06-12-2013 04:58 PM
There is a BofA CO for a Home Equity Loan. Date closed/CO was 8/31/2009. Property was foreclosed in 08/08 and the mortgage was PIF with proceeds from the sale. However, he has been paying automatic payments each month in the amount of $25 since 07/07. CR says date of last payment was 5/2/13 of $0. They update each month with an increasing balance. Also states there were 30,60,90, 120 day late payments. His history in his checking acct even shows he's paid by the 2nd each month since 07/07.
How does he even approach this with BofA? They are reporting inaccurately and simply taking his money for no reason.
06-12-2013 05:29 PM
They can add interest. Is it possible the interest/mo on the HELOC is higher than $25?
If the foreclosure sale price wasn't enough to cover the 2nd, then money would still be owed. Could you pay it off now if you had to?
06-12-2013 05:57 PM
Probably is more than the $25 each month. But why wouldn't they reflect payments each month in the report? They say he was past due since forever.
The amount is at $50k.....no way in helk we could pay close to that.
06-12-2013 07:36 PM
Even at an assumed current rate of 7% which was relatively low for a HELOC back then with a balance at $50k, your interest alone would be at $300/mo. They should have had you on a payment plan of much more than that. Paying $25/mo wouldn't drop the balance any and would show a balance now thousands higher compared to 2009.
If I had that the first thing I would be concerned about is being sued. In some states SOL will reset with a payment, but not in every state. I'd check with your state's laws to see if that can reset. So far you are 4 yrs into this and some SOLs expire at 4 yrs. Definitely look around to see if your are in the clear or not. If SOL is over, then there is nothing to worry about. They cannot sue but they can continue to report the way they do. If expired, you can get away with stopping payment. To get it off, you can always offer a PFD letter, but before doing that I'd save. Or wait until the 7-7.5 yrs drops. If SOL had not expired then definitely save now as fast as possible. If they do sue then at least you could offer a settlement to avoid a judgment.
06-12-2013 07:47 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.