Need some help with post BK7 Home Loan - Urgent

[JSD001]

I'm in a bind.  I just stumbled across this forum and am hoping you can help me.

Its been over 3 years since my BK.  I decided to try to get a home loan with the good interest rates.  We were pre-approved based on Credit Score/income, Debt to income ratio.

Now it turns out (after having a purchase agreement on a home) that 5 of the creditors are still reporting monthly the status of the discharged accounts as BK.  The underwriting system believes I have another pending bankruptcy because of this.  I have contacted the creditors and 2 of the 5 have corrected the issue, while the others state it matches their records.  If I dont have this resolved in the next 10 business days, I lose the house.  Not to mention the fact that interest rates are climbing as well.  All the other creditors stopped reporting the status of the account on a monthly basis.  I understand creditors can report closed accounts, but it should not prevent me from getting a home loan for 7 years, should it?  As it stands, no national lender can grant me a home loan with these accounts in this status as the system, which is used my almost all lenders, kicks it out.  It doesn't seem right that this should be an automatic no.

Please help.

JSD001

P.S.  I just pulled my experian and it doesnt provide the detail that the one my free credit report did.  My free credit report showed the field "last reported".  Anyway, it now appears that I have 4 new inquiries from my lender dated 7-1,8-16,8-29, and 9-12.  I think at least one is soft, but still, this is ridiculous.  My lender has been great, and offer superb rates and service.  But now I dont know...  but if its true they use the same national underwriting system, going elsewhere doesnt seem to be viable.

[shols44]

Don't take this the wrong way or coming off as judge but IMO you've made a huge mistake not completely going through underwriting before signing a PA. That being said, don't expect any of this to be resolved in 10 days so if that means losing the home be prepared for that.

So 3 creditors are updating your report monthly? What are they updating? Can you post here? If it is erroneous have you disputed with the CRAs? If so dispute directly with the OC. In your dispute state exactly what is wrong. Remind them of their obligation under the FRCA and let them know you will be filing a complaint with the state AG and the CFPB. While you're at it, file complaints with the CFPB and the Bbb.

I think you could get it fixed but likely 30-45 days minimum.

In the future request full underwriting Pre-purchase. This way you can be put through the wringer before you ever sign a contract. Good luck.

[shols44]

Don't take this the wrong way or coming off as judge but IMO you've made a huge mistake not completely going through underwriting before signing a PA. That being said, don't expect any of this to be resolved in 10 days so if that means losing the home be prepared for that.

So 3 creditors are updating your report monthly? What are they updating? Can you post here? If it is erroneous have you disputed with the CRAs? If so dispute directly with the OC. In your dispute state exactly what is wrong. Remind them of their obligation under the FRCA and let them know you will be filing a complaint with the state AG and the CFPB. While you're at it, file complaints with the CFPB and the Bbb.

I think you could get it fixed but likely 30-45 days minimum.

In the future request full underwriting Pre-purchase. This way you can be put through the wringer before you ever sign a contract. Goodluck

[JSD001]

Thats what I thought the pre-approval was for.  I specifically wanted and requested them to review my accounts in bankruptcy to ensure that I would not have had an issue.  According to my loan officer, she has not run into this situation in her 20 years of lending.  She checked to be sure all the accounts were closed and reported as discharged.  No one thought that the date reported would have caused it to kick back.

The issue seems strange to me.  All of my accounts state they were included in the bankruptcy, are closed, and have a 0 balance.  The details that I get from my free credit report only highlight one difference between the problem accounts and the accounts not causing an issue: that is the last reported date.  All of the accounts having issues have a last reported date of 8/2013.  All the rest have last reported dates around the time of my discharge.  

Its my understanding that the underwriting system was changed in 2009 and may be part of the problem.  Since this last reported date is less than 2 years, it kicks out the loan as ineligible because it appears to only have been 1 month since bankruptcy.  For example, Capital One reports the closed account every month as discharged in bankruptcy.  From what I can tell, the line item doesnt include the date of the bankruptcy, so I assume that the underwriting system concludes a new one is pending.

However, I'm starting to think that to correct this, creditors need to erase all of their reporting since my discharge.  From what I have read, they have the right to report it monthly.  I'm very confused. 

I appreciate the response.  I normally dont ask for so much support on a forum without first contributing in some way.  Hopefully discussion on this topic will help some here.  I'd be curious if anyone else has run into this issue as well.

Now, I already have a possible 3 hard pulls from the lender.  Another 30-45 days and then another perhaps...  This is a viscous circle that once the credit report is fixed, if it can be, my score has lowered significantly enough to effect the final approval.  

[shols44]

What are they reporting? They don't have the right to report ANY negative information after your BK.

[JSD001]

They are not reporting anything new, they just seem to be "refreshing" the status with the same thing every month.  Almost like they are confirming the status monthly.

[shols44]

And what does the status say?

[JSD001]

Here is an example from Transunion of one of the problem accounts...

This is all I see....  I'm not sure why its an issue, but I think it ties directly with the Date Updated.

USAASAVINGSBANK #xxxxxxxxxxxxx****

10750 MCDERMOTT FWY
FWY
SAN ANTONIO, TX 78288-1600 (800) 922-9092

Date Opened: Responsibility: Account Type: Loan Type:

07/14/2004 Individual Account Revolving Account CREDIT CARD

Balance: $0


Date Updated: 08/19/2013

Last Payment Made: 04/29/2009

 High Balance: $4,291 Credit Limit: $4,300

Pay Status: >Account Included in Bankruptcy<

Date Closed: 09/10/2009

Date Paid: 04/29/2009

[shols44]

In any case in addition to the CFPB and Bbb I mentioned earlier, I would send them a cease and decist letter reminding them negative reporting on a discharged debt is a violation of the permanent injunction of your discharge. Tell them you will reopen your case and seek sanctions against them for contempt. There is actually case law to back this up....I just can't remember it right now. I will pm or post it once I find it.

I think you will win but it won't be 10 days.

Regarding pre-approval per my experience, I jumped through all the underwriters hurdles and passed 1 month before I looked for homes. Essentially the mortgage loan was approved and only two things were remaining to make it official. A purchase agreement and an appraisal.

[JSD001]

And the same from equifax... I remember my Loan officer mentioning the date reviewed was a problem, its being reviewed every month...

USAA SAVINGS BANK

PO Box 33009
San Antonio, TX-782653009
 

Account Number:	XXXX	Status:	INCLUDED IN BANKRUPTCY
Account Owner:	Individual Account.	High Credit:
Type of Account	N/A	Credit Limit:
Term Duration:		Terms Frequency:
Date Opened:	07/14/2004	Balance:
Date Reported:	08/19/2013	Amount Past Due:
Date of Last Payment:		Actual Payment Amount:
Scheduled Payment Amount:		Date of Last Activity:	N/A
Date Major Delinquency First Reported:	03/2010	Months Reviewed:	99
Creditor Classification:		Activity Designator:	N/A
Charge Off Amount:		Deferred Payment Start Date:
Balloon Payment Amount:		Balloon Payment Date:
Date Closed:		Type of Loan:	Credit Card
Date of First Delinquency:	08/2009
Comments:	Bankruptcy chapter 7,  Bankruptcy discharged