07-06-2013 10:31 AM
Back in 2009, we were left with little choice but to file CH7. It was a shameful time in my life. We're on track with re-building our credit and being more responsible. Anyway, our mortgage was not re-affirmed. Instead, we're doing a ride-through, or "stay and pay" where we continue to pay the mortgage and stay in the home.
Shortly after our discharge, we had a couple 30 day lates on the mortgage (I know, I know) due to job loss. Every payment since those two lates has been on time. Everything I've read indicates that once the discharge occurs, the bank should only be reporting it as "included in BK" and should not be reporting payment history, good or bad, to the bureaus. Well, they are reporting our payments every month, including those two lates. The bureaus are reporting them as "included in BK" but are also showing the payments still being made. I don't understand this.
So, I emailed the bank and asked them to correct it. Their response is that they're still reporting it because it remains active with the bank and payments are being made, and that "each credit repository should update their records according to their internal guidelines." They refuse to take action. I would prefer to not have the payment history reported and to have the lates that occurred after the discharge removed. Is my understanding of the law incorrect? I was told by my attorney back in '09 that they could not (by law) report anything on the mortgage, good or bad, after the discharge. Is this incorrect? Any guidance would be appreciated. These two lates are the main thing keeping my score under 700.
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