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Contributor
carolina98
Posts: 90
Registered: ‎11-12-2010

Sell home, remove Bk degrogatory acct from CR?

[ Edited ]

If I sell  my home and pay off the loan balance, will that remove my mortgage a derogatory BK account on my credit report (I have zero late payments)? It seems it would have to show paid in full, but would it still be a derogatory listing? Thanks!

Regular Contributor
scrubs
Posts: 230
Registered: ‎09-09-2009

Re: Sell home, remove Bk degrogatory acct from CR?

no it will not, because the you are not responible for the property they have an lien on the property.

Contributor
carolina98
Posts: 90
Registered: ‎11-12-2010

Re: Sell home, remove Bk degrogatory acct from CR?

I am currently making payments on the home. If I sell it and pay off the loan, how does the bank still have a lein on it? I was told by Bank of America I was free to sell the home and pay the loan off..



Regular Contributor
scrubs
Posts: 230
Registered: ‎09-09-2009

Re: Sell home, remove Bk degrogatory acct from CR?

bank has a lein on the property that all, because of your bk you can walk away and not look back. if you sell your home you must pay off the lein. cr will not change if you sell your house and pay off the loan, it will still show zero balance and included in bk.

New Member
carlson98
Posts: 3
Registered: ‎12-09-2010

Re: Sell home, remove Bk degrogatory acct from CR?

Won't the mortgage have to show paid in full because that would be the accurate statement?

Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010

Re: Sell home, remove Bk degrogatory acct from CR?

The mortgage already shows a zero balance.  You'll never get a "paid as agreed".  The advantage (aside from "doing the right thing") of satisfying the lien is to avoid a foreclosure since your BK which will set back the time to get another mortgage.

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
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Regular Contributor
scrubs
Posts: 230
Registered: ‎09-09-2009

Re: Sell home, remove Bk degrogatory acct from CR?

no, your cr will not changed,  once you bk your cr will not be changed ie update or making making monthly payments.

Contributor
carolina98
Posts: 90
Registered: ‎11-12-2010

Re: Sell home, remove Bk degrogatory acct from CR?

[ Edited ]

While I many not get "paid as agreed" (even though I have no late payments), it seems I could get "paid in full" if I pay off the loan. That the report would be updated for this accuracy. ?? I thought I read somewhere that if you pay off a loan after BK the record has to be updated to show that for it to be an accurate record, but maybe what I read was wrong.

 

I don't think I can be foreclosed on, can I, since I'm no longer legally responsible for the home that was IIB?  I guess if I stopped making payments the bank could force me out legally but it wouldn't affect my credit, is that right? This is not a scenario I plan on. I plan to continue to make payments and hopefully sell my home, though I may make little money off of it.

Contributor
carolina98
Posts: 90
Registered: ‎11-12-2010

Re: Sell home, remove Bk degrogatory acct from CR?

[ Edited ]

My mortgage is the only IIB creditor I have that shows my payment history on all credit bureaus. TU and EQ have my mortgage accounts (80/20- 2 accounts)  listed as degro accounts and show up-to-date history  (no lates.)

 

Experian has listed my primary mortgage under accounts of good standing, but listed my second mortgage under derog. Both show history  with no lates. My highest CR score is with Experian and I guess my mortgage under good accts is why. Not sure how it ended up under good accts but glad it did.

Regular Contributor
scrubs
Posts: 230
Registered: ‎09-09-2009

Re: Sell home, remove Bk degrogatory acct from CR?

as long you make payments and refirm the mortgage you should be ok.  check with your bk lawyer. i see friend of mind that bk and stay in their house 15 months without making any kind of payment. also most mortgage companies do not update, again check with your nortgage co that hold your lien  if they will update again most will not because you are not being held liable for the loan anymore.


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