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Lender reporting mortgage activity 2 1/2 years post-Chapter 7 discharge

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    Lender reporting mortgage activity 2 1/2 years post-Chapter 7 discharge

    We filed and were discharged under chapter 7 almost 2 1/2 years ago. Mortgage was not reaffirmed but I kept the house. It was initially reported as "closed, included in bankruptcy" and all subsequent payments were not reported any longer. I received notice on Friday that my mortgage lender had re-added the mortgage to our credit reports. The information is correct and it appears they are reporting all payment activity on the account post-discharge. All payments have been on-time and the loan is current so it actually has given me a 28 point credit score jump according to MyFico. The only thing that is troublesome is the fact that the comment says "debt reaffirmed". We didn't reaffirm. In fact, when we asked, our attorney indicated that our particular BK court frowned heavily upon reaffirmation of primary mortgage and it wasn't needed. We were never late on the mortgage before filing and have never been late post-discharge.

    My question: since the payment history is positive, we owe less than $60k on the house that now has a market value more than 6x that, and the payment history is being reported accurately, do I care that it is being reported as being reaffirmed? From what I can find online, it only matters about the reaffirmation if we default on the loan. I am thinking even if that were to happen, which hopefully it won't, we could still refer back to the original filing and discharge showing the mortgage was not reaffirmed.

    Or do I go ahead and dispute the reporting to have it removed from the credit bureaus and take the hit on our scores when it is removed? I assume I can start with the lender, dispute with the credit agencies, and then get the attorney involved who represented us if they fail to respond, but having the mortgage listed seems to be benefiting us. Our true FICO score with the mortgage reporting bump is now 790 for me and 776 for my wife.

    Thanks in advance for any insight and sorry for such a long post.‚Äč

    #2
    My thoughts and from my experience... never poke a sleeping bear. I would not touch it at all. Now, if you had said that they were reporting missed payments and it was otherwise being reported "negatively" then I would jump all over them. But, here, that's not the case. They are accurately reporting and it has certainly improved your score.

    As the saying goes, don't look a gift horse in the mouth.

    (My story was that my Jareds card survived the bankruptcy somehow. Never closed. I used it sparingly, but thought "hey justbroke, let's get a credit limit increase!" Yeah, that caused the account to close due to bankruptcy. If I hadn't poked the (Jared's) sleeping bear, I would probably still have the $10K account today.)
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      I agree with justbroke, don't poke that bear. Looked at from a different perspective, I seriously doubt the "reaffirmed" notation is impacting your scores by even a point.
      Latent car nut.

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