I tried to get an attorney to fix it, I even got paperwork from the clerks office showing we never made a payment to Aurora Loan. I filed a dispute with all 3 credit bureaus and lost. So a lesson to be learned. Just filing bankruptcy doesn't always fix stuff. 8 years later and our credit is still ruined for a mortgage we never made. The new Mortgage company laughed when I called them up, said you owe us the money, make your payments. I had lost the farm, and they had resold it and made a ton of money. I'll never buy another home in the years I have left to live. Thanks Aurora Loan company for a gift that keeps on giving.
Merry Christmas.

[LadyInTheRed]

snaggelpuss, your post is confusing. Did you file a BK in 2005 and then again later? Was/were your case(s) dismissed or discharged? There is a huge difference. If it was dismissed, why? If it you received a discharge, did you reaffirm your mortgage? If you were discharged, Did you send Aurora a copy of your discharge order? What did you say when you disputed credit reports and what were the responses to your disputes?

If a debt is discharged in bankruptcy, you no longer have to pay on it, even if it is sold. They can still foreclose on the mortgage, but they can't make you pay anything to them if there is a deficiency. A BK doesn't repair your past negative credit history, but creditors cannot report delinquencies on discharged debt after your BK filing date.

[HHM]

As sympathetic as I am to debtors, somehow I have the sense there are 2 sides to this story with very different, and probably equally legitimate, viewpoints.

First, you said your BK was "dismissed"...is that what you meant, or did you really mean "discharged." Two very different things. If dismissed, then your BK was never complete and you WOULD NOT have received any benefit to the BK.

Second, mortgages can be sold and transferred to other lenders, it is common and perfectly legal. I am not sure where this idea that if you take out a loan with X company, you are only obligated to pay X company has seeped into our financial cultural. Transferring of notes and deeds has been written in every standard form mortgage deed and note for at least the last 40 years.