topic Re: Mortgage showing up as "IIB" in Bankruptcy

Mortgage showing up as "IIB"

Anonymous — Wed, 08 Dec 2010 20:41:31 GMT

Is this right? My bankruptcy just discharged and I pulled my credit report. It says my mortgage is IIB, even though I kept my house and have not been late - is this supposed to be this way?

Re: Mortgage showing up as "IIB"

Anonymous — Wed, 08 Dec 2010 21:30:51 GMT

Hi Fresh,

You're smart to pull your credit report after BK discharge to make sure everything is reporting correctly.

I filed CH 13 - so if yours is a CH 7 it may be different.

Our mortgage was properly reported as IIB even though we made payments directly to the mortgage company throughout the bankruptcy.

When the BK plan is outlined and approved, one of the factors included in that plan is the mortgage; so the mortgage is "included" in the BK.

And, if payments are not made - on time - to the mortgage company, they will contact the BK trustee as well as contacting the individual directly.

We certainly didn't understand this, and were pretty surprised when we first pulled our reports - we asked the same question you're asking.

So, in a nutshell - "yes".

Re: Mortgage showing up as "IIB"

chasmith — Wed, 08 Dec 2010 21:34:08 GMT

If you didn't reaffirm the mortgage in a Chapter 7 and are "paying through" then IIB is correct.

Re: Mortgage showing up as "IIB"

Anonymous — Wed, 08 Dec 2010 21:41:04 GMT

I called the mortgage company and asked if I could reaffirm the mortgage - they said i could and sent off some paperwork for me to do. Hopefully doing this will cause them to report as paying on time, what do you guys think?

Re: Mortgage showing up as "IIB"

chasmith — Wed, 08 Dec 2010 21:47:09 GMT

Reaffirmation must be approved by the judge, before discharge. To reaffirm now would require reopening your case.

Re: Mortgage showing up as "IIB"

Anonymous — Wed, 08 Dec 2010 21:53:51 GMT

I've not received the official discharge yet... I hope it's not too late

Re: Mortgage showing up as "IIB"

chasmith — Wed, 08 Dec 2010 21:57:43 GMT

Are you using an attorney? If so I would urgently recommend you discuss this with him/her. Also, try to get reporting addressed in the reaffirmation agreement.

Re: Mortgage showing up as "IIB"

Anonymous — Wed, 05 Jan 2011 01:03:52 GMT

We had a 7 discharged in April of '07. We *thought* we had made it pretty clear to the attorney that we intended to keep and pay for our home. We found out in 2009 that the loan had been discharged and that our on-time payments were not reporting as on-time, rather, IIB.

Angry, we contacted a new attorney to reopen the bankruptcy, reaffirm the mortgage and reclose the bankrupcty. Almost a year later, a number of things happened that made us realize we were fools to desire the mortgage to be reaffirmed.

Not reaffirming the mortgage puts YOU clearly in the driver seat in regards to walking away. Many people told us this and we kept repeating that we would NEVER want to walk away and that it was harmful to have the mortgage report as IIB for the life of the loan (ie 25 more years, plus ten years for the derogatory to fall off).

Well lo and behold...we learned the house was 100k underwater...worth less than half of what we owe. My husband is taking a job almost 8 hours away. We want to walk away. Fortunately, the loan had not yet been reaffirmed...we called the attorney and told him to stop all reaffirmation proceedings.

We now have the power to walk away...and we have more leverage with the banks to obtain a modification if we choose to keep the property (it's a rental property).

I'd STRONGLY urge you to consider the reaffirmation. It really is in your best interest to NOT reaffirm unless you are absolutely positively sure you will not lose your job, desire to sell, relocate, get ill, etc. Reaffriming means the bank can come after you for a deficiency judgement should you foreclose in the future. Not reaffirming means the have nothing they can do other than reclaim the property via foreclosure if you default.

Re: Mortgage showing up as "IIB"

QueenBean — Fri, 14 Jan 2011 20:30:33 GMT

I filed a CH7 and then didn't go through with it - my mortgage payment history was perfect - was never late and now, 3 years later it still says IIB. They say that since I filed, they will still put the IIB in the comment section. So nice.

Re: Mortgage showing up as "IIB"

Anonymous — Fri, 14 Jan 2011 20:38:43 GMT

@QueenBean wrote:
I filed a CH7 and then didn't go through with it - my mortgage payment history was perfect - was never late and now, 3 years later it still says IIB. They say that since I filed, they will still put the IIB in the comment section. So nice.

Hi QueenBean,

This is surprising to a lot of folks. Once a BK is filed, it will report. And once an account is IIB filing, it will report.

I don't know if it's nice, or not; but it's accurate.

It's just that for most of us folks, we are not aware of all things BK - so it comes as a (very unpleasant) surprise.

In a best world, this stuff would be very visible as part of the filing process - but, unfortunately, it doesn't seem to work that way. I never heard about this until being on these forums.

Re: Mortgage showing up as "IIB"

QueenBean — Tue, 18 Jan 2011 06:20:26 GMT

True - the whole way BK is reported is just wrong is so many ways - (thank you politicians). I certainly wish that I had found this forum first, but I guess if I can serve as a warning for others my life will have served it's purpose.

....I have to admit that it still gripes me to see that perfect payment history flagged as derogatory, but life and FICO is not always fair, but it's much much better when you know the rules to the game (thanks everyone here)

Re: Mortgage showing up as "IIB"

Anonymous — Tue, 18 Jan 2011 07:35:49 GMT

I'm not sure it's unfair to report when someone files for BK. It's accurate.

If I apply for a credit card and am accepted, it reports even if I decide not to use it, or if I close it.

If I'm engaged, and break it off, I was still engaged.

If I put a nonrefundable deposit down for an item and decide against purchasing it, they will still retain my deposit.

In my case, I had a BK discharged after making perfect payments on it for - oh, I think a year and a half. I didn't do anything wrong. Something in our finance reports changed due to someone else's inappropriate actions*, and the trustee made a choice that surprised the attorneys and me - She chose to dismiss my BK. I had to refile (cost $$) in order to complete payment plans to my creditors, and I then had two CH 13 BK's reporting. It is what it is - and the reporting in my case is accurate.

I think it's more savvy to look forward and figure out what the best next steps are, rather than fretting about the past. Especially if in our fretting we fail to take full responsibility for our own actions.

___________________

*(DH had a claim filed against him for some money, and that had to be included in the original BK. We counter-claimed with the accurate information (we also included this information in the original BK), and the bottom line was that the party owed DH several thousand dollars--which that party knew all along. Some folks are nasty dishonest.) Life happens.

Re: Mortgage showing up as "IIB"

Anonymous — Tue, 18 Jan 2011 22:52:50 GMT

Do you have any advice for someone considering BK7 and how to do it the best it can be done? How to avoid the issues that you see in hindsight that could have been avoided? How to minimize damage to your credit? If you reaffirm your home and keep paying, does it show up as a good payment record? I've never been late on my mortgage.