Effect of Foreclosure

taggl00 — Thu, 21 Jun 2018 01:22:04 GMT

After Foreclosure 3 scores 690/678/653 ...the Foreclosure only appears on the 653 Credit Score.

My question is for drop off dates- I have a main mortgage and a HOLEC so i avoided PMI

HELOC first DOFD is 5/2016 and goes to 150+ days late until 11/2016...then shows as ok for 12/16 ( i did not make any payments), loan was then sold to another lender and starts at 150+ late on 3/2017 ...this is the same loan just transferred, but is hurting my score bad as it shows as 3 loans (2 HELOCS and Main Mortgage) 150+ late....

Now the main mortgage DOFD is 6/2016 and goes to 150+ days late, shows foreclosure as 4/2017, then goes to 150+ late again, then goes back to foreclosure statues 2/2018 to present...Does it drop off at DOFD or the foreclosure date? Is there a way to get only 1 HELOC to report and not have 2 different companies hurting my score? im afraid if the loan keeps getting re-sold, then they will all show as 150+ and hurt me even more

thanks

Re: Effect of Foreclosure

RobertEG — Sat, 23 Jun 2018 23:57:26 GMT

When the primary mortgage was foreclosed, how was the HELOC balance/status resolved?

Was it eventually paid, or does it remain open with a balance?

As for exclusion of the reporting of a foreclosure, a loan foreclosure is not a specific adverse item of information that has its own, specific exclusion provisions under FCRA 605(a).

Section 605(a) has four subparagraphs that define exclusion provisions for BK, tax liens, judgments, and collections/charge-offs.

Any adverse item of information that is not specifically provided for under subsections (1)-(4) is covered under the catch-all provisions of subsection (5), which sets the exclusion date for any other adverse item of information as being no later than 7 years after the occurence of that adverse item.

The exclusion of a foreclosure would thus be no later than 7 years from the date of the foreclosure, with the exception that if the foreclosure was also considered as a charge to profit and loss or its equivalent, then the exclusion period would fall under subsection 605(a)(4) at no later than 7 years plus 180 days from the DOFD.

The devil is thus in the details of whether the foreclosure also qualifies as being equivalent to a charge to profit and loss. That determination would vary depending upon the specific facts of your given situation.

Note that what is reported in your payment history profile does not govern the DOFD.

Creditors can omit reporting for certain months, or delay reporitng of derogs.

The definition of DOFD, as provided under FCRA 605(c), is that a new date of initial delinquency is set only when an account that was delinquent is brought back into good-standing, and then a new first delinquency occurs.

Avoiding reporting after an earlier reporting of delinquency does not reset the DOFD, as the account was not actually returned to good-standing under your account agreement.

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Effect of Foreclosure

Re: Effect of Foreclosure