I'm trying to get a new job and in my credit background check, they discovered my foreclosure from 4 years ago that I had told them about and sent me an email stating they need the following: A statement addressing the two mortgage loan accounts that are currently 120 days past due - Credit report indicates that foreclosure has been initiated on one of these accounts. - Explanation should include what your plans are to bring them current. I got a mortgage with a loan company 7 years ago...2 loans actually with an 80/20. I never missed a payment for 3 years but then had to foreclose. But 4 years later the 80% loan trade line doesn't say foreclosed but "foreclosure initiated." The 20% loan doesn't say anything except for I'm over 120 days late for a $30k loan. What can I do here? This potential job is asking what I'm going to do to bring them current...but I'm not bringing them current, I foreclosed 4 years ago. How can I correct this on my credit report? Just so you know, the 80 loan is in deed foreclosed and the 20 loan (secondary) is not foreclosed and they still send me letters to pay. Both of these loans should drop off my report in 3 years but I want a job before then.
What kind of jobs are you applying for? I have never heard of an employer refusing to hire an otherwise qualified applicant because of an old debt that has never even gone to judgment, and frankly I am not sure that I'd even want to work for such a company. Why not respond by saying that you have surrendered the house, no longer live there, and cannot afford to pay anything towards this alleged debt? Perhaps the employer is just looking for an honest explanation, and doesn't really intend that you throw good money after bad trying to pay on this house that you no longer have.
I agree with BCOHEN. I think what they're looking for is a straightforward explanation, and I think that's what you should give them.
