Mortgage Payments after Chapter 7

[melc68]

My wife and I filed chapter 7. we recieved our discharged papers. We have been paying our mortgage as agreed on time and no late payments since the first day until the present. The house eas not the reason for us filling BK. it was credit cards.

Our question is why is my mortgage company listing our mortgage as negative/delinquint in are credit report and its also listed as closed. We pay on time never late before and after BK.

[Ann]

melc,
If you never reaffirmed your mortgage it would have been discharged in your chapter 7 and closed. Very rarely are mortgages reported when you don't reaffirm. It is the norm for credit reporting companies to report as closed. All of your on time payments are not a benefit for your credit report but making those payments every month allows you to stay in your home after a chapter 7.

[btbeme]

Your mortgage has to be reported accurately on your credit report. If you were late or delinquent before filing BK, it can report those later. If you were on time, there should not be anything shown as "late."

If you did NOT reaffirm the mortgage, then the account should be shown as "IIB" - Included in Bankruptcy - with only a payment history prior to the filing. It will no longer be listed as an active account, since it is no longer your legal responsibility to pay (nor is it the legal responsibility for the bank to report payments).

If you DID reaffirm the mortgage, then the status should be current and will start to show a payment history again soon.

In either case, you should dispute incorrect info with the credit bureaus. As far as the bank reporting, you can ask them to do so, but don't expect them to do it unless you reaffirmed your mortgage.

How long ago was your discharge? Is your BK file listed as "closed?" It takes a month or two for this to settle out on your credit report.