QUESTION
What can I do if the mortgage company is not reporting payments to credit bureaus after buy-out?
Asked on Jan 30th, 2014 on Bankruptcy - Michigan
More details to this question:
My husband and I filed chapter 7 and it was discharged in 2009. We tried to reaffirm both mortgages, however, only the second ended up being reaffirmed (NOT good for us). Our payments were being reported monthly to the 3 credit bureaus. We have never been late or missed a payment on either mortgage. In 2011, the original lender...AB credit union, was bought out by another credit union called Heritage credit union. On my Experian credit report, it shows the AB credit union mortgage as closed! Then states..."account transferred to another office". But my credit report shows that I have zero real estate accounts. One person said to sue Heritage. But I have also read that I have to go through a proper process of trying to get Heritage to report first, and if they fail to fix it then a lawsuit could be done. My REAL goal here is to get credit for the years of payments we have made. Any opinions on the best way to handle this? Also, because our first was somehow not reaffirmed as we had wanted, is that supposed to show up as closed on my credit report? And does it stay key derogatory for 10 years? Thank you!
4 ANSWERS
I must see this question five times a day. All the mortgage lenders do this because they believe reporting a late payment might be interpreted as an attempt to collect a debt in violation of your bankruptcy discharge. You can't have your cake & eat it too. This is just part of the price you pay for having filed bankruptcy. If you want to get credit for making your mortgage payments on time, order a copy of your account history & show it to anyone you are applying for credit with. Frame it on the wall, or put it up on the refrigerator with magnets if it makes you feel better. But making your mortgage payments on time is only a small overall part of your credit report. There is a lot of information available to show folks how to rebuild their credit after bankruptcy. Obsessing about your mortgage not reporting isn't part of that process.
Answered on Feb 04th, 2014 at 8:42 AM
You need to reaffirm the debt for it to be reported.
Answered on Feb 04th, 2014 at 8:34 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Since you did not reaffirm your debt subject to the first mortgage lien, that debt was discharged in your bankruptcy and all that remains is the lien. As a result, you are not making payments on a debt. Instead, you are merely making payments to keep the lender from marshaling the lien and foreclosing on the property. From what I can gather from your post, your lender is doing the right thing in not reporting those payments.
Answered on Feb 04th, 2014 at 8:23 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Go to an attorney and provide the details. This can get complex and you could be throwing away your money.
Answered on Feb 04th, 2014 at 8:20 AM