Please bare with me as I am new to this also.. I just did a free credit report.. we filed bankruptcy in 2005..I can't think of the chapter..but it was where we kept our house and our cars..cars are paid for but of course we still have a mortgage.. my question is when I went on to the report..where my mortgage company was listed it said: currently closed.. account status: closed.. and Payment Status: below is what it stated.. Debt included in or discharged through Bankruptcy Chapter 7, 11, or 12 I talked to someone today but they were of no help..and very rude.. We are paying for our house..so what does this mean..should I be alarmed by this? Also..what does KD mean? I am sorry I am so clueless..but I am just hopeing someone can explain this in terms that I can understand..and if this is something that I should be concerned about.. thank you for your time..it really is appreciated..
Are you still making a house payment?Kd means key derogatory.If what there saying is correct you don't owe them a dime.BUT you need to check your papers and your bk attorney with this.Without seeing it they wrote the mortage?
Did you file before October 15, 2005? Did you file a Chapter 7? At least under the old BK laws you could keep your house and cars under either a 7 or 13 in many cases. You are looking at a 3rd party credit report. You should get your reports directly from the bureaus. What it SOUNDS like, is that you didn't reaffirm the mortgage. If you didn't reaffirm (make a commitment to be "on the hook" for the balance so to speak), then they are precluded from reporting a balance, or any further payments because they are considered voluntary. But, it also means, if at any point you can't afford the mortgage, you can walk away and not owe them one penny more - no matter what the house ultimately sold for. If you ever fall behind on your mortgage, they can slam the foreclosure hammer down on you fast if they so choose. If you reaffirmed, then you have no further BK protections in regards to the mortgage, and they should report your balance, and continuing payment history, but, reporting is voluntary. If you don't pay, they can foreclose and hold you responsible for any deficiency balance. You need to check with the attorney who filed your BK and verify if you filed reaffirmation papers on the mortgage, cars, or any other secured transaction items. While it may or may not be important as far as credit reporting, its very important that you understand what you agreed (or didn't agree to) during the BK for future reference. Edited to answer your question - You shouldn't be alarmed by the credit reporting whether you reaffirmed or not - you will still eventually own your house if you pay for it.
We filed April 2005, Chapter 7..keeping our cars and our mortgage..We are still paying on our house..we didn't or don't want to lose our home.. I just left a msg., for my attorney, just to see for sure..but I am pretty sure we didn't sign the reaffirmation agreement. I think we were advised not to.. but I do understand what you wrote above if we didn't sign it they are not obligated to put any information on the report.. and when you mean late..even a couple of days could they still do foreclosesure or are you talking if you are 30 days late or something like that..I am just curious..This .. like I said just scares me a little..we pay our mortgage..on time sometimes they don't get it on the first and it post days later..I just wanted to double check..if you are telling me they would or could do this even if you are a couple of days late.. Again, thank you for helping..I TRUELY appreciate it and understand it so much more..and as to the one comment..explaining the KD..that was on there after the bankruptcy and we were never 30 days late.. Thanks again,
If you were never 30 day's late you need to dipute it,or write a good will letter to who's reporting it.If you can prove your were not 30 late they might take it off without disputing it.Most incoming letters should be timed stamped however alot of companies have got away from doing that so it;s harder to prove when it got there.
