Sorry if I may have asked this before. I did a check and think I haven't done so....have memory problem due to physical condition and medication. First--we were NEVER late with mortgage lenders #1 and #2. When we filed BK 13 and were keeping the house, we paid as usual, never missing a beat. However, due to my deteriorating health and other reasons (especially a house that was way upside down and no chance to refi) we decided to let it go and convert to BK 7, which was discharged 4/03. Lender #1 applied for and received relief from automatic stay; lender #2 didn't. However, the issue is this: immediately after the BK discharge, lender #1 has been reporting delinquencies every single month, the last bringing the amount to over $6000. Are they allowed to do this? We had made it very clear at the 341 meeting that we were giving up the house and thus were told to stop paying. House is now in the foreclosure process although there is a potential short sale buyer in the wings. Our BK lawyer is useless as he doesn't deal with anything after the discharge and I've gotten nowhere with trying to get help. I just need to know if reporting these delinquencies after a BK discharge is allowable. It's driving us nuts! Thanks in advance for any opinions and Happy Thanksgiving.
it should show up as 'included in BK.' Since it doesn't, I would first try calling them and making them change it. You could dispute it as 'included in BK' with the CRAs, but if you do, you're admitting the debt belongs to you. I'd first try to fix it with them and, that failing, I'd dispute it as 'not mine' with the CRAs.
That's what is so odd. It does show as "included in BK, Foreclosure initiated" yet since the BK discharge they are reporting a delinquency with each passing month. I don't get it. The other two lenders aren't doing it. I've been searching the message boards for anything similar but haven't come across anything like it at all. Thank you for your reply.
I've had two credit cards that were discharged in my ch7 reporting as 120+ late AND included in BK. It's aggrevating, but if they keep it up after your first note to them (OC), remind them about "willfull intent" and how the penalaties for reporting inaccurate data under that provision are much higher.
Different lenders report differently and some CRA's get it wrong, plain as that. Sometimes it is to one's benefit, as I have found out!
