Mortgage Company reporting $22,000 after foreclosure!

[hurtininaz]

I am dealing with Metlife Home loans and experian. I disputed the report when it read that I received a forclosure in May because it was discharged last November. The dispute came back as "remains" tonight and now they are reporting a balance due of $22,000 on an open account. I am seeing red! Can I keep disputing this item, is what they are doing even legal after discharge?

[Brazzy]

It does not sound right. it should be reflecting BK. However understand that when you pull a credit report from a single agency it will not be 100 % accurate. Your best bet is to simply submit a dispute to experian. They will have 30 days to validate whether or not what they are reporting is accurate. If they are wrong they will let you know. It doesnt sound right and its worth a shot. However I cannot be sure unless the report is in front of me.

[StartingOver08]

First send your dispute CMRRR (certified mail return receipt request) to the CRA, do not dispute online. This is for a reason.
Then if the dispute comes back verified, dispute with the original creditor (OC).
Then if the dispute still comes back verified or is not changed to the correct reporting, bring the OC to court. There is no question that this is incorrect reporting. There is case law to support you. Look here: http://www.myfaircredit.com/forum/viewforum.php?f=6

That link contains all kinds of case law for BK reporting. Don't let the OC get away with it.

[hurtininaz]

Thank you for the replies. I could hardly sleep last night from being so upset. I looked at the report again, they are reporting the account as open, $22,000 behind and still owe the orignal $230,000 loan amount. They have been reporting lates since July of last year straight thru the bk. I know they are aware of the bk because they lifted the stay to continue the forclosure. When I diputed the item it read forclosure, now it reads open??? Argh! I guess I am typing dispute letters with backup today, who knew providing the bk number and discharge date wouldn't be sufficient evidence when it reports at the top of the credit report.

[justbroke]

If you filed with an attorney, then you can proceed with a more formal demand. That may include filing for sanctions since reporting is generally considered a willful attempt to collect a debt.

[hurtininaz]

Unfortunatley I don't have an attorney, I guess they can pay for my attorney as part of damages if they can't figure out bankruptcy 101 basics.

Here is a draft of my letter to the OC:

Metlife Home Loans
Legal Department
4000 Horizon Way
Irving, TX 75063

May 8, 2010


To Whom It May Concern:

You are directly violating my Bankruptcy Discharge Injunction from November of 2009 and my rights under the Fair Credit Reporting Act.

1) You are reporting Metlife Mortgage account xxx INCORRECTLY on my 5/8/2010 Experian credit report:

a) You have re-aged this account in violation of the FCRA.

b) You are reporting $21,322 past due as of May 2010

d) You are listing a foreclosure as of Apr 2010, 5 months after my bankruptcy discharge

e) You are reporting 180 days late after my bankruptcy petition was filed

You verified this information in May of 2010 with the pertinent bankruptcy information provided to you in the Experian dispute form.

The FACTA act section 15 U.S.C. and 1681 S-2, 623 states that furnishers may not report information that it knows or has reasonable cause to believe is inaccurate.

Metlife filed a Relief of Stay from the BK petition with the United States Bankruptcy Court in the District of Arizona - Phoenix Division and received an Order of Relief dated xxxx. In applying for the Relief of Stay, Metlife recognized that the bankruptcy petition was filed and that the petitioners intended to surrender the property in full satisfaction of the claim. Metlife is well aware of this bankruptcy petition yet continues to report information that it knows is inaccurate.

You are reporting this account in violation of the US Bankruptcy code. The US Supreme Court:

"One of the primary purposes of the Bankruptcy Act is to give debtors a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt."

Your reporting of this preexisting debt has destroyed this "clear field for future effort", I have a rental lease expiring on June 1, 2010 and am currently seeking employment, both of which will be negatively affected by this careless reporting.



Below is a link to the FTC website regarding a similar case:

http://www.ftc.gov/os/statutes/fcra/lovern51.htm

That says

"Section 607(b) of the FCRA requires credit bureaus "to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates." In our view, it is not a reasonable procedure to label an account that has been discharged in bankruptcy as "charged off as bad debt" if the account was open and not charged off when the consumer filed bankruptcy. Such a designation would be inaccurate or misleading, because it would indicate that the creditor had written off the account at the time of bankruptcy when it had not in fact done so."

If the FTC thinks it is unreasonable to show a "Charge off" or "bad debt" after a property was discharged in bankruptcy they sure wouldn't like to see a foreclosure that may or may not have happened after discharge.

For your use:

Discharge of Debtor 11/30/09; District of Arizona Case No: xxx

The debtor is granted discharge under section 727 of title 11, United States Code by Redfield T. Baum Sr., United States Bankruptcy Code.

This information needs to be changed immediately. The only acceptable reporting is a $0 balance and Included in Bankruptcy. If this information is not changed by June 14, 2010, I will file a motion with the Bankruptcy Court to find you in violation of my discharge order with appropriate damages and legal fees.

Regards,

xxx

[justbroke]

Reads nice to me, only I would not have so much of your specific information above (including your lender). I like the letter, although it does say a LOT.

Personally, I would call and find out who the General counsel is for them, and address the letter and mailing to that person. Always CMRR (Certified Mail Return Receipt). I would also demand that they write back within 10 days, not until June 14, and inform you that they have removed the incorrect information from the credit reporting. Without a written response, you then proceed.