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How is discharged mortgage supposed to be reported if not re-affirmed?

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    #1

    How is discharged mortgage supposed to be reported if not re-affirmed?

    Hi all,
    This is my first post of probably many questions to come
    I filed chapter 7 and was discharged in Dec 09. It was closed in Sept 10.
    My mortgage company started sending me the statements last fall that say "this is not an attempt to collect debt" yada yada. I had been paying on it up until this month.

    I did not reaffirm my mortgage (Beneficial) but it was included in the bk filing as discharge. and after checking my credit report it is not listed AT ALL on any of the reports, all my credit card accounts show that they were discharged in BK, and closed by grantor. But I am curious, is not Beneficial required to report the loan as discharged? or is there some underhanded reason they are not reporting that?
    I know I will be going into foreclosure, but just wondering what the non-reporting is all about? Should I be filing a dispute? because once they report that they cannot legally report the impending foreclosure? is this way off base?

    Thank You!
    M
    Tags: None
    #2
    I'd be thrilled that it isn't on any of your credit reports. Technically, it is supposed to be listed as IIB and zero balance and that's it. My mortgage company decided they were going to report it as IIB with zero balance but with dates of last deliquency AFTER my filing date. So, I'm fighting now to have them deleted. I got my second mortgage removed from my reports but now I'm working on the first.

    The foreclosure should not show up on the mortgage trade line. There is much debate over whether you will see another public record show up on your credit. I and some others have reported that no additional public record showed up on their reports after the foreclosure, but it could be possible.
    BK Ch 7 Discharged 09/2009 | Anything I say can and should be used as friendly advice and sharing of experiences with an unbiased viewpoint.
    Scores: EQ 745 EX 704 TU 710 as of 08/15/2012

    Comment

      #3
      Thanks for the reply, Amy

      I have been reading through a lot of posts here, and there does seem to be a debate about how the foreclosure is reported, and if it is.

      I guess i am worried that there might be some sneaky reason on Beneficials half, to do this in case I default. Very suspicous by nature, lol, especially when it comes to loan companies!

      I haven't received a notice of default yet, just wondering if people who have already had their mortgage discharged, then defaulted, still get the same rights as far as the foreclosure process as those who have not had bankruptcy and just foreclose. I mean, technically there is no loan now, so how can it be foreclosed?

      All these thoughts running through the head. I suppose the stress of going through a foreclosure and trying to find another place is going to be a challenge to keep in check.
      I am hoping when I do have to be out, to find a rent to buy situation.

      Comment

        #4
        Well, its not the loan they are foreclosing on, its the title to the home. Foreclosing just gets your name off the books. It really depends on the mortgage company and how up on stuff they are. Mine was a total annoyance... I stopped paying a month before I filed in 2009. I had never received any kind of adverse action type stuff from them ... they just kept sending me past due bills. Even after discharge. I had to call them and ride their asses and push for them to proceed. Then finally in April of 2010 I called to find out what the hell was going on and got transfered all around and found out oh, the home reverted back to the bank like 2 weeks ago. I'm like WTF... I had no notification or anything. I had to send a written letter to the law firm that did the foreclosure asking for proof that the foreclosure had happened... it was a mess. They apparently sent all the notices about stuff to my property... and they knew I didn't live there.

        Anyhooo... everyone's experience is a little different and like I said it is all up to the mortgage company. I would just relax and not worry about it too much... I didn't get anywhere by stressing. Cause after it all forecloses you then get to worry about how to report it on your taxes!
        BK Ch 7 Discharged 09/2009 | Anything I say can and should be used as friendly advice and sharing of experiences with an unbiased viewpoint.
        Scores: EQ 745 EX 704 TU 710 as of 08/15/2012

        Comment

          #5
          Originally posted by Amy26 View Post
          Well, its not the loan they are foreclosing on, its the title to the home. Foreclosing just gets your name off the books. It really depends on the mortgage company and how up on stuff they are. Mine was a total annoyance... I stopped paying a month before I filed in 2009. I had never received any kind of adverse action type stuff from them ... they just kept sending me past due bills. Even after discharge. I had to call them and ride their asses and push for them to proceed. Then finally in April of 2010 I called to find out what the hell was going on and got transfered all around and found out oh, the home reverted back to the bank like 2 weeks ago. I'm like WTF... I had no notification or anything. I had to send a written letter to the law firm that did the foreclosure asking for proof that the foreclosure had happened... it was a mess. They apparently sent all the notices about stuff to my property... and they knew I didn't live there.

          Anyhooo... everyone's experience is a little different and like I said it is all up to the mortgage company. I would just relax and not worry about it too much... I didn't get anywhere by stressing.
          Cause after it all forecloses you then get to worry about how to report it on your taxes!



          Ok, you are kidding, right?? lol

          Comment

            #6
            Amy26 must be kidding when she states "Cause after it all forecloses you then get to worry about how to report it on your taxes!".

            There is no "forgiveness of debt income" for a debt that has been discharged in bk. You may get a 1099 from your creditor(s) but there is no tax consequence.

            Des.

            Comment

              #7
              Thanks for posting Chap7girl. I was searching on this question. I just pulled my TransUnion and Equifax FICO scores and noted that on my TransUnion the mortgage company is updating the closed date every month, so it looks like I have a new late or derogatory reported every month which is affecting my FICO score. I pulled it 6 months ago and saw it, but didn't question it. Today, I called FICO and they told me why.

              So the question I'd like to add, if you're still paying on the mortgage, does the mortgage company show it's open or closed? and if closed is it the date of the bk, discharge? They are showing paying as agreed.

              Comment

                #8
                It doesnt matter how they report it. Bottom line is.... you will be unable to buy a home until 3 years after they have transferred the deed. Have they done that yet? Our isnt on our credit report yet either. Technically we would be able to buy after 2 years in September. We started mortgage shoping now. To find out!!!! No deed transfer. Our house has been sitting empty for over a year. I thought it was over. No notices nothing. So when do they have to take the dead so my 3 year clock can start. Never there are no laws to make the banks take the deed even though they own the home! I cant transfer the deed or sell it to any one else with out their approval. What a joke. They may never take the deed back. Find out if the bank has taken the deed that is what will matter if you ever want to own a home again.

                Ok I think this is my 15 of 15 post. I will try to go post my links on Walk away take my home already! Couldnt post them until I had 15 posts

                Comment

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