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New Member
Posts: 1
Registered: ‎12-17-2012
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2nd Mortgage Still Reporting 5 Years After Foreclosure

Briefly, here is my situation.  Was in deep financial debt in 2007, had two mortgages at the time, my house was foreclosed upon.  Now 5+ years later I still get statements for 2nd mortgage form Ocwen with about $30,000 in past due fees. They keep reporting me month after month with 180 day lates.   Bearing in mind that the original note holder chatged this debt off several years ago, Ocwen bought the debt from them.  So now I am financially successful again, paid off all my debts, but cannot get any credit because of this delinquent mortgage.  This is the only black mark I have that is preventing me from rebuilding my credit so I can buy a house again.  I honestly thought that when my house was foreclosed upon that both the 1st lien holder and the 2nd lien holder were paid off upon sale of the home.  Well that didn't happen, only the first lender was paid.   Is there anything I can do?  Would an attorney be able to help?  I live in MN,

Community Leader
Epic Contributor
Posts: 29,589
Registered: ‎03-19-2007
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Re: 2nd Mortgage Still Reporting 5 Years After Foreclosure

They can report delinquency as long as the debt remains unsatisfied.  Any reporting of prior delinquency is not negated by the current or ultimate pament status of the debt... it is a past fact.

They can continue to report, in subsequent reporting, the prior delinquency, but cannot add a new delinquency unless you have a payment obligation with them.

The fact that the debt was charged off by the OC has no relevance to the consumer's continued obligation for the entire debt, and to the ability to report continued status to the CRAs.

If they purchased the debt when delinquent, they are a debt collector, not a creditor, and cannot add additional delinquencies.  They are not billing you and thus setting a due date upon which to base a new delinquency.

Is their reporting simply an update, or is it the actual reporting of a new delinquency?

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