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After 13 discharge mortgage company reporting 40 months of late payments

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    After 13 discharge mortgage company reporting 40 months of late payments

    Hello everyone,

    We just received our Chapter 13 discharge in August. Our mortgage was included in the bankruptcy and the Trustee was paying it through the plan, we had no control over our payments. We had 3 months of arrears that the Trustee paid in full in February of 2021. Starting in March 2021, the mortgage company started reporting on time payments in our credit report, and was not listing anything for every month prior going back to the month we filed in 2016.

    Just last week, the mortgage company removed the "in bankruptcy" status from our account and put our current status to "current".

    However, they reported that we were 120 days late for 40 months in a row, the entire time that the arrears were due to them.

    This is course tanked our credit score, now showing we have only paid 13% of payments on time.

    We are planning on sending a good faith letter to the mortgage company. They are a smaller regional bank, and we are hoping that they would be willing to wipe those late payments from the report.

    Has anyone else experienced this with their mortgage company after discharge, and if so, have you been successful with negotiating with the mortgage company?

    I'm also wondering if this practice is legal, and if it's worth contacting our lawyer to act on our behalf. We already received the letter from our lawyer saying that the case is officially over and they are no longer representing us, so I'm assuming their will be charges to get them to intervene on our behalf, but I'm willing to pay.

    All advice is greatly appreciated. Thank you!

    I sent a Good Faith request to the mortgage company last week explaining to them that we are trying to rebuild our credit after our discharge and that we have made all payments to the Trustee on time over the length of our 5 year plan.

    They responded today stating that they will all late payments from our credit report for all bureaus that they report to going back to the date that we filed our 13. Equifax is already reporting that they have been removed, and now we only have 4 - 30 day lates from the beginning of 2016, and then on time payments showing for the remainder of the 5 year 13 plan through the current month. Our VantageScore jumped up 98 points after that change was made. I'll know how much that impacts the FICO scores when I get my next MyFico update on October 10th.


      Good luck it sounds promising. As for the Vantage scores, ignore them, they are next to worthless, but I will be very interested in hearing how your FICO scores responded.
      Latent car nut.


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