Lien strip reported as Settled for less

[dmc-2008]

I had a sucessful bk13 with a strip! I am 2 years out from discharge and its showing up in credit as Settled for less which is just as bad as foreclosure, cant get FHA loan refi!

how do I convince Chase to take that remark off thier report, its a mistake right?

thx so much you guys!

Im devastated after all this!

[sophieanne]

Hi...I don’t have an answer but hopefully someone else will. Except for the circumstance it’s nice to see you. I hope you are doing ok during these unusual times.

[dmc-2008]

Hi Sophieanne! Nice to see you. All else is going well but I am now in a subprime mortgage and thought I could refi into FHA after two years out from BK only to have this surprise me!

Its always something right! Thanks goodness you guys are all still here! Cant thank you enough!

My trusted tribe! Xo

[justbroke]

Sorry to read about this issue. My lender removed my second without my asking. As far as reporting, I don't know what's worse... "included in bankruptcy" or the settled for less. Both would indicate that the debt was never paid in full.

Convincing Chase is the right question. I'm sure you tried just disputing the entry, but have you called Chase's bankruptcy (homeowner's assistance) department and ask them to remove it?

I can't remember, were you in a 5 year Chapter 13? If it's a 5-year, then this should have fallen off at this 2 year mark. If it hasn't you should dispute online and by letter that this is 7-years old. You may also tell Chase that they are reporting beyond 7 years. (Some issue could come because of the partial payments throughout the Chapter 13 which kept resetting the clock.)

I hope everything else is going well.

[dmc-2008]

Hi just broke! So glad you are here! Yes 5 year bk, discharged two years ago. When mort broker ran my credit he said fha wont accept a report that states settled for less!

I did write Chase and they replied they have to report accurate info!


So I just sent another letter, this time I insisted it was inaccurate because it was a lien strip that was included in bk13 and I attached the lien strip approved order.

I hope that works! I hope that the resetting clock thing does not give them a leg!

There were 2 strips and the other one did not report at all!

Hopeing they will just remove it!

What do you think my chances are?!

Otherwise just 😥😥😥😥

Thx so
Much all! Hope you are well!

[justbroke]

Last ditch effort may be to also write the Credit Bureaus and send them a copy of the lien strip order and the filing date of the bankruptcy and tell them that the first major delinquency date should be the date of bankruptcy, and that it has been 7 years since that date. You may also want to contact maybe the executive office at Chase and plead your case.

[dmc-2008]

Ok I think thats a great idea! They have to respond in 30 days I think! JB do you know if it is a neg mark against bank if Bureaus have to remove it? I guess what I am asking is if chase doesnt, would letting them know the bureaus are my nexy move, is that leverage or ???

Otherwise I am gonna write back everytime I get neg response and just hope the sqeaky wheel theory works! Lol

[dmc-2008]

When writing all three bureous, can I send them all the same letter with attachments?

what happens is one removes item from report but not all 3 decide to remove it?

Or is there one head address?

thanks so much!

[justbroke]

You would send to all three bureaus. It can be the same generic letter. You may, in fact, have to deal with one removing an item and another not removing an item. It doesn't always work cleanly, but you should exhaust all your options.

[dmc-2008]

Ok will do and will let you guys know how it goes. Thx so much!

crossed fingers!

[justbroke]

For Chase, I would demand rapid removal via eOscar (a real-time system for removing credit bureau information). If your mortgage lender is "sophisticated" they could then do a rapid re-score and you could have this all fixed in 24-48 hours. I would personally call the office of the president, or the executive office at Chase, to try to get a resolution. You never know!

Chase Home Finance LLC
Executive Office Ohio
1-888-310-7995
Fax: 1-866-831-8350

JP Morgan Chase & Co.
Attention: James S. Dimon (CEO)
Office of Secretary
270 Park Avenue, 39th Floor
New York, N.Y. 10017
1-212-270-6000
Fax: 1-212-270-1648

[dmc-2008]

Thank you so much, just read this! Waiting now for letter/reply to my written request. I will call this number this week! Fingers crossed!

[sophieanne]

My fingers are crossed for you too! Let us know.

[underh20]

I was able to refi 3 months after a chap 13 discharge into a VA loan. My stripped 2nd loan, held by Wells Fargo was noted as 'IIB' which is the same as 'settled for less'. Initially, the loan broker will not even entertain me, but I have to educate him on the difference between a chap 7 and 13. He eventually delivered the refi. I used Caliber Home Loans because they have a Fresh Start Program for folks who are credit challenged. Also, after lien strip, I have 30% equity which helped big time during refinancing. Banks generally wants homeowners to have skin in the game, the bigger the down-payment and/or equity, the less risk for them.

A quick search shows that you could refi an FHA loan as early as one year post chap 13 discharge. Maybe educate the broker or use a more proficient one?

Also, 2 years post discharge, after the bk reporting dropped off from my report, my FICO score went up by 55 points.

Wishing you the best of luck with the refi, it will happen, and keep us updated.