Experian key derogatory 3 years later, plz help

[Anonymous]

Hello, long time lurker 1st time poster. I know many incidents are on a case by case basis and there are many factors that play into a fico score. However, searching for hours I could not find any info to help with my questions. So here it goes. Basically I have a foreclosure (RF) on a first mortgage and a charge off on the second mortgage (Both loans were for purchase loan money only) in California. Im not complaining about the forclosure, although negative in nature, it is accurate. Different incidents ultimately led to the foreclosure that I will not bore you with but in the end the home was forclosed upon. According to my Experian report, the first late payment on the 1st loan was recorded in Nov 2007 as 30. Which obviously led to 60, 90, etc.... with the last recorded RF in Sept 2008. The second mortgage was charged off with the first 30 in Nov 2007 and the last KD in Jul of 2008. Again, Im not fighting the foreclosure. Figured I would just make continual payments pay off credit cards and so forth and just deal with it. Which I did pretty well. The foreclosure dropped my FICO score about 75 points to about 650. Ok, I'll do what I got to do. Which I did well and was up to about 720 by mid 2010. Even qualified for an auto loan and RV loan from my credit union with the best rates possible. I thought OK, nowhere to go but up. Well, I recently pulled my yearly credit report to ensure everything was accurate and I see negative information from Litton Loan Servicing from a real estate loan. I assumed it was a collection agency for the 2nd mortgage due to the date opened of that account as the same as my original 1st and 2nd mortgage on 12/1/2004. My experian report shows KD for Sept 2010. Then ND from Oct 2010 to May 2011. Then a KD for June 2011. This entry dropped my FICO score about 50 points to a 677. Heres the info:

Account name: bank of america Account type: conventional real estate loan including purchase money first Date opened: 12/1/2004 account status: closed payment status: account transferred to another office Comments: transferred to another lender or claim purchased

2007. 2008
Sep Oct Nov Dec Jan Feb Mar apr may jun jul aug sep oct
ok. ok. 30 60. 90 RF RF RF RF RF RF RF RF OK

ACCOUNT NAME: bank of america account type: second mortgage date opened: 12/1/2004 account status: closed payment status: account transferred to another office Comments: transferred to another lender or claim purchased

2007. 2008
sep oct nov dec jan feb mar apr may jun jul aug
ok ok 30 60 90 120 12 120. KD KD KD ok

Account Name: Litton Loan Servicing Account type: Real Estate Specific Type Unknown Date opened: 12/1/2004 Account Status: Closed Payment Status: Charge-off

2010. 2011
Sep oct nov dec jan feb mar apr may. jun
KD. ND ND ND ND ND ND ND ND. KD


Now a few questions regarding above. Is it legal to apply this information roughly 3 years after the fact of the original 1st and second foreclosure? What options or on what grounds, if any, do I have to dispute the Litton Loan Servicing information? And lastly, I know the foreclosure and negative information will fall off after 7 years. Does the Litton Loan Servicing information basically re-age the original foreclosure to Sept 2010 as opposed to the original one in Nov 2007? Or will the Litton Loan Servicing information fall off when the original foreclosure does in Nov 2007? Sorry for the long post but I am in need of some help. Thank you very much and this board has been very informative.

[llecs]

Welcome!

If your score came from the same source as your report, then know that it isn't a FICO. I bring that up because your FICO can easily be much higher or lower than that FAKO. If a FAKO decreases, then it doesn't mean FICO would do the same.

Even after a foreclosure or charge-off, lates can still be added. They be added up to the point the account is paid off or sold. In the case of a foreclosure, the lates can continue up to the point the house is resold. Make sure there aren't any lates added if the house has been sold, assuming that it has been sold.

Re-aging is illegal. It happens when the DOFD changes. DOFD is the date you first went late and never recovered. I don't see anything in your post indicating that DOFD changed. Your TU and EX reports won't list DOFD but will list a drop off date (if pulled directly from the CRAs) and EQ does report a DOFD.

