topic Re: Paid foreclosure in General Credit Topics

Paid foreclosure

Anonymous — Thu, 12 Apr 2012 17:25:18 GMT

I am working with an individual whose mortgage on their credit bureau reports the following data: Account closed by consumer 10/09; Paid Foreclosure; Account closed at consumers request. Account paid.

A notice of default was issued, but brought the account current prior to close and executed a sale of the home (paid in full, not a short sale). I am wondering since there was no consummation / sherrifs sale/ title transfer, and the loan was brought current prior to the foreclosure if there is a possibility of having the bureau disputed and updated to remove the coding and words "paid foreclosure".

The scores do not need to improve ( 750 middle) as this is the only derogatory item in the bureau.

Re: Paid foreclosure

pizzadude — Thu, 12 Apr 2012 17:29:52 GMT

I'm not understanding, are you saying that this person has a 750 FICO score with a foreclosure reporting ?

Re: Paid foreclosure

Anonymous — Thu, 12 Apr 2012 17:34:02 GMT

Yes actually 743 mid. Double checked the scores, actually 741, 743, and 754. Last late payment was 08/2009. No public records.

Re: Paid foreclosure

MarineVietVet — Thu, 12 Apr 2012 17:40:43 GMT

@Anonymous wrote:
Yes actually 743 mid. Double checked the scores, actually 741, 743, and 754. Last late payment was 08/2009. No public records.

And these are lender pulled?

Re: Paid foreclosure

Anonymous — Thu, 12 Apr 2012 17:48:47 GMT

Yes.

Re: Paid foreclosure

pizzadude — Thu, 12 Apr 2012 17:51:55 GMT

If these are actual FICO scores, I don't really see that there is a problem. I have to say I'm very suprised that the scores could be this high with a recent forclosure.

Are you certain that the account is reporting negatively at all ?

Re: Paid foreclosure

Anonymous — Thu, 12 Apr 2012 18:07:53 GMT

I was going to ask something similar, pizzadude.

Maybe by some kind of error, this tradeline says those comments but is reporting positively.

Either that or everything else this person has is in "high achiever" status and this is just THE one thing on his report.

Still 750 is quite high for a recent foreclosure.

Maybe it really isn't listed in the Negatives.

Re: Paid foreclosure

pizzadude — Thu, 12 Apr 2012 18:13:15 GMT

Yep, that is what I'm thinking as well, Frugal.

It sounds to me like although the comments mention "foreclosure", it is being ignored as a negative. Again, that is based on the assumption that the scores being posted are indeed FICO scores.

Re: Paid foreclosure

Anonymous — Thu, 12 Apr 2012 18:57:16 GMT

As a mortgage loan officer with 10 yrs in, I was shocked to see the scores this high. However this the bureau is filled with a good number of high credit lines rated 99+ months. The mortgage history again is the only bad.

The underwriting system smart enough to pick up the foreclosure since it comes back as a "referred" loan (referred to underwriting, not approved).

I appreciate the input!

754

Repository

TransUnion

Brand

Classic 04

Type

FICO

SSN

Customer name

BU1

    039 - Serious delinquency
    018 - Number of accounts with delinquency
    008 - Too many inquiries last 12 months
    013 - Time since delinquency is too recent or unknown

FACTA: Inquiries impacted the credit score.

743

Repository

Equifax

Brand

BEACON 5

Type

FICO

SSN

BQ1

    39 - Serious delinquency
    18 - Number of accounts with delinquency
    08 - Too many inquiries last 12 months
    12 - Length of time revolving accounts have been established

741

Repository

Experian

Brand

Fair Isaac V2

Type

FICO

SSN

BX1

    39 - Serious delinquency
    02 - Level of delinquency on accounts
    32 - Lack of recent installment loan information
    08 - Too many inquiries last 12 months

Bank of America

Opened

10/05

Reported

10/09

High balance

218,000

Reviewed

46 mos

08/09
07/09
02/09

03/09

90+

04/09

Pastdue

-0-

Payment

Paid

Balance

-0-

Last active

10/09

*BX1 *BU1 *BQ1 [Ind]

High limit

---

Install (I1)

Mortgage (CNV)

Account closed by consumer 10/09; Paid Foreclosure; Account closed at consumers request; Account paid

Refer/Eligible

5 This loan case file has been referred because a foreclosure was indicated on the credit report.

Re: Paid foreclosure

Anonymous — Thu, 12 Apr 2012 20:40:14 GMT

BofA is a tough nut to crack going by the experience of members on this board. Even if you were to get the foreclosure comment removed the multiple 30, 60 and 90 days are going to remain and I believe that is where the serious delinquency comment is coming from. I am no expert or even novice in the foreclosure process so I don't know if the notice of default is enough to keep the foreclosure comment alive.

Perhaps you could post the question or ask a mod to move it to the mortgage forum I know you are a loan officer but there are a couple there that might have an answer. And a dispute to the bureau is likely to come back verified and just add a dispute comment to the picture.

RobertEG is the resident expert on the direct dispute process (disputing the info to BofA instead of the bureaus. Either hope he chimes in or PM him to have a look at this thread.

Re: Paid foreclosure

RobertEG — Thu, 12 Apr 2012 23:44:32 GMT

Taking a parallel example, it would seem to me that the reporting of the forclosure would still remain.

Take the case of a collection. When a collection is reported, it was the delinquency at that stage of the debt, being delinquent and unpaid, that permitted the collection to report.

Later payment of the debt does not remove the fact that collection activity was initiated, and thus does not mandate removal of the reported collection.

The same would appear to apply, at least in my view, for a foreclusure. The foreclousure occured. I dont see a reason why that fact would be removed from the consumer's credit file based on subsequent payment of the debt.

Re: Paid foreclosure

AndySoCal — Fri, 13 Apr 2012 01:38:35 GMT

What you are looking at most lliely is a blended trade line. You need to find out which bureau is reporting it as a foreclosure. You could try annualcredit reports.com pull each bureau and se who is reporting what. Do not buy the score for what need is the trade line info. Also do you not which CRA pulled the report for the lender?