Mortgage listed as "included in bk" but really wasn't...

[arielle]

Hi all,

I have a question as I'm disputing other inaccurate info. on my post-bk credit report. Our bk attorney listed the mortgage, and HELOC on our bk schedule (since they are creditors). My mortgage, which has never been late, etc. even during the bk, has been listed as being "included in chap.7" and lists a $0 balance. We still have a 250K balance & are paying $2000 per month (it shows no late payments so that part is correct).

Would it benefit me to correct the info, even though it shows up as a negative item? I'm concerned about the large balance owed affecting my credit scores more negatively than the current report shows.

What do you suggest?
Thanks so much!

[tinroofrusted]

If you didn't reaffirm, then technically, it IS included in Bankruptcy.....

[Roadrunner]

Did you reaffirm? All debts MUST be included in the bankruptcy. All debts are discharged, unless there are some that don't qualify for discharge (student loans, taxes, and such) unless you reaffirm them before the discharge.

[SinkingFast]

If you Reaffirmed, you'd know. The attny woulda had you sign paperwork.

Also, the Reaffirmations woulda been filed with the Court. If you can't find copies with your BK paperwork, you can always swing by the Court House and check what's filed in your case with the Clerk of the Court.

If your loans were indeed not reaffirmed as you had hoped, it's kind of a win-win for you in some respects.

You keep up the payments and you have a positive reporting tradeline in your Credit Report.

You get into some type of trouble where you can't keep up the payments, you can walk away from the house with no duty or responsibility for it. The debt has already been discharged. You could live there several months for free and save money, until you have to move prior to the Foreclosure auction.

[arielle]

Thanks for replies, but...

Hi all,
Thanks for your replies... I'm still confused We did not reaffirm any mortgage or HELOC loans. Since it shows a $0 balance, should I dispute the balance or leave it alone?
Thanks again,
Waiting for the case to be closed....

[aa06a47]

I asked my attorney at the 341 meeting today if I needed to reafirm my mortage, and she said no. I'm in a chapter 13, so don't know if that makes a difference.

I'm also having the same problem on my credit report. I did the challange thing, and the reply I got back was "investigated, remains the same". So, figure I'll wait until after the BK is confirmed and then start pestering them and / or my attorney.

[tinroofrusted]

Hi all,
Thanks for your replies... I'm still confused We did not reaffirm any mortgage or HELOC loans. Since it shows a $0 balance, should I dispute the balance or leave it alone?
Thanks again,
Waiting for the case to be closed....

Leave it alone... you're only wasting your time because now, technically, the debt isn't yours....

I would refi ASAP though to get that reporting positively again.....

[arielle]

thanks for the refi idea

Thanks for the refi idea - our current mortgage is at 7%, HELOC is 9%. Our FICOs are pretty sad - mid 500's. What rates have you all seen in that range?

Thanks for your time!

[robivi3]

Correct the other items in your report. Pay the Mortgage on time as usual and let maybe a year to year and a half go by. Then your scores should be in the sixes which is more favorable. You will only get an ARM. I got 6.9 on a 2/28 with low 600's. I will have to refinance in June of '07. In the 500's you are looking at significantly higher rates and most will not take you, that means lower scores due to inquiries, not good. In the mean time, you have your home. Every one can write down what they think but no matter what a friend or co-worker says they did you will only get an ARM for srveral years, unless you pay two to three points higher.

You could try and talk to the Mortgage Company. Also on your list of secured creditors does it say that it would be reaffirmed?

Oddly I just went to another post and MTG_BANKER_OH seems to back me up.

[arielle]

Thanks again

Thanks for your post - I think I'll just "let it be" for now & clean up the rest of the reports as you suggested. Great days ahead!

[SinkingFast]

Robivi gave you some excellent advice. You've got your home. As long as you stay current on the payments, you won't have a problem with the mortgage Lenders.

Another option for you, A "just in case you ever need it thought", if you get in a bind down the road and have to sell the house quick for some reason,.......

Short Sale.

Our Lender offered it, but never explained it. If they had explained how it worked we might have tried that instead of letting it go to Foreclosure.

If you need to sell quick for some reason, you can apply to your Lender for permission to sell for less than your principal balance. They'll tell you the docs you need to supply. Basically the previous year's income tax returns, latest pay stubs, a Sob story Hardship letter about why you can't afford the payments any more, and maybe some other stuff. It's kinda like applying for a mortgage in reverse.

If you have to bail quick, keep Short Sale tucked in the back of your mind. Short Sale won't have the negative appearance on your credit like Foreclosure or DIL would. Your Credit will show "Sold" with a deficit balance report. Your current mortgage has already been discharged so you don't have to worry about being tax liable for the difference. And it's a far better report to have showing than Foreclosure or DIL.

Good Luck with cleaning up your reports. Hope you get a great rate when you look at refi'ing down the road as well!!