cancel
Showing results for 
Search instead for 
Did you mean: 

Help: BOA reporting inaccurate information

tag
Anonymous
Not applicable

Help: BOA reporting inaccurate information

BOA is reporting a foreclosure on a mortgage loan that was discharged in a Chap. 7 Bankruptcy in 2004.  The original mortgage was issued by Countrywide in 2001. The mortgage was not reaffirmed, but they have flagged the account status as foreclosure.  I've faxed over my bankrupcty petition and discharge letter to them last week.  They've confirmed that they've recieved this informaiton and that they didn't have it on file before last week.  I'm guessing Countrywide didn't rely this vital information to them when BOA bought them out.  BOA had been reporting the loan as current on my CR,but there wasn't any activity or payments since may 2007.  I've recently applied for and was pre-approved for a new mortgage with a different lender.  They said that they would have BOA make the change and update my file with the discharge information.  BOA has come back not with the discharge information but a foreclosure status with no mention of the BK or discharge of the loan on my file and have reported this to the Credit Bureaus.

 

This situation completely derailed my closing which was set for tomorrow.  My lender will not officially approve me because of this foreclosure status eventhough they are aware of the bankruptcy & disharge of this old loan.  BOA is really screwing me.

 

Here's my question:

 

Should I contact the Credit bureaus and ask them to add the correct information i.e. discharge in BK? how can they continue to  report inaccurate information?  How can they list a foreclosure on a loan that was discharge in a Chap. 7 BK ?  Please help!

Message 1 of 10
9 REPLIES 9
ShanetheMortgageMan
Super Contributor

Re: Help: BOA reporting inaccurate information

In my opinion I think you'll have to work with Bank of America on this.  The mortgage being discharged in BK wouldn't show that it was or wasn't foreclosed, just that it was included, so it would work if you wanted to get the BK remarks added to the trade line but would not remove foreclosure remarks.

 

What happened with the home & mortgage after you filed BK?  Did it eventually go back to Countrywide, did you maintain on time payments for the mortgage and sell it on your own?

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 10
Anonymous
Not applicable

Re: Help: BOA reporting inaccurate information

I continued to make payments after the BK.  I didn't reaffirm the loan.  I walked away from the property in August 2007.  What I'm confused about is if the loan was discharge in 2004.  Then that information should be reflected in the trade line on my CR.  I had another property that was included in my BK which was later sold.  I didn't reaffirm this loan either.  Chase brought the balance to zero and last activity on may 2004 (when I filed my petition). 

 

This is how Countrywide and then BOA should have reported the loan but they haven't.  I want to know if the Credit Bureaus will correct the tradeline to reflect the discharged debt and bring the balance to zero.  I really to don't care at this point about what BOA does.  I want the Credit Bureaus to have the correct information in the tradeline because its accurate information that the debt was discharged on 2004.  It shouldn't matter what happened after that point in time because I'm no longer personal liable for debt after in was discharge.  Otherwise, what's the point of filing a chap. 7 BK?

Message 3 of 10
Anonymous
Not applicable

Re: Help: BOA reporting inaccurate information

You best bet is to send a letter to BOA telling them they are in voliation and owe you either $1K or change to the correct status ASAP.

 

With that yes it does matter after the discharge.  You will run into issues with underwriting I am going to bet even once they report correctly.  When did the property actually go to the bank or other buyer (as in out of your name)?

 

Tammy

Message 4 of 10
ShanetheMortgageMan
Super Contributor

Re: Help: BOA reporting inaccurate information

I think it should report as included in BK, however since you chose to keep making payments it should also have the payment history after the BK up until it was paid off, which sounds like it'd have on time payments until August of 07 and then late payments of the correct severity until the lender took back the home, and then a foreclosure remark on it when the mortgage was foreclosed upon.  Just my take on it; I am not an expert on BK credit.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 5 of 10
Anonymous
Not applicable

Re: Help: BOA reporting inaccurate information

The property was foreclosed on in 11/2007.  Almost 3 years ago.

Message 6 of 10
ShanetheMortgageMan
Super Contributor

Re: Help: BOA reporting inaccurate information

At the 3-year mark is when you'd start being eligible for FHA financing, VA only requires 2 years from foreclosure, but not sure if you were looking to buy again or just looking for help on how to get BOA to correct their reporting.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 7 of 10
Anonymous
Not applicable

Re: Help: BOA reporting inaccurate information

Shane, just curious.  Does the 3 year rule apply to the date you loose the home, or the date the bank re-sells the home.  I have heard of banks keeping homes off the market for a year or more and the 3 year rule being applied when the bank sells the home and closes out the foreclosure property in their books, title, etc.  I was always curious exaclty how that works.

Message 8 of 10
Anonymous
Not applicable

Re: Help: BOA reporting inaccurate information

Bottom line here is that if you continued to make payments after the BK and then walked away from the home, the BK has nothing to do with the foreclosure.  The BK cleared you slate at the time (2004), but then in 2007 you walked away and the home was then foreclosed on.  IN any case it probably would have come up in title search, but asking them to update the bk information made them research the account and realize there was a foreclosure.  And about nothing would be more damaging to you buying a home then having a BK and then 3 years later a forelcosure.  They are very strict about any late history post BK.

Message 9 of 10
ShanetheMortgageMan
Super Contributor

Re: Help: BOA reporting inaccurate information

mickie, it goes by the date the lender legally takes back the home.  Copy of the deed would evidence when that was.  If the lender doesn't think the home is marketable I've heard them not wanting to take back the home.  I have a friend who has a condo in Florida who hasn't made a payment in 2+ years and the lender still hasn't taken the home back.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 10 of 10
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.