Account Status

[Anonymous]

Hi.

I have a quesiton about the reporting of a home mortgage on my credit report. Long story short I was laid off, got behind in my payments, sold the house. This was four years ago. The account status on all three credit reports say the account is 120 days past due (it was prior to the sale of the home). Can I dispute this so that it shows current? Is a dispute worth my time? Will getting this corrected improve my credit score? Thanks.

[Jazzzy]

Hi and welcome to the forums.

The report says that the account or balance is 120 days past due? Not just that there was a payment that was 120 days past due? Those are two very different things.

If it says that it is currently 120 days past due, and the loan has been paid off, then that is incorrect reporting. Under those circumstances I would dispute and tell them that there is no longer a past due balance on the account.

You may still legitimately be left with a 120 day late payment, but it should show no balance due.

I can't speculate as to what that might do to your scoring. There are lots of moving parts to FICO scoring and a lot depends on what remains on your reports.

[Anonymous]

Thanks.

I spoke to a mortgage broker who advised me to not dispute it because my score would drop. I am not looking to purchase another home just yet but I am trying to improve my scores.

[ficonovice]

It's my belief that if it states that it's "currently" 120 days past due that it's significantly hurting

your score. If the account has been paid off (one way or the other), the "current" status should

reflect that it's paid and is a 0 balance.

An account can't be paid in full and currently be behind on any payments. A similar thing happened

to me a few years ago on an auto loan. It said paid in full (0 balance), but the current status was

30 days late. When it got updated correctly it was a 40-60 point increase in my scores.

Again, just my thought, but if your reports are saying it's "currently" 120 days late, that's a major derogatory

and it has to be hurting your scores.

I'd dispute it ASAP...

Good luck!

[Anonymous]

I had the same question but on a charged -off verizon account in which it  shows a $0 balance but current status says 120 days past due. I was told by somebody on here that if the payment was made after you were 120 days past due its okay for them to report it like this. So now im confused which is true, becuase it didn't make since to me either.

[ficonovice]

Charge offs may be different because technically the balance wasn't paid, it was charged off/written off by the creditor.

But logically, if you paid the account off and nothing is due, it's not possible for the account to be "currently" late. Sure they

can continue to list your negative history when the account was in fact late, but the "current" status, if paid, can't also be

listed as "currently" late.

I'm acting like I'm an expert, but only because it happened to me. With a "current" late payment scores will be affected

negatively...

[Anonymous]

This has been the same thing i have been saying as you...... but here was the response i got below......

03-31-2010 12:41 PM

If the account was paid after the CO, it is alright for them to report that way.

If the account was 120 days past due and is paid now it is ok to list the 120 days as worst delinquency.

FICO does not see the 120 days late, they see the Co.

FICO sees the WORST delinquency.  A CO is worse than 120 days late.  You are getting dinged for the CO, not the lates.

TU and EQ report in different ways but generally what they say is the same.

[Anonymous]

if the account status shows it as currently 120 days past due, underwriting will kic the loan back out becuase they can not approve a loan with recent mortgage lates.   If the loan shows paid in full, but having had 120 day late as most serious delinquency then it is reporting correctly.  Understand that 120 days late is considered a foreclosure and you will be held up to forclosure standards as far as underwriitng.  That means really clean present credit and if you are going conventional some of the banks are requiring 5 year wait.  Some I think are still 4 and FHA is 3 I believe (although individual lenders can have stricter standards then FHA minimums.

Good luck with it.

[Anonymous]

if the account status shows it as currently 120 days past due, underwriting will kic the loan back out becuase they can not approve a loan with recent mortgage lates.   If the loan shows paid in full, but having had 120 day late as most serious delinquency then it is reporting correctly.  Understand that 120 days late is considered a foreclosure and you will be held up to forclosure standards as far as underwriitng.  That means really clean present credit and if you are going conventional some of the banks are requiring 5 year wait.  Some I think are still 4 and FHA is 3 I believe (although individual lenders can have stricter standards then FHA minimums.

Good luck with it.

---

Thanks for the info. The mortgage did not go into foreclosure. The home was sold through the resale process of getting a realtor, strangers go through my home at will, negotiating final selling price, and closing (18 days after it was put on the market).

The entry on my credit reports say Current Status: 120+ days past due; Description: closed or paid/ zero balance.

I understand the 'Worst Delinquency' showing 120+ days past due, but the current status is what is upsetting me. I am not currently 120+ days past due.

I have decided to dispute it with all three credit reporting agencies. Since this issue occured (2006) I have had excellent payment history on the only credit that I have- student loans. 

[ficonovice]

If they update it correctly, I believe you'll be very pleased with the results..

Again, situations vary, but if the account wasn't charged off and if it has been paid in full, logically

it can't "currently" be late.

Good luck and let us know how it goes..