Foreclosed mortgage.. How should it report?

[Tryon2improve]

I divorced my ex almost 5 years ago and she never re-financed the house. She did a foreclosure early last year. She tried a deed in leiu of foreclosure but it did not get finalized before the cut off they had. As part of her agreement with them in the deed in leiu of, my credit was supposed to be cleared back to the divorce date. Needless to say when that did not go through they just stopped reporting on my CR. Currently it shows open balance of 120k payment due $970 last reported 8/2010 (actual foreclosure month).

Should this not show a zero balance and no monthlynpayment? They have resold the house after the mortgage company bought it at auction.

I wrote a letter to the mortgage company and sent it CMRRR last Monday, requesting the deletion back to divorce date. I have pretty good grounds for removal, as they never served me papers (knowing I had moved and was divorced from her). I can make them buy back the house within the next 6 months and start the whole process again, I let them know I would revoke that right if they repair my credit report to the divorce date.

Any thoughts?? This is the big negative on my CR, the only other is a rehabbed student loan that is to be removed in a week or two.

EX FICO 537 11-09-2011
EX FICO 658 12-08-2011

[StartingOver10]

Your mortgage is not reporting correctly but not for the reason you think.

When you and your spouse signed for the mortgage it was a contract to repay the loan. When you divorced your spouse the PSA (Property Settlement Agreement) was/is between you and your now ex wife. The PSA states the disposition of the assets and  the PSA does not (can not) obligate a third party such as your mortgage lender to do something for you. Your ex can't make an agreement with you on behalf of the creditor(s). 

It sounds like your ex violated the PSA when she failed to refinance the house. Your recourse is against your ex, not against the lender.

Having said the above, your mortgage (yes, its still yours up to the foreclosure) is not reporting correctly because it is reporting a balance and a past due amount. Dispute first with the CRA's the reporting of the tradeline because it is not showing its accruate status, payments and dates. Then dispute with the OC if the CRA doesn't correct. Keep all of your records for the mortgage and the foreclosure as you will need to disclose and explain this foreclosure on any future mortgage applications. If you read the mortgage app it will ask if you ever had a foreclosure. See the app here https://www.efanniemae.com/sf/formsdocs/forms/1003.jsp