I'd like to just give up!

[nomoneynomore]

We thought we had finally found someone to work with us on a mortgage, but alas, another swift kick in the butt.

Our bankruptcy discharged Sept 2008. We reaffirmed our house & paid on time every month after the discharge, then sold it in March 2009 & paid it off. Imagine our surprise when our lender informed us that it was being reported as 30 days late Nov & Dec 2008 and Feb 2009 then as being charged off in March of 2009.

Is there anything we can do about this to correct it? This is the one snag standing between us and having a place to live.

[LadyInTheRed]

If the information in your credit reports is not accurate, you need to dispute the inaccruate entries. Start by requesting copies of all 3 credit reports using https://www.annualcreditreport.com/cra/index.jsp. You can then dispute the incorrect entires on each credit bureu's website. The morgage company may correct it based on your initial dispute. If they don't respond to the dispute, the negative entries will be removed. If they insist the entires are correct, you will need to provide evidence that you paid on time and that the mortgage was paid in full. So, start gathering the evidence now if you don't already have it handy. The best evidence would be copies of statements from the mortgage company showing timely payments. If you can't get those, then cancelled checks will work. Get a copy of the closing statement from the sale to show the mortgage was paid in full.

It often takes persistence to get credit reports corrected. Don't give up!

[nomoneynomore]

I'm not sure what it should actually show on our credit report. It shows in the notes as included in bankruptcy, but then shows the three 30 day late & the charge off AFTER our discharge. Should it just show as included in bankruptcy, or should it show the payments as on time after the bk? I was told they would not report anything at all after the bk, even if we did pay. Also, we never received statements or letters the bk date, they woudn't even talk to us on the phone!

I have contacted the bank to see if I can get statements reprinted, but they weren't sure they could go back that far. I contacted the mortgage company, and they told me the account had been purged out of their system and they didn't have any information at all on it.

Experian is the only one showing anything. It states:
Account Name: PNC MORTGAGE
Account Number: XXXX
Account Type: Real Estate
Account Status: Closed
Monthly Payment: -
Date Opened: 01/2000
Balance: -
Terms: 360
High Balance: $52,984
Limit: -
Payment Status: Current
Comments: Account closed at consumers request
Collateral: BANKRUPTCY CHAPTER 7

Then under the 24-Month Payment History
March-October 2008 OK (bk discharged Sept 2008)
Nov 2009 30
Dec 2009 30
Jan 2010 OK
Feb 2010 30
Mar 2010 CO
We sold the home and paid it off in March.

How should this be reporting?

[LadyInTheRed]

I don't know how a reaffirmed paid off mortgage should report. Maybe someone else here will. I do know that if you were never late, they shouldn't report you as being late. You might talk to the lender who turned you down, explain the situation and ask them how they think it should report. If they can't help, talk to a mortgage broker. They may help in order to get your business. Or, when you dispute the report, Just say you were never late, that you reaffirmed the loan in BK and later paid it in full.

One thought: are you sure you reaffirmed your mortgage, or did you just state in your petition that you intended to reaffirm? Did you actually sign a reaffirmation agreement that was filed with the court and approved by your attorney and/or the court?

[nomoneynomore]

We signed a reaffirmation agreement, they wouldn't allow a ride through.

"One thought: are you sure you reaffirmed your mortgage, or did you just state in your petition that you intended to reaffirm? Did you actually sign a reaffirmation agreement that was filed with the court and approved by your attorney and/or the court? "

[HHM]

What do you mean they wouldn't allow a ride through, who wouldn't?

Ride through are a alive and well for REAL ESTATE.

Anyway, that is water under the bridge. All you can do is dispute the entries and keep at it.

[Logan]

We thought we had finally found someone to work with us on a mortgage, but alas, another swift kick in the butt.

Our bankruptcy discharged Sept 2008. We reaffirmed our house & paid on time every month after the discharge, then sold it in March 2009 & paid it off. Imagine our surprise when our lender informed us that it was being reported as 30 days late Nov & Dec 2008 and Feb 2009 then as being charged off in March of 2009.

Is there anything we can do about this to correct it? This is the one snag standing between us and having a place to live.

You should have the proof of payment from Bank Records to dispute it.. Also, a good mortgage broker/loan officer will work with you to get this fixed and they should have a relationship with the company that pulls your credit and he/she can submit disputes through that company. It generally costs a little bit to do it that way but it should be quicker.

Logan

[ValleYum]

I contacted the mortgage company, and they told me the account had been purged out of their system and they didn't have any information at all on it.

My curiosity (and a flight delay) begs the question - if the mortgage company purged all the info wouldn't they (by law) be forced to remove the entry since it can not be validated?

[IBroke]

My curiosity (and a flight delay) begs the question - if the mortgage company purged all the info wouldn't they (by law) be forced to remove the entry since it can not be validated?

That's EXACTLY what I thought when I read that....The lender can't have it both ways.

And if they stop recording after BK, they mustn't report lates after filing. And if they continue reporting (which they could if it was reaffirmed), it has to be accurate AND verifiable in case of a dispute.

[justbroke]

Sometimes you just have to start by sending certified mail-return receipt (CMRR) demanding that it is corrected. You need to do this in writing directly to the lender reporting incorrectly. I actually have, on my desk, 4 envelopes going out today, that go after my mortgage company that continues to report me to the credit bureaus! They have done this 58 times (across all three bureaus). In my letter I enclosed the discharge order and let them know that I'm prepared to re-open the case on Day 31 to have the Judge impose a $1,000 penalty for "each" occurrence of false reporting. (Oh, and damages of 2:1)

I'll let you (all) know how that works out for me.

[LSUTiger32]

Surely know how you feel, I did give up and I am now waiting until the full 2 years have passed even though I have the extenuating circumstances to qualify early. The problem is that they are all so gun shy now because of the way they handled themselves in the past (which led to the bubble burst) that they are stricter now than ever. I am just waiting until November and then we shall see what excuse they come up with then. Defintely dispute the markings and fight it, it can't hurt!

[nomoneynomore]

We are giving up on buying a house. We figure if we rent for a year we will be in a better position all the way around & can get what we WANT, not what we have to settle for. Renting in our area is a last choice, but one we have to make.

[LSUTiger32]

I think that is a good move! Rent for a while, save up a strong down payment, let some more healing time pass and then you guys will be able to get whatever you want. Nothing wrong with holding back a little bit now to get something better later!

[nomoneynomore]

Thanks LSU. Now to find a rental. We live in a very rural area & rentals are few & far between (so many foreclosures that are now in the rentals). We have kept our eye open since March for a rental & nothing has come up yet. In Sept our bk will be 3 years old then in Jan we will have one of our loans paid off. He will also have almost a year on his job so we will be able to use all his overtime to count toward our income. The loan and overtime should help our debt to income ration quite a bit. I can't imagine that home prices will go up too much considering how many are for sale here in that time frame. At least we sure hope not!

[LSUTiger32]

Yeah, I don't think home prices or interest rates are going anywhere fast. I was upset about missing the bottom as far as interest rates go and now they are falling right back into the range I was hoping. Four more months and then I can apply for my re-fi. Like you though, I am extremely leery right now.