Experian reporting discharged yet modified loan

[CCsAreEvil]

So, back in 2009, I included both my 1st and 2nd loans on my house in my BK. A couple of years back, the foreclosure process was started (when I initially decided to let the property go into foreclosure). Meanwhile, I was able to make use of the HAMP (I'm pretty sure that was the term) program and get a loan modification. Since then, both Equifax and TransUnion both still put a zero balance and IIB on my report.

However, Experian continues to report the balance owed on my 1st. After I mailed my dispute with even including my legal discharge notice from the court, Experian said that the mortgage lender notes the account was modified so they can report it (that it was legal for them to do so). Mind you, I've always been current on my mortgage payments, so they continue to post monthly updates of "OK" (ontime payments). Yet still, EQ and TU don't report and show IIB status (which is what I expect).

But perhaps, this actually helps my Experian score? Who knows.. Wondering what happened to others who also did not reaffirm but continue to pay (and possibly with a loan mod).

Just to clarify, the loan mod was done "post" BK, after discharge.

[CCsAreEvil]

I figured no one is in my same situation.. but anyhow, maybe this information will help those who will browse this forum in the future.

I had disputed with Experian on this (disputed items don't count towards your FICO score) .. honestly, I don't know if I actually took them to court on this if I would actually win? So, it's not worth my time.. instead, I've told them that I'm no longer disputing this, and they can go ahead and report the mortgage balance and payments (take the item out of dispute status). With this, my score actually went up about 10 points.. go figure. It's interesting that having a "secured" loan like a mortgage or auto loan can increase your credit score.. especially with a history of all on time payments.

Either way, we plan to sell our home later this year.. and at that point, this will show as paid off.

Happy BK credit re-building!

[LadyInTheRed]

Experian is wrong about the modification making it legal to report. If you persisted, you could probably get them to remove it. But, unless you default it is a positive entry. So, why dispute. If and when you do default, I would dispute it again saying that even though the mortgage was modified, it is still a discharged debt.

[tobee43]

Experian is wrong about the modification making it legal to report. If you persisted, you could probably get them to remove it. But, unless you default it is a positive entry. So, why dispute. If and when you do default, I would dispute it again saying that even though the mortgage was modified, it is still a discharged debt.

agreed. as Lady points out it still is a discharged debt and now you are making timely payments and that will help, you just need to wait to everything starts dropping off. it takes a few years.

[CCsAreEvil]

Yeah, thanks for the advice. I was just rather taken even when I sent my discharge papers, they still doubted it. They were trying to say it was a newly modified loan. .whatever that means.

But I did look over my modification papers with CitiMortgage, and it does infact still note the debt is discharged. Again, it actually raised my score because having a mortgage loan with a perfect history of ontime payments increased my score by about 10 points.

Lastly, this will actually all go away soon! We just sold our house in which the loan was included in bankruptcy! With today's market, we have decent equity again. It's somewhat exciting and scary at the same time. We've already got pre-qualified to buy another home.. which means new debt again.. but at least it's "mortgage" and not credit card revolving. We did have to wait 4 years post discharge to do a conventional again.

So, with the help of this forum (rebuilding credit) and such, this actually helped us. Our credit scores are around 700 again. However, my lender did tell me stupid Bank of America marked my IIB account with the CRAs as "updated" last year which is preventing my score from going higher (like 720.. which I am still shooting for). It makes it look like I have a recent delinquency within the past year. Arg! I'm just stuck in the 700-719 range for lending rates.