Paid foreclosure

[ToddLipps]

I am working with an individual whose mortgage on their credit bureau reports the following data:  Account closed by consumer 10/09; Paid Foreclosure; Account closed at consumers request.  Account paid.

A notice of default was issued, but brought the account current prior to close and executed a sale of the home (paid in full, not a short sale).  I am wondering since  there was no consummation / sherrifs sale/ title transfer, and the loan was brought current prior to the foreclosure if there is a possibility of having the bureau disputed and updated to remove the coding and words "paid foreclosure".  

The scores do not need to improve ( 750 middle) as this is the only derogatory item in the bureau. 

[pizzadude]

I'm not understanding, are you saying that this person has a 750 FICO score with a foreclosure reporting ?

[ToddLipps]

Yes actually 743 mid.  Double checked the scores, actually 741, 743, and 754.  Last late payment was 08/2009.  No public records.

[MarineVietVet]

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@ToddLipps wrote:

Yes actually 743 mid.  Double checked the scores, actually 741, 743, and 754.  Last late payment was 08/2009.  No public records.

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And these are lender pulled?

[ToddLipps]

Yes.

[pizzadude]

If these are actual FICO scores, I don't really see that there is a problem.   I have to say I'm very suprised that the scores could be this high with a recent forclosure.   

Are you certain that the account is reporting negatively at all ?

[FrugalRican]

I was going to ask something similar, pizzadude.

Maybe by some kind of error, this tradeline says those comments but is reporting positively.

Either that or everything else this person has is in "high achiever" status and this is just THE one thing on his report.

Still 750 is quite high for a recent foreclosure.

Maybe it really isn't listed in the Negatives.

[pizzadude]

Yep, that is what I'm thinking as well, Frugal.

It sounds to me like although the comments mention "foreclosure", it is being ignored as a negative.    Again, that is based on the assumption that the scores being posted are indeed FICO scores.

[ToddLipps]

As a mortgage loan officer with 10 yrs in, I was shocked to see the scores this high.  However this the bureau is filled with a good number of high credit lines rated 99+ months.  The mortgage history again is the only bad.

The underwriting system smart enough to pick up the foreclosure since it comes back as a "referred" loan (referred to underwriting, not approved). 

I appreciate the input!

754	Repository  TransUnion	Brand  Classic 04	Type  FICO	SSN	Customer name	BU1
039 - Serious delinquency     018 - Number of accounts with delinquency     008 - Too many inquiries last 12 months     013 - Time since delinquency is too recent or unknown
FACTA: Inquiries impacted the credit score.

743	Repository  Equifax	Brand  BEACON 5	Type  FICO	SSN		BQ1
39 - Serious delinquency     18 - Number of accounts with delinquency     08 - Too many inquiries last 12 months     12 - Length of time revolving accounts have been established

741	Repository  Experian	Brand  Fair Isaac V2	Type  FICO	SSN		BX1
39 - Serious delinquency     02 - Level of delinquency on accounts     32 - Lack of recent installment loan information     08 - Too many inquiries last 12 months

Bank of America	Opened  10/05	Reported  10/09	High balance  218,000	Reviewed  46 mos	30 3 08/09 07/09 02/09	60 1 03/09	90+ 2 04/09	Pastdue   -0-	Payment   Paid	Balance   -0-
Last active  10/09	*BX1 *BU1 *BQ1 [Ind]	High limit  ---	Install (I1)  Mortgage (CNV)
Account closed by consumer 10/09; Paid Foreclosure; Account closed at consumers request; Account paid

Refer/Eligible

5 This loan case file has been referred because a foreclosure was indicated on the credit report.

[HoldingOntoHope]

BofA is a tough nut to crack going by the experience of members on this board. Even if you were to get the foreclosure comment removed the multiple 30, 60 and 90 days are going to remain and I believe that is where the serious delinquency comment is coming from. I am no expert or even novice in the foreclosure process so I don't know if the notice of default is enough to keep the foreclosure comment alive.

Perhaps you could post the question or ask a mod to move it to the mortgage forum I know you are a loan officer but there are a couple there that might have an answer. And a dispute to the bureau is likely to come back verified and just add a dispute comment to the picture.

RobertEG is the resident expert on the direct dispute process (disputing the info to BofA instead of the bureaus. Either hope he chimes in or PM him to have a look at this thread.