This is a great forum. I've been a mortgage lender for 13 years, and like most of my peers, have existed in a foggy state of comprehension of how credit scores work. I think most of us understand the basics, but when the mortgage industry lives or dies by credit scores, we are usually inept at really understanding how individual events affect scoring. With that being said...
My customers filed ch7 BK in 2003. A recent credit pull revealed numerous accounts still reporting balances that were included in the BK, including some that reported activity after the BK (one of which continued to report monthly lates!). They contacted the 3 bureaus, and 2 of them have updated the balances to zero.
Some of these accounts show DLA after the BK - can they legally do this? Also, these updated accounts now show Date Reported as 03/07 - does this adversely affect credit scores? Their scores have dropped about 50 points since 01/07, but they have also recently paid some medical collections off, which has not helped. Why paying off a collection will lower credit scores amazes me. No good deed goes unpunished. Thanks for any advice!
