09-04-2011 01:31 PM - edited 09-04-2011 01:35 PM
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!
09-04-2011 02:07 PM
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..
09-05-2011 08:23 AM
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.
09-05-2011 09:18 AM
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.
09-05-2011 10:25 AM - edited 09-05-2011 10:44 AM
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.
09-05-2011 10:37 AM - edited 09-05-2011 11:37 AM
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.
09-05-2011 12:55 PM
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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