[Anonymous]

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@Anonymous wrote:
Now a few questions regarding above. Is it legal to apply this information roughly 3 years after the fact of the original 1st and second foreclosure? What options or on what grounds, if any, do I have to dispute the Litton Loan Servicing information? And lastly, I know the foreclosure and negative information will fall off after 7 years. Does the Litton Loan Servicing information basically re-age the original foreclosure to Sept 2010 as opposed to the original one in Nov 2007? Or will the Litton Loan Servicing information fall off when the original foreclosure does in Nov 2007? Sorry for the long post but I am in need of some help. Thank you very much and this board has been very informative.

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It is not illegal to add this to your report 3 years later.  A company is only required to report accurately.  There is no time limit to begin reporting.  I don't know if you have any grounds to dispute if you think they are collecting on a legitimate debt.  With a debt, the original creditor can report and any collection agency collecting on it or that bought it can also report.  It sucks, but this can lead to multiple trade lines on the same debt.

The good news, however, is that this should not re-age the debt.  If you got your credit report straight from Experian, there should be an estimated date of removal for the item.  Make sure it is within 7.5 years of when you first went delinquent on your mortgage.  When the CA reports the date, they are required to use the same DOFD as the original debt.  Just because the account shows as opened in 2010, the DOFD should still be 2007, but you need to double check.  If you got this report from a third party, you should pull your report straight from Experian by buying it or using your free annual report at annualcreditreport.com.

I might also recommend checking your EQ and TU reports so you can make sure everything is accurate on all 3.  Good luck.

[atarvuzdar]

Just an FYI, Litton is a mortgage servicing company that was bought by Ocwen in the early Fall of 2011, it is not a collection agency. Just wanted to throw that out there.

[Anonymous]

Thank you for the replies. The above credit information was taking from experian directly.
However, it was from experian online as opposed to the mailed hard copy. I hear it is better
to pull the mail hard copy as opposed to online copies. The fico score above was only pulled
from experian online. My next step is to check EQ and TU. And thank you for the info regarding
Litton. I don't understand then. I initially thought they were a collection agency but I was never
contacted by them regarding any information. I did a little research online and yes they are a
loan business as opposed to debt collection. Then why would they post info on my credit. Is it
because b of a sold them my loan? A little more researching I have seen mixed information
regarding the key derogatory status. I have seen people say the KD in itself does not effect your
fico score while others say it does. And that the KD just flags a prior deficiency such as my
foreclosure and should not effect my fico score in itself. That's what I don't understand. The Litton
Loan Service entry shows no late payments. Just a KD, 6 months of no data (ND), then a KD again. Again
thanks for all the replies and informationto for this newb. Been reading alot and trying to grasp all the info

[Anonymous]

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@Anonymous wrote:
Thank you for the replies. The above credit information was taking from experian directly.
However, it was from experian online as opposed to the mailed hard copy. I hear it is better
to pull the mail hard copy as opposed to online copies. The fico score above was only pulled
from experian online. My next step is to check EQ and TU. And thank you for the info regarding
Litton. I don't understand then. I initially thought they were a collection agency but I was never
contacted by them regarding any information. I did a little research online and yes they are a
loan business as opposed to debt collection. Then why would they post info on my credit. Is it
because b of a sold them my loan? A little more researching I have seen mixed information
regarding the key derogatory status. I have seen people say the KD in itself does not effect your
fico score while others say it does. And that the KD just flags a prior deficiency such as my
foreclosure and should not effect my fico score in itself. That's what I don't understand. The Litton
Loan Service entry shows no late payments. Just a KD, 6 months of no data (ND), then a KD again. Again
thanks for all the replies and informationto for this newb. Been reading alot and trying to grasp all the info

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Mailed copy shouldn't be any different online.  If you still have access to it online, go to the "Print report" option.  I always take those and save it as a PDF.  That print version looks exactly the same as the one that you would get mailed.

[llecs]

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@Anonymous wrote:
Thank you for the replies. The above credit information was taking from experian directly.
However, it was from experian online as opposed to the mailed hard copy. I hear it is better
to pull the mail hard copy as opposed to online copies. The fico score above was only pulled
from experian online. My next step is to check EQ and TU. And thank you for the info regarding
Litton. I don't understand then. I initially thought they were a collection agency but I was never
contacted by them regarding any information. I did a little research online and yes they are a
loan business as opposed to debt collection. Then why would they post info on my credit. Is it
because b of a sold them my loan? A little more researching I have seen mixed information
regarding the key derogatory status. I have seen people say the KD in itself does not effect your
fico score while others say it does. And that the KD just flags a prior deficiency such as my
foreclosure and should not effect my fico score in itself. That's what I don't understand. The Litton
Loan Service entry shows no late payments. Just a KD, 6 months of no data (ND), then a KD again. Again
thanks for all the replies and informationto for this newb. Been reading alot and trying to grasp all the info

---

The score from Experian isn't a FICO score.

