still have foreclosure on my credit report, but I sold the home!

[tiredofit]

just got a letter from roadloans stating that the reason I was turned down for an auto loan, was because of "foreclosure too recent".


The thing is, the home went into foreclosure proceedings, but was sold by me before the sheriff sale. The note was paid off and satisfied. I got a tax statemtn from the lender in the mail stating how much interest i paid for 2006.. that's all i got from them in terms of where the loan stood. The amount is what is expected for 8 months or so of payments,payments that were not made until i sold the home....

Will the foreclosure stay on my credit? Or is this an oversight? Shouldn't it say paid as agreed in my credit report? I thought it had to sell at the sheriff's sale for it to be considered a foreclosure?

thanks..

[HHM]

This is the big downside to foreclosure, it does not matter that the foreclosure was never completed, what gets reported is that a foreclosure was "started".

There is dispute about how, exactly, your foreclosure should be reported. A foreclosure gets reported in 2 ways. The first way...the Foreclosure is reported in the public records section of your credit report, and it this reporting of the foreclosure that will stay with you, it is the fact that the foreclosure was started that matters. The second way is in relation to the creditors account that was foreclosed. With regard to the specific account, the creditor should report a zero balance, they will probably report in the notes that the account went to foreclosure, but since you paid it off before the foreclosure was consummated, the payment status should report as paid as agreed.

In any event, you are screwed for the most part.

[tiredofit]

well i included the house in the bankruptcy. shouldn't it state "included in bankruptcy"? would that be better??


I paid all the fees for the foreclosure, to the tune of 2,000, so I don't know why it would matter, but who knows... seems like you can never win...

oh well.. at least i got a loan now...

:-)

at 9.5%

[HHM]

Jesus C***st, a mortgage at 9.5%, that is just nuts, no offense.

If you paid it off, how was it included in BK...when did you pay off of the note, and what chapter of BK did you file 7 or 13?

[tiredofit]

sorry, mayb e I was a tad unclear... the loan was a new car loan for 9.5%. Not a mortgage. That'll be next year probably....

the house was included in my bankruptcy proceedings from the start but, I was advised by my atty that I could sell it regardless before the foreclosure sale, which i did. My bankruptcy included the home, and was discharged end of august. The home was in foreclosure at that point and I got the notice around june.. I had filed bk chapter 7 in april. I had a last minute buyer show and it sold like 3 weeks before the foreclosure sale. October 25th, 2006. Should the foreclousre show on my credit report or should it not? To me, since it was included, it should show "IIB" but maybe because it's a public record type thing, maybe it will say foreclosure. LAst time I checked my report, it stated "foreclosure started", that was in november. I would htinkl once it is paid off by ME, it should not say anything like "foreclosed on" or whatever.... the roadloans letter stated "foreclosure too recent" which implies that the property was foreclosed upon. I would think a property isn't foreclosed on until it sells at the auction, but I can be wrong...


thanks.