Bankruptcy & FICO

[Anonymous]

When I filed bankruptcy a few years ago, as it turns out, my mortgage was not re-affirmed. Because it's not showing up on my credit history now, the mortgage company says I have to reopen the bankruptcy to file the re-affirmation. I'd like to show my good payment history with the mortgage company, but don't want it to lower my score because the bankruptcy was re-opened.

[ShanetheMortgageMan]

Your new mortgage lender can obtain a Verification of Mortgage request which would be where the current mortgage lender asks your previous mortgage lender to write down the payment history.  A sample of the form is at http://www.mcserve.com/VOM.pdf.

What is the story with the BK & your mortgage?  Was your mortgage included in the BK?  Did you miss any mortgage payments?  If so, to what severity (30, 60, 90, 120 days late?) and when?

[Anonymous]

This is with my existing mortgage company. I haven't switched lenders. The loan was never behind and they never filed any paperwork with the court, so I'm not sure why I would need to complete a reaffirmation statement.

[ShanetheMortgageMan]

If it wasn't included in the BK and no payments were missed, I agree, I don't see why it would not have been reporting to your credit bureaus the entire time.  Have you established verbal communication with them or has this all been through mailed correspondence?

[Anonymous]

So far, it's all been over the phone. But, they keep wanting me to send them the affirmation notice because they don't have one on file. Should I just write them to force them to do something about it?

[ShanetheMortgageMan]

I think you should try writing since you've done it all over the phone.  Or I'd suggest you call them one last time and ask to speak with a supervisor there and explain no such document exists or will exists, they are trying to squeeze blood from a turnip.

[Anonymous]

I have this exact same problem. My mortgage is with WaMu. I filed BK, ad no idea I had to re-affirm before the discharge date (although it was listed in the BK application as property I intended to keep). I never missed a payment *ever*, never had a late. Now it's only reporting on EX - which is most likely a mistake since WaMu has told me (verbal and written) that they will not report without a reaffirmation. The problem is (also unknown to me at the time I filed - lawyer, in retrospect, sucked) you can't re-affirm with a closed BK. I have written them a letter asking them to reconsider - it's not really fair that I make on time payments and they don't report it - they are still considering it I guess since I haven't heard back from them.

Does anyone know if it's possible to re-affirm years later?

This is obviously having a negative effect on my EQ and TU scores as my EX score is a significantly higher.

I even tried to backdoor it and filed a dispute, however that didn't work.

[ShanetheMortgageMan]

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juggler314 wrote:

This is obviously having a negative effect on my EQ and TU scores as my EX score is a significantly higher.

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Might be a better question to ask on the bankruptcy or general credit section of this website since it is bankruptcy related.

[granny031350]

since your bk is now discharged, reaffirmation is moot.  You would have to open up your bk and then file the reaffirmation paperwork.  Not worth it!

You can obtain a mortgage history from the lender to prove to anyone who needs it that your payments have been ontime.

I would stop worrying over this.  And yes the derogatory notation is hurting your credit score.  I am in the same boat with my student loans.  However, I filed BK and this is one of the consequences.

Message Edited by granny031350 on 07-31-2008 07:44 PM

[Anonymous]

Juggler - I had the exact same happen.  Filed BK, Wamu never sent any reaffirm papers so nothing was signed prior to my BK being discharged.   Then a few months later they stopped reporting my mtg and called it a "closed account".  Nothing negative (I was never late), but closed nonetheless.

Now, they flat out refuse to report it, because technically (and legally) I don't owe the debt.  And neither do you in this case.  They definitely will not allow you to "reaffirm later".  A Reaffirmation agreement is only good and enforceable when submitted and accepted by the BK court BEFORE you are discharged.

I would LEAVE EX ALONE!   The fact this is reporting is a mistake, but a good one for you.   The other kind of good news is that if you ever get in trouble financially, you can walk away from the mtg and not owe a dime.  They cannot report it as negative item on your credit report either.