Forclosure vs Bankruptcy vs Paid in Full

[EdytaHome]

Tricky Question.
I had discharged 2 houses during BK, one of which sold on a short sale right before discharge. This Q is concerning the house which sold.

The house was sold while it was in foreclosure status but it never foreclosed, obviously. The sale also completed before discharge with the courts permission. The 1st mortgage was paid in full the second was a short sale. How should this item be reported on my CR? Since there were 2 mortgages and there are 3 CR bureaus, it seems like everyone is reporting something different.

1. Since the house was sold, shouldn't it say sold/paid in full?
2. Should the second mortgage say that too (the 2nd mortgage agreed to the sort sale)?
3. Should bankruptcy be mentioned in there at all, the houses were listed in the BK.
4. Should foreclosure be stated in there at all, it never went in to foreclosure sale, only foreclosure status.

HELP!

[EdytaHome]

Any suggestions?

[coolbreaker]

your matter looks like you need a professional advisor... see what others have to say, but professional advice is always more important

[EdytaHome]

I would if I could afford one...

[Minnymouth]

This is one for the "big guns"!!!

Minny

[EdytaHome]

So where are the big guns when you need them?

[tinroofrusted]

This is a tricky one.

I would first dispute this one, and say "verify this entry in it's entirety. If you cannot, then the item must be removed." And go with that first.

If that doesn't work, dispute it, as "not mine."

If THAT doesn't work, dispute it as IIB, and that should be able to get that out of foreclosure for ya and raise your scores.

Hope this helps.

[HHM]

Yeah, this is a tough one and I don't have a good answer for you. Again, credit reporting is all about the "truth" or accuracy.

If you listed the mortgages in the bankruptcy and said you were surrendering the home, the I think number (1) would not be accurate, even if sold at short sale before discharge. The reason the 2nd mortgage agreed to the short sale is they probably would not have done better by fighting it.

I think the best you can hope for is "Included in Bankruptcy"

As to foreclosure, once foreclosure starts, that is the key timing and they can report that the note went into forclosre (same thing for bankruptcy, once you FILE bankruptcy, that is the moment it creates the credit report entry. Many people assume that if the case is dismissed without going to discharge that bankruptcy should not be reported, that is false, same goes for foreclosure).

I would still dispute the foreclosure entry and try to get the mortgage notes to state "included in bankruptcy", I think that is the best you can hope for.

[EdytaHome]

I was hoping it should just say sold, since on one of my credit reports (Equifax) it states sold/paid in full.
OH well, I'll try for bankruptcy.
Thanks