QUESTION
Can a reaffirmed mortgage show as closed on credit report?
Asked on Feb 04th, 2014 on Bankruptcy - Colorado
More details to this question:
I reaffirmed my 2nd mortgage during a chapter 7 back in 2009. Signed the papers, reaffirmation was granted, etc. The lender was reporting all payments until March of 2011, when that credit union was bought out by another credit union. Once the buy-out occurred, my account shows as closed on my credit report, and says account transferred to another office. But the "new" credit union is not listed on my credit report, and it shows that I have 0 real estate accounts. This is false. Is my next move to contact the credit bureaus, the lender, etc.? Isn't this a violation of the bankruptcy law? Since I did reaffirm the mortgage? My understanding was that with the reaffirmation agreement, the bank had to report my payments. That this was probably the only pro for reaffirming. Am I wrong? Thank you!
6 ANSWERS
Contact the lender and the credit bureau. The reaffirmation agreement binds the assignee.
Answered on Feb 10th, 2014 at 7:08 AM
Bankruptcy Attorney serving Bloomfield Hills, MI
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Bredow Law PLC
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I do not believe that there has been a violation of bankruptcy law. The reaffirmation agreement you signed merely ensured that the debt would remain your personal obligation after the discharge. The bankruptcy code does not require a lender or it's successor to report your credit payment history with a credit reporting bureau. To my knowledge, a creditor is not required to report the debt. It may be that the new owner of your debt knows about the bankruptcy discharge but does not know about the reaffirmation agreement. If you wish them to continue tor report, call them, discuss the matter with their credit manager. You may file a dispute with the Credit Reporting Bureaus, and you may ask the Credit Reporting Bureaus to attach a one page memorandum that you draft that explains your side. Your first step is to contact the lender.
Answered on Feb 10th, 2014 at 7:08 AM
2 Awards
You need to contact the new lender and advise them they must report you on the credit report. Give them a copy of the reaffirmation agreement. They may not have it.
Answered on Feb 10th, 2014 at 7:07 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Sounds like an error, speak with the credit union you are currently paying to have it straightened out, and if that does not do it, hire an attorney to assist you.
Answered on Feb 10th, 2014 at 7:06 AM
No creditor has any legal obligation to report to the credit bureau. The only requirement is that any information that is reported be accurate. Your rights are set out under the Federal Fair Credit Reporting Act. If you believe information on your credit report is inaccurate, this law requires you to dispute it with each of the credit bureaus in writing,
Answered on Feb 10th, 2014 at 7:06 AM
Deborah F. Bowinski
You are correct. You keep asking the same questions. You probably need to contact the new lender and ask why they are not reporting. If they did not receive the reaffirmation agreement with the account then they may think they are complying with the law and not taking action on a discharged debt. It seems to me that you should begin with them.
Answered on Feb 10th, 2014 at 7:05 AM