Should I report private party mortgage?

[Anonymous]

My credit scores do not show that I bought a house in a small town in 2006,  It only cost $18,000 and I paid $3,000 down and assumed a note for $15,000.

That note is now paid down to $12,000 and will be paid off in ten months.

As my note holder is an individual of course there is no reporting.  Should I report this to the rating agencies?

I could pay the note off in January and if I do, or if I just make payments until October, in either event I assume I should tell the credit rating agencies, but how will they verify this or do they even care to?

[haulingthescoreup]

Hi, welcome to the forums!

As I understand it, it would need to be the lender who reported it. S/he would have to pay a fee to all three agencies to do so, and if I read correctly, this would have to happen every single month.

It sounds like you had a wonderful deal, but it's going to be an uphill struggle to get it to report.

[Anonymous]

Thanks.  I guess when I pay the mortgage off I can put up the money and pay for her to report that it was paid off and there were no late payments. 

This really shows one of the many flaws in the credit agencies.  And they won't care to fix it.  I could just keep a low profile and do another contract to deed like this one. More sellers should hold the notes anyway and cut out the banksters.... That's what I will do if and when I sell and I do have a buyer for my home now.

In rural America it is different.  When I moved here I told the local real estate agent how I bought the home and she and her husband said they would do it that way. But now she said every sale she makes is a contract to deed similar to mine because of the mortgage climate and the low prices on many homes here in rural Colorado (not the mountains).

[haulingthescoreup]

Well, if she does report it, it will only stay on your reports for a month, because the lenders have to update every month. So if you're trying to get this to show for a mortgage app or some other specific purpose, your timing (and that of the bureaus) will have to be perfect.

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@Anonymous wrote:

This really shows one of the many flaws in the credit agencies.  And they won't care to fix it...

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I'm absolutely the last person to say anything positive about the credit bureaus. But this is pretty unrealistic. How on earth are they supposed to report something if it's not reported to them? And they can't take any old info that comes in, or else people with awful reports will just get all their friends to report false credit info (positive info, no doubt. )

I think it's great to do private financing. I only wish that it were feasible for more people.

[MattH]

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@haulingthescoreup wrote:

Well, if she does report it, it will only stay on your reports for a month, because the lenders have to update every month. So if you're trying to get this to show for a mortgage app or some other specific purpose, your timing (and that of the bureaus) will have to be perfect.

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@Anonymous wrote:

This really shows one of the many flaws in the credit agencies.  And they won't care to fix it...

---

I'm absolutely the last person to say anything positive about the credit bureaus. But this is pretty unrealistic. How on earth are they supposed to report something if it's not reported to them? And they can't take any old info that comes in, or else people with awful reports will just get all their friends to report false credit info (positive info, no doubt. )

I think it's great to do private financing. I only wish that it were feasible for more people.

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I know somebody who sold a property (a small business) on a land contract basis; the new owner went bankrupt a couple years later, so he had to take it back and spend several years building it back to the point where he could sell it again.