Discharged 2010 and mortgage company still reporting negative!!

[Overmylimit]

One of my mortgages is still reporting negative 180 past due each month. I just pulled a credit report and they have been doing this for over a year. The debt was discharged, but they sold the discharged debt to another company AFTER it was discharged and closed. What the heck...should I call that company? and how would I have them remove all the back months of reporting.

[HHM]

Was it 180 days past due when you filed BK?

You need to first dispute with the credit reporting agencies. If they are actually reporting late payments after the filing date of your BK, that is improper. If you were already 180 days late at the time of filing and the report still simply reflects that you were 180 days late at that time, that is okay.

Basically, the CR entry should be, $0 balance. Comment: Included in Bankruptcy, Payment History: there should be no tracking of payments after the filing date, but if there were late payments that pre-date the BK filing, they stay.

[Overmylimit]

Yes I am sure it was 180 past due when I filed however the debt was sold after the case was closed. The new company shows 180 days past due each month for the last year and they just reported again a few days ago. Since they bought the lien it shows a balance of 18k which the original debt that was discharged was 12k so they are adding late fees each month.

[Overmylimit]

Oh thats another thing; I know the lien can survive but can they keep adding fees to the original lien?

[HHM]

Oh thats another thing; I know the lien can survive but can they keep adding fees to the original lien?

Depends. The security interest will usually contain provisions independent of the note. But in general, interest can accrue. But any fee associated with the debt (late payment fees) should not accrue.

Send the purchaser your BK discharge.

[Overmylimit]

Sounds good I will try that. Thanks

[justbroke]

I agree that you should just send the discharge notice to the new creditor with a cover letter. In the cover letter, remind them that the debt is discharged and their continued reporting may be a violation of the permanent discharge injunction. I would demand that they "remove" the tradeline but they may just update it reflecting a $0 balance and IIB.