Their reporting was likely due to the sale.

If the debt was bad or unpaid during that period of no data, then it should have reported lates there instead. In terms of FICO scoring, FICO will ding in some cases where a baddie updated. There's not enough info posted to determine that here though.

[Anonymous]

Yea understandable, the foreclosure is accurate. Im not denying that, just that the Litton Loan service updated 3 years after the fact.  So on my experian credit report, it shows a negative in the last year and half as opposed to almost 5 years ago.  Which obviously effects my Fico score. 

Im more so pissed off because I have no idea who or what Litton was in the beginning. I never recieved any information from them saying they took over my mortgage loan or anything. (Thats even if they really did).  I originally thought it was an error on my credit report which it might be but im not sure.  The only tie that I observed from the Litton entry to my original mortgage loan was that the Litton entry had the same start date as my original mortgage loans.

Is it possible to dispute the entry on the grounds that I was never notified they took over the loan or that I never agreed or signed anything from Litton themselves?  The foreclosure 7 year time is coming up in about  2 years.  Would it be worth it to dispute the Litton entry or would I be better off letting the foreclosure reach its 7 year mark?

[IOBA]

I have questions about  this portion of the original post.

2010. 2011
Sep oct nov dec jan feb mar apr may. jun
KD. ND ND ND ND ND ND ND ND. KD

1.  Who reported the KD (key degrotory)?   Was it the CB or Litton?

2.  Why would there be a gap between Sept KD and Jun KD?   Did Litton just forget to update during that time period or was it the CB just didn't update?

aidansdad1 - just trying to hijack your thread.  I just don't understand KD's...who reports them and why there are gaps in the KD status.   I have searched and searched and not found much on it at all on the net.   If someone(s) has information about KD's, it would help.

If you are not doing anything for the next few yrs, I'd say leave it alone.  But then again, I don't really understand KD's.  

I'd be upset about it reporting too.   Are you able to make payments to Litton?   Do you still have your original loan paper work from your lender? 

[Anonymous]

IOBA,

In regards to question 1, I believe it was Litton that posted the KD.  At least I assume because it was there entry.  For question 2, That is exactly my point, I have no idea why there would be a gap of ND between Sept KD and Jun KD. 

I do not understand the KD's as well and was hoping someone would chime in.  The status on the Litton entry shows closed with a charge-off.  I have not contacted Litton yet though because Im trying to understand my credit report before I call them to explain whats going on. 

In regards to the original loan paperwork, I originally obtained the 1st and 2nd loan from First Franklin Financial who went under.  I was notified that the loans were purchased by B of A.  So I went through the foreclosure process with B of A.  Completed, and the house was resold.  I figured I had blemish in 2007, and just dealt with it.  Paid credit cards on time, finished auto loans and scratched tooth and nail to get my fico score back to mid 700's.  Then the Litton entry happens and FICO score drops about 50 points.  The worse, is that my credit reports states potentially negative information within the last year as opposed to 5 years ago which really pisses me off cuz i felt that i dealt with the credit blemish then.  Suffered then fought back with payments and time only for this to happen recently.  No lates and no other negative entries other then the foreclosure.

In regards to doing something, I was hoping to lease a new BMW M3 within the next month or so and felt confident that there was enough time that had past (5 years ago) that the foreclosure would not effect me too much only to find this recent entry.  Now I know usually vehicle dealerships deal with the auto enhanced scores FICO which weighs heavily more so on auto loan installments.  I have 4 auto loans paid off satisfactorily with no lates whatsoever or no repos.  But I read that BMW FS do not want any major blemishes at least within the last two years, which obviously this Litton entry falls within.  I know there are other factors as well such as DTI ratio and montly gross income but just really pissed off about this recent entry since I worked so hard to get my credit back up