Question about item on credit report...

[mynameainttracy]

I recently got a 3 bureau copy of my credit report and Experian showed a couple of things that I didn't agree with so I disputed. The other 2 credit reports reported this the way I thought it should show up.

Here is what I found...
Our home had an 80/20 loan. Mid-way through our ch 13 we walked away and foreclosed. The house was sold. Both of these creditors were included in the bk papers but we didn't reaffirm anything.

The 80% loan holder showed acct open, $3600 or so in late payments. The dispute agreed to note acct as closed and remove that there was any late or overdue amt.
The 20% loan holder showed acct closed, $3600 or so in late payments. The dispute came back saying that the now overdue/late amount is $20,516. WHAT???

I just didn't feel that overdue amounts should be showing up on here because these were discharged in our plan. Does this matter at all or did I make things worse by inquiring?

[LadyInTheRed]

Were you current on payment on the date you filed BK? If so, there should be no delinquency reported. It should simply state that it was included in bankruptcy. If you were in default at the time you filed BK, it is appropriate for your reports to show that you were delinquent during the pre-filing period, but not for any period following your filing. Regardless of whether you were in default at the time you filed, the creditor should not report that there is currently any balance or overdue amount on a discharged debt.

ETA: Was your plan actually modified to surrender the home? If not, those mortgages may not have been discharged. Secured debt that is not paid off during the Chap 13 is not discharged unless your plan provides that the collateral be surrendered. There is no such thing as a reaffirmation in a Chap 13.

[tobee43]

Lady, does the term "surrender" in a 13 mean the same as in a 7; whereas when one "surrenders" the property it only is an indication on the debtors part that the creditor is available to retain the property but doesn't necessarily have to?

[LadyInTheRed]

Lady, does the term "surrender" in a 13 mean the same as in a 7; whereas when one "surrenders" the property it only is an indication on the debtors part that the creditor is available to retain the property but doesn't necessarily have to?

Yes, in a 13, if the debtor indicates "surrender" then the creditor does not have any obligation to repossess the collateral. But, if the plan pays anything to unsecured creditors, the secured creditor would be smart to foreclose so that they can file an unsecured claim for any deficiency.

[tobee43]

thanks! chapter 13's to me are still such an enigma and scary. i know that's simply not true, and they have worked very well for so many. you guys are always lien stripping or doing something so strange sounding to many of us that went 7.

[mynameainttracy]

Were you current on payment on the date you filed BK? If so, there should be no delinquency reported. It should simply state that it was included in bankruptcy. If you were in default at the time you filed BK, it is appropriate for your reports to show that you were delinquent during the pre-filing period, but not for any period following your filing. Regardless of whether you were in default at the time you filed, the creditor should not report that there is currently any balance or overdue amount on a discharged debt.

ETA: Was your plan actually modified to surrender the home? If not, those mortgages may not have been discharged. Secured debt that is not paid off during the Chap 13 is not discharged unless your plan provides that the collateral be surrendered. There is no such thing as a reaffirmation in a Chap 13.

Yes, we were current when we filed and continued to pay until we walked away almost 2 years into our plan. BUT, was our plan modified? I honestly have no idea. Everything was handled through our attorney and trustee.

The first mortgage definitely was discharged. I think SLS (the 2nd mortgage) was just taking the opportunity to be jerks. The loan is even noted to fall off our credit report in May of 2015. Either way, the house is sold, they are never getting a dime from us and it only appears this way on 1 of the 3 credit reports. The only way I will pursue this any further is if it somehow stops our home loan process.