topic Re: Statute of Limitations for reporting a foreclosure. in Mortgage Loans

Statute of Limitations for reporting a foreclosure

Anonymous — Mon, 01 Jun 2009 22:30:55 GMT

We were caught up with the Saxon debacle, after my husband lost his job. They would not return phone calls, would not respond to our lawyer's correspondance and subsequently we lost the home to forclosure. The original loan was for $360,000 and accrued late payments were $30,000. The home sold at auction for $195,000. We did receive a 1099 A and were not required to pay the taxes on the shortfall. The foreclosure happened in Missouri which is a no deficiency state.

My questions is this. We have pulled our credit report and Saxon is still showing the loan as active with late payments of $39,000, making the balance due on the note of around $390,000. They have not reported the foreclosure which happened in September of 2008. Is Saxon required to report the foreclosure in a timely manner or can they report the foreclosure anytime they want? We are trying to qualify for another mortgage and presently the FICO is at 650. If a foreclosure is posted it will take a dive, but for how much I am not sure.

Is their a Statute of Limitations for reporting to the credit agencies?

Re: Statute of Limitations for reporting a foreclosure

Anonymous — Mon, 01 Jun 2009 22:36:28 GMT

I haven't gone through this so i don't know personally. I know two people that recently had foreclosures and they're both sitting in the mid to high 400's with their scores now. Usually when people are dealing with foreclosure they have other things hurting them too, late credit cards and auto loans so it may not be a fair comparison. You might want to ask in the Rebuilding Your Credit forum too.

The only thing i know for sure is there is a waiting period before you can purchase again after a foreclosure regardless of score.

Re: Statute of Limitations for reporting a foreclosure

Anonymous — Tue, 02 Jun 2009 00:20:56 GMT

Most court recordings are reported to the CRAs by 3rd parties. That might be why it isn't on your CR now. Either they missed it or they just haven't started reporting.

You might have gotten lucky & it might not appear. It would show under Public Records and it is a big hit!

I think the reporting of the mortgage should be *closed* Please wait untill someone else answers as I do not know much about a mortgage..

You can't take this to the bank either.......My friend had a forclosure and was told that they had to wait for 3 years in order to get another mortg. I do not know if that still stands.

Re: Statute of Limitations for reporting a foreclosure.

llecs — Mon, 01 Jun 2009 20:51:30 GMT

The CRTP on negative information on your CRs is 7 yrs from DOFD, or the time you first showed a 30 day late, then a 60, and so on. You don't want them to update anything because your score will drop if they did.

Re: Statute of Limitations for reporting a foreclosure.

Anonymous — Mon, 01 Jun 2009 20:55:40 GMT

Meaning that we do not want to wake the sleeping giant? Should be dispute the open mortgage or leave it alone? Would the foreclosure statement be more or less derogitory than the defaulted mortgage?

Thanks for your post and update.

Re: Statute of Limitations for reporting a foreclosure.

Anonymous — Mon, 01 Jun 2009 21:38:02 GMT

What type of mortgage are you trying to qualify for? FHA and conventional will not approve you for a new loan for 2-3 years after the date of foreclosure... unless there are extreme extenuating circumstances (job loss does not count)

Re: Statute of Limitations for reporting a foreclosure.

Anonymous — Mon, 01 Jun 2009 22:23:43 GMT

We are having our son qualify for the mortgage and we will take him out with an FHA or conventional after the 2 or 3 year wait.

Since the report does not show a foreclosure but only a mortgage late entry, does the clock start ticking after they report the foreclosure or the actual date of the foreclosure? It will be a year in September that the actual foreclosure took place.

I just wonder if I should have the credit agencies do a inquiry so that the defaulted mortgage would be updated to the foreclosure.

Thanks for your responses, they are greatly appreciated.

Re: Statute of Limitations for reporting a foreclosure.

Anonymous — Tue, 02 Jun 2009 16:48:51 GMT

@Anonymous wrote:
We are having our son qualify for the mortgage and we will take him out with an FHA or conventional after the 2 or 3 year wait.

Since the report does not show a foreclosure but only a mortgage late entry, does the clock start ticking after they report the foreclosure or the actual date of the foreclosure? It will be a year in September that the actual foreclosure took place.

I just wonder if I should have the credit agencies do a inquiry so that the defaulted mortgage would be updated to the foreclosure.

Thanks for your responses, they are greatly appreciated.

Since you would be required to submit foreclosure info when you apply for another home and the bank/lender would do the research on it, you might be better off just having the credit agencies update your file with it listed as a foreclosure with the correct date so that if you do have to wait 3-5 years before buying again you'll have less time to wait. While your scores would take a dive you'll have plenty of time to do things to improve your score