Mortgage included in bankruptcy and Credit Report

[RickInMich]

Hi,

Our Countrywide mortgage continued to show as a current, paid on time account. That was fine up until March when we decided we weren't going to stay in the house. (I think anyway!)

Well, of course, now they are reporting us as 30 days late. But can they do that since it was included in bankruptcy?

I went ahead and am disputing it with all three bureaus to be included in bankruptcy, but that got me to thinking. Will doing that, in fact, lower our credit score since it will show we now have no debt whatsoever? I know that seems like a strange question, but I'm thinking that maybe showing no debt is somehow negative.

Anyone have any experience with that?

[HHM]

Big picture, I would rather have the mortgage IIB than show any late payments. From a lenders perspective, they can be more lenient with someone who hit hard financial times and had to surrender house, they are less lenient when they see that "late" payment on the mortgage account.

[CindyLou]

Looks like the problem was that they weren't ever reporting correctly since the BK. After your BK they should have stopped reporting except for IIB.

Good luck.