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Established Member
Posts: 36
Registered: ‎12-24-2012
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2nd mortgage reporting on credit report as open but zero balance

I went thru a bk in 7-2010 and my 2nd mortgage that was IIB is still reporting on my credit report as open but shows a zero balance. Do i need to worry about this or should i just leave it alone since im at 2 years and 5 months since my bk discharge. My scores right now are 637, 645, and 674 lender pulled and im going to be buying a home in 7 or 8 months so i dont want to do anything to lower my scores. Thanks for any help

Established Member
Posts: 113
Registered: ‎12-04-2012
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Re: 2nd mortgage reporting on credit report as open but zero balance

The second mortgage is being reported as a negative tradeline, right? If so then it would pulling down your score and it would be a good idea to dispute the tradeline in writing along with documentary proof that the mortgage got discharged through BK.
Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
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Re: 2nd mortgage reporting on credit report as open but zero balance

The tradeline must report IIB, dated no later than your BK discharge.  By having it show open, if the creditor is still updating the reporting, it isn't aging and is hurting your score.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
Take the FICO Fitness Challenge
Established Member
Posts: 36
Registered: ‎12-24-2012
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Re: 2nd mortgage reporting on credit report as open but zero balance

ok thanks i just checked the report and it does say included in bankruptcy and has not reported since the bankruptcy discharge date. Do i need to worry that it still says open or should i just leave it since the creditor hasnt't updated the reporting since the discharge date.

Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
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Re: 2nd mortgage reporting on credit report as open but zero balance

That's the proper reporting.  There's not much more you can do about it, but the impact will continue to be less over time.

 

Your scores are compable to mine at that stage of my BK.  Have you looked at NACA to finance your mortgage?  In most cases they follow the two years from BK discharge, 3 years from deed transfer in foreclosure or short sale rules, but much better deal than FHA.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
Take the FICO Fitness Challenge
Established Member
Posts: 36
Registered: ‎12-24-2012
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Re: 2nd mortgage reporting on credit report as open but zero balance

ok thanks i appreciate the help. I havent looked at naca. Im looking at going usda because all the homes i want are in usda areas and my 3 yr foreclosure date will be in july so im just trying to get my scores up around 660.

Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
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Re: 2nd mortgage reporting on credit report as open but zero balance

USDA can be better than FHA.

 

NACA does 100% financing (no downpayment), with no closing costs and a great rate (currently 3%).  They aren't score driven but it will take you effort and patience to qualify because you need to document everything.  You can check their website to sign up for a workshop is is how you must start with them.  Start soon to buy in 7 or 8 months...

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
Take the FICO Fitness Challenge
Established Member
Posts: 36
Registered: ‎12-24-2012
0

Re: 2nd mortgage reporting on credit report as open but zero balance

ok thanks ill look into it. Thanks for all the info

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