topic Re: Negative Comments Regarding Mortgage After Chapter 7 in Bankruptcy

Negative Comments Regarding Mortgage After Chapter 7

Beach2023 — Sat, 05 Apr 2025 05:10:21 GMT

I filed a Chapter 7 BK in November 2017. It was discharged around Feb or March 2018. I reaffirmed on my VA mortgage at the time. For years the mortgage did not report any payments on my credit report. I did file a dispute because they did not add the statement that I reaffirmed my mortgage. The mortgage finally started reporting payments about 2 years ago. My mortgage was sold multiple times the first 4 years I had it. On the my FICO report under negative items it is showing my mortgage. Once from Flagstar Star Bank it shows under Equifax with just a solid red dot (no explanation). It also shows my current servicer Freedom Mortgage same thing with the red dot and Equifax. I have not missed any payments on this mortgage not even when I was filing the Bk.

The statement is now included at at the very bottom that says the mortgage was reaffirmed. TransUnion and Experian show the loan as reporting in good standing. How can I get rid of the negative comment from Equifax? I don't want the loan to stop reporting like it once did.

Is this keeping my score down? My score is around 650. Should I just leave it alone since the BK will fall off in a couple of years?

Does the bankruptcy stay for 10 years from filing or 10 years from date of discharge? The red dot thing shows up when I filter the credit report by negative items. I see on the screenshot below that Equifax is reporting good standing. I don't get why it shows up under the negative comment then. I hope this all made sense.

Re: Negative Comments Regarding Mortgage After Chapter 7

JoeRockhead — Sat, 05 Apr 2025 12:52:48 GMT

@Beach2023 wrote:
I filed a Chapter 7 BK in November 2017. It was discharged around Feb or March 2018. I reaffirmed on my VA mortgage at the time. For years the mortgage did not report any payments on my credit report. I did file a dispute because they did not add the statement that I reaffirmed my mortgage. The mortgage finally started reporting payments about 2 years ago. My mortgage was sold multiple times the first 4 years I had it. On the my FICO report under negative items it is showing my mortgage. Once from Flagstar Star Bank it shows under Equifax with just a solid red dot (no explanation). It also shows my current servicer Freedom Mortgage same thing with the red dot and Equifax. I have not missed any payments on this mortgage not even when I was filing the Bk.

The statement is now included at at the very bottom that says the mortgage was reaffirmed. TransUnion and Experian show the loan as reporting in good standing. How can I get rid of the negative comment from Equifax? I don't want the loan to stop reporting like it once did.
Is this keeping my score down? My score is around 650. Should I just leave it alone since the BK will fall off in a couple of years?
Does the bankruptcy stay for 10 years from filing or 10 years from date of discharge? The red dot thing shows up when I filter the credit report by negative items. I see on the screenshot below that Equifax is reporting good standing. I don't get why it shows up under the negative comment then. I hope this all made sense.

The BK notation is the most damaging thing on your reports, and will fall off based on the filing date.

Notations/marks like this have absolutely no bearing on your scores. They only serve to highlight to anyone looking at your reports it could be a potential negative account, and is likely only there due to the bankruptcy being reported. It's understandably frustrating that it's there, but the on time payment history for this account is what matters most when it comes to scoring.

We're talking about Equifax, who is notorious for being difficult to get corrections done right so you might consider just leaving it alone and see if the notation changes once the BK is falls off your reports.

Re: Negative Comments Regarding Mortgage After Chapter 7

Tastraphy — Fri, 18 Apr 2025 13:39:36 GMT

The notations are frustrating. I'm close to completing a Chapter 13 in the next few months, and while pulling the reports, noticed that my mortgage through Rocket is showing "included in BK". I was never late on my mortgage payments, and it wasn't included. I've paid that on my own the entire time separate through the plan. However, when I first filed, my attorney and me got a certified letter that since I filed, they required that I file some paper work with them, and the cost of that was $500. The only method of payment they accepted was through the trustee, so for them charging me a $500 fee that had to go through the trustee, my reports are all showing that my mortgage was part of the bankruptcy. I just keep telling myself that in 4 months, it will be discharged, and another 2 years or sooner my reports will be clean.

Re: Negative Comments Regarding Mortgage After Chapter 7

GreatLife — Fri, 18 Apr 2025 15:38:30 GMT

My limited understanding is BK petitioners can choose to exempt certain debt obligations such as outstanding mortgages or auto loans, but those lenders must agree and are still included on the creditors list in BK filings? If so, then a BK notation on credit reports is accurate.

Re: Negative Comments Regarding Mortgage After Chapter 7

Lurker22 — Mon, 21 Apr 2025 11:31:31 GMT

@GreatLife wrote:
My limited understanding is BK petitioners can choose to exempt certain debt obligations such as outstanding mortgages or auto loans, but those lenders must agree and are still included on the creditors list in BK filings? If so, then a BK notation on credit reports is accurate.

My mortgage was paid outside of BK but was "included" in my BK - wasn't late or behind on anything, BOA was the servicer at the time and added a ton of legal fees but they ended up being waived at discharge and thankfully BOA sold the mortgate to Mr. Cooper shortly after discharge so the note was never included on the new account .... talk about luck