A relative of mine went to a dealership to purchase a vehicle. Upon the approval to finance the vehicle, the finance manager informed us that the FICO score would be higher if the account was current. Right now, on the report the real estate account is listed as "included in bk" date of last activity in 97 with balance, credit line, high credit, etc all saying "NA". My question, can a real estate account be "included in bK' since a house is considered "secured" and cannot be paid 0 balance unlike a credit card account that can be forgiven to 0 balance in Ch7 bk. Also, should my relative dispute the tradeline to have the status and notation corrected, but Im afraid to bother because the entire acct might be deleted. Any advice?
What should it say ? DID he do BK 7 ? Please don't say this account is from Wa Mu ! If it's supposed to be negative, it should be accurate at least, otherwise I don't see why he'd mind having it deleted ??? Otherwise, if it should be positive in truth, I see what you mean about fear of deletion.
If your relative had a chapther 7 BK and did not reaffirm the contract on the home then his home is being reported correctly on his reports. In a 7 BK the real estate contract becomes null and void. However if your realative was current at the time of the filing and remains current normally the loan will not be foreclosed on. The lender can not report it any other way as technically the debt no longer exsits as the contract no longer exsits. That is the down side for not reaffirming the contract. Many people chose not to reaffirm because if at a later date they have further finacial difficulties they can notify the lender they no longer want the home and can walk away free and clear from the lender being able to sue them for any defiancies between the loan amount and what the home sales for. rdb
I know the family member filed bkch7. R, thanks for your input. That makes sense about the reaffirming procedure. I will check to see if the house was reaffirming debt.
"FEAR OF REMOVAL" My AMEX BLUE is gone from EXPERIAN because I disputed the credit limit of N/A needs to be changed to $15,500!!! DON'T FIX IT...JUST REMOVE IT It has been over one year and I assume it will NEVER return...
