Mortgage Lender and Credit Report

[Barracuda13]

Hello,

I am 8 months successfully discharged from a Chapter 13 (filed 3 years and 8 months ago). I applied online for a "preapproval" for Ford credit (in hopes I could get a new car). Well, a month later, a formal denial came in the mail, along with info for obtaining my credit report from Experian.

So, I logged into Experian for my free report and found that my mortgage company (Washington Mutual at the time of my BK, now Wells Fargo) had this in the "potentially negative" section:

Discharged through Bankruptcy Chapter 13/Never late.

And in the Account History part:

Debt included in Chapter 13 Bankruptcy on Apr 09, 2007


This stunned me because I have not been late on a payment in over 5 years!

So, I called them and spoke to someone in their bankruptcy dept. The guy I spoke too (who was very cocky) said: "Yes, we have to post that because you filed a bankruptcy"

I asked: "But I've been 2 month ahead in payments for over 5 years!"

He said, "Yes, but there was an amount discharged. $257"

I said, "Huh? My payments are $650. What was this $257 about?"

He said, "That was our legal fee. We need to protect ourselves since you filed bankruptcy. It gets rolled into your bankruptcy. Talk to your lawyer."

I said, "You've got to be kidding me. I worked so damn hard to keep my mortgage in good... no, GREAT standing, and you refuse to pull that notation off my credit report?"

His final reply: "There is a 'never late' notation on it. Good day." Click.

So... is this legal? I checked my BK court statement, and sure enough, there was a $257 payout to WaMu/Wells Fargo, which I don't recall ever showing up on the original plan. And the date is odd... 4/09/2007? I wonder if that's when WaMu changed my mortgage to Wells Fargo? Sheesh... I could've paid this had I known about it.

It's possible this slipped by me and I never noticed, but I am confused now. Should I go after my attorney, even though he is no longer retained since the BK was discharged 8 months ago?

Thanks for any info in advance!

-B'Cuda

[rrockinggramma]

I dont think there is anything you can do to change it. They are not reporting a negative payment history but the fact that you filed automatically includes the debt in the BK.

Did Ford deny because the BK is listed as 2007? I think you might be able to dispute that and get it changed to your actual filing date of your chapter 13 but I don't think you can get it removed.

(I just got a new used car and went through a credit union. My auto enhanced score must be zero with all the repos I have had in the past (they don't show on my credit report of course since they are all too old now but the auto finance companies keep score LOL)

[krielly]

Yes, dispute the date that WF is reporting.
Unfortunately, there's nothing you can do about them reporting your mortgage as IIB. Technically, unless you reaffirmed your mortgage, they can report it this way. If you wanted to walk away from your home tomorrow, you are free to do so with no strings attached. This is because of your BK and that's why IIB is accurate.

Regardless of what you were told about the couple hundred in legal fees, that is irrelevant. What's relevant is that you filed. Sorry

Are they reporting on time payments on your CR? I've had to contact them a couple of times to get them to report my payments. Things are fine for a while, and then drop off. I'm letting it rest for now until we get our discharge in another year or so.