reaffirmed mortgage reporting as closed and included in BK on credit reports1

[kerril]

My husband's bk was discharged almost 2 years ago. When he filed, he reaffirmed his mortgage and continued to pay on time throughout the whole ordeal (every payment has been paid in full and on time since it was opened back in 2005). But on his credit report with all 3 agencies it's showing as closed, zero balance, no payment activity since he filed 2 years ago and that it was included in bankruptcy. We disputed with all 3 companies and included proof that the mortgage is open and being paid on time every month but they all replied saying basically that "they investigated but there is nothing to update". I wrote a letter to OCWEN (the mortgage company) direct with all the back up and the wrote back saying they will look into it but that was over a month ago. After he filed, OCWEN stopped sending us bills and our tax statements so we had to call and get them to start sending them again but that was over a year ago. Can anyone advise? We are trying to get his credit report looking good so we can try to refinance the high (6.75%!!!!!) loan and need this to be corrected.

[skyblue69]

My husband's bk was discharged almost 2 years ago. When he filed, he reaffirmed his mortgage and continued to pay on time throughout the whole ordeal (every payment has been paid in full and on time since it was opened back in 2005). But on his credit report with all 3 agencies it's showing as closed, zero balance, no payment activity since he filed 2 years ago and that it was included in bankruptcy. We disputed with all 3 companies and included proof that the mortgage is open and being paid on time every month but they all replied saying basically that "they investigated but there is nothing to update". I wrote a letter to OCWEN (the mortgage company) direct with all the back up and the wrote back saying they will look into it but that was over a month ago. After he filed, OCWEN stopped sending us bills and our tax statements so we had to call and get them to start sending them again but that was over a year ago. Can anyone advise? We are trying to get his credit report looking good so we can try to refinance the high (6.75%!!!!!) loan and need this to be corrected.

Hi Kerril,
We filed chapter 7 no asset a little over 5 years ago. Not sure if this is entirely accurate but here is how I understand it re: the mortgage. Did not reaffirm the mortgage, did a "stay & pay". Our mortgage also does not report to the credit agencies even though we continue to pay monthly. Basically, there is nothing to report, the mortgage balance was discharged in bankruptcy. However, the mortgage company still holds.a lien on the actual property for the remaining balance. Mortgage company said as long as the payments continue to be paid as usual, nothing changes, business as normal. Mortgage balance cannot be refinanced as the mortgage balance was discharged down to zero, nothing there. Only was to lower the interest rate is to take out a new mortgage, not a refinance. Another little legal quirk, at any time we can simply walk away from the property and own nothing as our mortgage was discharged down to zero in the bankruptcy. Again, not sure if this is how it works, but it's something to think about. Dan

[jst4f]

Sounds like you didn't reaffirm, or at least the bank doesn't think so. The bank is acting like you did a stay and pay. A BK judge has to review and approve the reaffirm. Simply stating that you want to reaffirm in the BK forms is not sufficient. Do you have the judge's ruling?

[LadyInTheRed]

Sounds like you didn't reaffirm, or at least the bank doesn't think so. The bank is acting like you did a stay and pay. A BK judge has to review and approve the reaffirm. Simply stating that you want to reaffirm in the BK forms is not sufficient.

That was my thought, with a little clarification. Did you actually sign a reaffirmation agreement that was filed with the court and either (1) the reaffirmation agreementt was accompanied by a declaration by your attorney stating that reaffirming is not an undue hard ship or (2) the reaffirmation was approved by the judge? If not, you did not reaffirm.

If you did reafirm, then the bank may not realize it or they didn't update their records. I filed a Chap 13 and a first mortgage is not discharged in a Chap 13. I was discharged almost 2 years ago and the BK just fell off my credit reports. The bank only just now started reporting to the credit agencies again.

[RetiredArmy]

My husband's bk was discharged almost 2 years ago. When he filed, he reaffirmed his mortgage and continued to pay on time throughout the whole ordeal (every payment has been paid in full and on time since it was opened back in 2005). But on his credit report with all 3 agencies it's showing as closed, zero balance, no payment activity since he filed 2 years ago and that it was included in bankruptcy. We disputed with all 3 companies and included proof that the mortgage is open and being paid on time every month but they all replied saying basically that "they investigated but there is nothing to update". I wrote a letter to OCWEN (the mortgage company) direct with all the back up and the wrote back saying they will look into it but that was over a month ago. After he filed, OCWEN stopped sending us bills and our tax statements so we had to call and get them to start sending them again but that was over a year ago. Can anyone advise? We are trying to get his credit report looking good so we can try to refinance the high (6.75%!!!!!) loan and need this to be corrected.

You may want to see if you qualify for a HARP LOAN! https://www.harp.gov/

Also are any of you Veterans? The VA has some great refinancing options and interest rate reduction programs that don't require you to get an appraisal.

http://www.benefits.va.gov/homeloans/

[sophieanne]

Hi kerril I never reaffirmed by mortgage and it reported as yours does. We were discharged in 08/16. Regardless of how it's reportiing you don't need to worry about refinancing. Any company/bank you deal with can request a report from your bank showing that you have not been late/delinquent over the past year.