Please help me. Foreclosure being reported incorrectly, I have disputed multiple times.

[mere2368]

I am at a loss and don't know what else to do.  I had an 80/20 mortgage that was foreclosed on in 2008.  The 80% portion is being reported correctly, but the 20% portion was apparently bought by a collection company (HOW?? If it was foreclosed???) Franklin Credit Management.  At first it was being reported as a collection.  I disputed that and now it is being reported as a conventional mortgage more than 120 past due.  It keeps getting updated and prolonging the drop off date and continuing to make my credit score go down.  I am so upset I don't know what else to do other than find an attorney.  Is that my only other option?  Any suggestions?  Thanks so much in advance.

[Burned2manybridgesB4]

I'm guessing, due to the year you've listed, that the property was auctioned, and the remaining balance owed on the mortgage principle is what's being "collected on."

As far as updating the TL, as long as it's still in arrears, they can update it monthly with the last "status,' which will keep you down as long as it's listing on your reports.

Hang out for a while, and others will jump in. I'm very limited on Forclosure proceedings, but others that come and go through the day are more informed.

[guiness56]

A CA cannot list monthly derogatories, only the OC can do that.  A CA can only list the worst delinquency of the account when they acquired it. 

They also cannot report as a Mortgage it has to say collections.

The drop off date should not be affected by the way they are currently reporting.  It goes by the DoFD of the account.  If that was changed, it is a violation of the FCRA.

[QUEENOFCANDLES]

I am in the exact same situation but with a different collection agency called Real Time Solutions. I filed a complaint with the CFPB regarding it. I will let you know when I get a response.

[Taylor4236]

Well there's some good news bad news here.  First, Franklin Credit Management is NOT a CA - its a mortgage company.  How do I know?  They held my mortgage and foreclosed on me.  They are ABSOLUTELY AWFUL!!!!!!!  I can't say this enough.  I filed a BBB complaint in NJ for their poor practices.  They incorrectly reported my mortgage as still having a balance owing (of $70K+) after foreclosure, even though they sent me the IRS tax forgiveness documentation for tax filing purposes and I'm in Washington, which is a nonrecourse state.  

Long story short, if they're reporting something incorrectly, basically you're going to have to sue them.  They won't return your calls or emails no matter who you call, and I've disputed it so many times with each CRA (they keep validating the information) that the CRA's basically told me to stop because clearly the info is correct and they refuse to review it any more.  Disputed more than 10 times with each CRA, in case you're wondering.

Here's some questions for you:

1) In what state was the foreclosed home located?  It makes a difference in whether its a recourse/nonrecourse.

2) Did you receive a 1099-C, and if so who provided it?  Primary lender or the 2nd?  (here's a fantastic link to read: http://www.irs.gov/uac/Home-Foreclosure-and-Debt-Cancellation)

3) What was the DOFD?

4) Do you have a copy of the recorded document that was filed with the county?  It will give you the date that the deed was transferred to the new owner - we need to know that.

In my particular case, I went so far as to consult with an attorney and they said that yes - ABSOLUTELY I was right and would win.  But I'd have to pay for it in attorney fees/court costs/filing fees/etc.  Since the reporting window is set to expire soon, I decided to hold off and see what happens and when it falls off my report.  One of the mods on this forum (Thanks Guiness!) told me that when the reporting deadline is done, it will actually report as a POSITIVE tradeline for the historical data prior to the FC.  Not sure how that's going to work - hasn't happened yet so I don't have any info, but will be giving an update when it happens.

I'm really sorry you're going through this.  I know exactly how you feel.