Discussion in 'Credit Talk' started by gabbygabby, Oct 26, 2015.

  1. gabbygabby

    gabbygabby New Member

    I'm trying to see if I'm on the right path or if I am completely way off base. I have a foreclosure on my credit report. 2 of the 3 credit agencies are reporting it.

    The house was bought September 2007. I honestly do not remember when I moved out or when I started getting letters about having to move out of the house. Both credit reports say the last payment was made 8/2010, but I would have thought the last payment was way before then. That information may be right, but I just have no idea and do not have any of the paperwork.

    So, TU and EQ are both reporting that the pay status is 120 days past due with a balance of $0. There are two loans - 76,302 (FHA Real Estate Mortgage) and $3,279 (second mortgage). TU says "foreclosure initiated" and "foreclosure collateral sold". EQ has the same thing, but only their comments say "foreclosure process started, fixed rate" for both mortgages.
    The house foreclosed and was sold to someone else.

    Are the credit agencies reporting the wrong information since it still looks like the foreclosure hasn't started yet?
  2. jam237

    jam237 Well-Known Member

    First, it's hard to know just by a textual description of the reporting what may or may not be complete, accurate and verifiable.

    Case law has some interesting hints though; whether the case that pops into my head is directly relevant in your case I wouldn't know. And of course, standard disclaimer applies, I am not an attorney, I do not play one on TV, I am not providing legal advice.

    You can find the thread talking about the case here.

    Krajewski v American Honda Finance Corp, et al. asked the question; When is a repossession not a repossession?

    American Honda was reporting that their car, which had an impeccable payment history, was repossessed. According to American Honda, it was repossessed, because a friend of their dependent who was utilizing the car, was seized because of PA's controlled substance law. They viewed that as a violation of a lease clause that prohibits subjecting the property from seizure.

    However, the question is the least sophisticated consumer would view the notation of REPOSSESSION as a repossession for lack of payment. She repeatedly disputed the repossession notation, because it was not repossessed in a way that the least sophisticated consumer would read REPOSSESSION to mean.

    The disputes kept getting rubber stamped because in American Honda's view, it was repossessed, despite the fact that the plaintiff challenged both the repossession and the fact that no payments had ever been missed. The letter sent by American Honda complexed the situation more because it stated that the reason for repossession was failure to pay the installments due.

    The question in your situation is whether or not reporting that the process started is equal to saying that the process completed, and which one may or may not be more or less favorable for you, in both automated or manual reviews.
  3. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Hey gabbygabby, I'm wondering if you would come back and share with us if you learned any new information regarding the foreclosures on your credit reports. Did you end up disputing any of the information as inaccurate through the credit reporting agencies? And if so, what did you hear back?

    I look forward to hearing from and hopefully we can provide some more guidance from here on out.

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