Reaffirmed loan from 2005 never reported!

[johngubbio]

Hello All,


I am brand new here!

Found this site through a Google search, and felt I had to join to provide this information to assist others who may be in the same boat.


My Chapter 7 was discharged in December 2005. At the time, I reaffirmed my auto loan with my credit union - and have been on time, as well as ahead of time, since then to now, in all payments.

I finally subscribed to FCR Experian in June 2009, and then noticed that my auto loan was reported as "discharged in Chapter 7" and closed!


Knowing this to be an error - as I reaffirmed the loan, after contacting my credit union and the bankruptcy lawyer - - apparently the reaffirmation paperwork was never received by the court, in time, back in December 2005, so it was included in the Chapter 7 - instead of being properly reported for, as of now, four complete years of both on time and ahead of time payments.

Immediately, my credit union, Hudson Valley Federal Credit Union in Poughkeepsie, New York - - immediately offered me assistance to correct the error. Prior to this, I had applied for a $ 3,500.00 personal loan to pay off a few high interest credit cards - and was turned down because my FICO score was 605 and the Chapter 7 was on my report.

When the HVFCU began working with me on the credit report error - the guy that I was working with in the loan department "pushed my $ 3,500.00 loan through and approved it" ! THAT WAS GREAT - and was a boost to my credit report, getting a personal and unsecured loan just three and one-half years after bankruptcy.

I had to contact my bankruptcy lawyer - who dragged their feet a bit, but finally they notified the Court to reopen the case for the reaffirmed loan, as apparently that is what needs to be done to get the error corrected.

The HVFCU just sent all the paperwork to the three credut bureaus last week, and I should see the error corrected by the end of December!


In reality - - my FICO score is currently at 655 (not bad just four years after bankruptcy) and with the loan now properly being reported as Open, Current and ON TIME for the past four years, my score should jump to well over the 700 barrier!


Yes, the Chapter 7 on your report matters to a point, but if your score is high and you have nothing negative since the discharge - you should have no problem in getting anything from an auto loan to a mortgage, and at a realistic rate.

Hats off to the Hudson Valley Federal Credit Union!

If you live in the Hudson Valley area of New York - this is the one and only financial institution you need!

THEY ROCK!


When I get the final results of my FICO score, I will post it here!



Hope this information is valuable to all on this forum, and I am happy to be here!


MERRY CHRISTMAS
HAPPY HANNUKAH

[HHM]

No offense, but all that was a giant waste of time.

[Stilltheone]

LOL HHM, but I agree.

Why on Earth would you have fought a reaffirmation agreement be filed with the court 4 years later? Maybe I'm cynical b/c I actually signed a reaffirmation agreement that was filed with my court and I wished I hadn't.

If your car was already paid off, you should've forgotten about it and moved on.

[johngubbio]

Hey Stilltheone - you apparently missed what I stated in my post.... The reason why I pursued all of this was to effect an increase to my FICO score to well over 700. I am sure you would have done the same if you made four full years of both ahead of, as well as on-time payments and they were not properly reflected on your credit report because the account was reported as closed and included in Chapter 7. That would be an incorrect and serious error. My FICO score will be over 700 after just four years after Chapter 7,
that is pretty good timing!

[HHM]

Most peoples credit score gets over 700 after 2 years from BK anyway.

[Mi Bankruptcy]

I filed last NOV and discharged Marchof this year and my FICO is 633. I also qualified for an unsecured Capitol 1 credit card. I wanted one for Business travel after previously using my debit card and the hotel putting a hold on funds incase I make some charges.

[Michigan1951]

How much did it cost to turn this around? What a bummer.......

Maybe you assumed all was well after discharge as you quickly started out fresh.
This might be a lesson to all of us to check our reports out the gate after discharge to clear up such errors instead of finding this all out years later.

I think you did this for peace of mind. It is a personal choice. I can see why you still wanted to align the credit report with your 4 yrs of payments/reaff. Seems like lenders would look more favorably at your payments in a reaff than having them listed in the bk.

And, thanks for sharing as it sheds a light on what to do AFTER discharge or to follow through with monitoring the credit reports to fix errors right away.

Your post was a valuable lesson to those coming up the line here.