Request Assistance: How Foreclosure is Showing on Credit Reports

[EW800]

Hi Everyone,  

Hoping to get assistance from those far more knowedgeable than myself in regard to how a foreclosure is showing on my credit reports.  I appreciate your time and expertise!

Our home forclosed in late 2012 in a no-recourse state (MN).  

Experian:  I beleive the foreclosure is showing correctly -- Current Status shows as Foreclosed with a Balance of $0.  

TU:  The current status is showing "120 Days Past Due", however the Balance shows as $0.  The last update was December 2012.  It is listed in the comment section as a foreclusre, however the current status shows the 120 past due.  Am I correct that this would likely then show this account as an account that is currently behind, therefore holding down my credit score?  If I should try to get this corrected, is it best to go through the mortgage company or through TU?  Is there any reason that I should just leave it as is?  I do not want to make anything worse.  

Equifax:  I beleive there are two issues with this reporting.  Current Status shows as "120+ Past Due", with a balance of $0.  It does show the word foreclosure in the comment section.  An issue that I think might be hurting me even more is that for the several months following the foreclosure, each month shows as "OK", however in July of 2013 it is showing "120", then it goes back to several month of "OK".  It stopped reporting in about Dec 2013.  I assum that the 120 day right out of the blue in July 2013 is hurting my score?  Just like above, if I should try to get this corrected, is it best to go through the mortgage company or Equifax.  I do not want to make anything worse.  

Thank you so much!!

[gdale6]

If its not reporting monthly leave it alone, if you dispute it and they change the way it reports its going to affect your score as it would look like a new negative to FICO. They can report the maximum delinquency and since its 0 balance there isnt much you can do at this time except write GW letters. 90+ day lates are considered major delinquencies and will affect your score the entire time they are on your CRs, the further in time they go the less of an impact they do have on FICO.

[EW800]

Thank you so much, gdale6!  I was wondering if it might be best to just leave this alone and let time pass.  I don't want to poke a sleeping bear.  As you can see below, my scores are not too horible, given all that we went through.  I am trying hard to rebuild and do not want to do anything to mess up the progress thus far.  

Anyone disagree with the stance of just leaving this alone?

Thanks again!

[growing123]

I agree with gDale to leave it as is.  I too have a foreclosure on my CR and the CRA's were showing 120+ late as the current status and one was reporting a balance.  Without reading this forum, I disputed the information and the results were mixed.  EX changed the balance to $0, which was good, and EQ didn't change anything.  Instead, they updated the 'date reported' to current and my score dropped.  Then I had the added trouble of removing the 'account in dispute' codes...a pain going back and forth between the CRA and the OC. 

If balances are $0, I would leave alone. 

[growing123]

and wanted to mention that your scores are looking really good!

[EW800]

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@growing123 wrote:

and wanted to mention that your scores are looking really good!

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Thank you very much, I appreciate that.  Just like many of us here, it has been a rough road the last few years, but progress is being made.  Over the last 15 months or so, I have made sure that everything is paid on time and have put every penny possible into bringing UTIL down to single digits.  I believe that is why my scores have recovered fairly quickly.  Now my concern is to pray that nothing happens in how things are reported that would tank the scores.  That is why I am so thankful that I checked here before trying to change the 120 day lates showing on two of the reports.  Hopefully the mortgage comany won't make any more updates and that time will help improve my sscores.  I would love to be in the 720 range within a year, but not sure how realistic that is.  

If anyone else has suggestions or additional insight, please let me know!  

Thanks again to all!

[Shogun]

+1 gdale6

The factor that is causing this to be a derog is that it was a Foreclosure.  Any payment history, etc. does not add or subtract to that.  With it showing a $0 balance, that is all that is needed for this to sit and age like a bad wine.  If you were to dispute, or otherwise update it, which would probably just show it as a dispute and verify, it would show as a newer collection.  It would still age off at the same time, but monthly up to date reporting makes it look newer and hits your scores accordingly.

[EW800]

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@Shogun wrote:

+1 gdale6

The factor that is causing this to be a derog is that it was a Foreclosure.  Any payment history, etc. does not add or subtract to that.  With it showing a $0 balance, that is all that is needed for this to sit and age like a bad wine.  If you were to dispute, or otherwise update it, which would probably just show it as a dispute and verify, it would show as a newer collection.  It would still age off at the same time, but monthly up to date reporting makes it look newer and hits your scores accordingly.

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Thank you so much, Shogun!  

This forum is such a blessing....