Chapter 13 and my mortgage

Goeagles1231 · ‎02-24-2018

Back in 2014 I filed for bk 13. I was behind on my mortgage and I was paying the arrears in my chapter 13 plan. During the 13 I fell behind on my regular mortgage payments , so I applied for a modification with Wells Fargo and it got approved. I checked my credit a few months ago and it was showing the modified amount I owe on the mortgage. My BK was discharged in January of this year. I checked my credit this month and my mortgage is not on credit report now. It is only showing up in my closed accounts. Do a anybody know why this is? I am looking at selling or renting my house. Probably renting because I am upside down on the house. I wish I would have included the house in the chapter 13!

FSUGAPEACH78 · ‎03-05-2018

I'm impressed WF approved your modification while you were in the Chapter 13. I can't get them to budge! How long did the approval process take for you? Sorry for being off topic but that's impressive!

@Goeagles1231wrote:
Back in 2014 I filed for bk 13. I was behind on my mortgage and I was paying the arrears in my chapter 13 plan. During the 13 I fell behind on my regular mortgage payments , so I applied for a modification with Wells Fargo and it got approved. I checked my credit a few months ago and it was showing the modified amount I owe on the mortgage. My BK was discharged in January of this year. I checked my credit this month and my mortgage is not on credit report now. It is only showing up in my closed accounts. Do a anybody know why this is? I am looking at selling or renting my house. Probably renting because I am upside down on the house. I wish I would have included the house in the chapter 13!

Anonymous · ‎03-05-2018

Hi, more than likely you didn't reaffirm your mortgage in your Chapter 13 is why it's not reporting. I didn't even know that was necessary when it came to a Chapter 13 until someone on this forum stated it.
I suggest you trying calling Wells Fargo and ask them if they will resume reporting your mortgage to the CRA. They may comply or maynot.

Anonymous · ‎03-18-2018

If you listed your mortgage in the BK (reaffirm or not) they will stop reporting to your credit in fear of mistakenly violating FCRA. Good luck getting them to start reporting again. Once your BK is Discharged, they should start reporting. Again, good luck.

Goeagles1231 · ‎03-19-2018

So if it is not showing up in credit report .what would happen if I walk away from the house? Since my credit report is showing it closed.?

DaveInAZ · ‎03-19-2018

@Goeagles1231wrote:
So if it is not showing up in credit report .what would happen if I walk away from the house? Since my credit report is showing it closed.?

What is showing on your credit report doesn't have much to do with your legal obligations on the house. If you were making payments on the arrears during your chapter 13 it sounds like it was included in your BK. Also that Wells did a modification during the ch.13 your mortgage was not discharged in your ch.13. Check what your discharge papers say, and ask your attorney for an opinion.

But to me it sounds like you are still legally obligated for the modified mortgage balance. If you walk away Wells would foreclose, and if they sell the house for less than your owe, which is very likely, they can come after you for the "deficiency", the amount owed on the mortgage + late fees + foreclosure & auction fees minus the sales amount. "Come after you" as in get court judgement against you and garnish income & bank accounts.

Goeagles1231 · ‎03-19-2018

Okay. If it is not on my credit report will that payment be count towards my monthly obligations when applying for a new mortgage?

DaveInAZ · ‎03-19-2018

Maybe not. When calculating DTI (debt to income ratio, amount of monthly payments divided by income) most lenders go with the monthly payments listed on your credit report. But then most everyone has a monthly housing expense and most lenders will demand an explanation why you have no current housing expense. Several years ago I had a friend stay with me when he moved here out of state until he bought a house. His mortgage lender inisted on a letter from me stating that I was not charging him any rent.

And I think it would be a really bad move to try to move onto a new mortgage until you get your current one straightened out.

Goeagles1231 · ‎03-19-2018

What if I decide to rent the house out? What would a VA lender need to see to show it’s being rented ? Can I make up my own lease and have let’s say my mother in law rent it ?

DaveInAZ · ‎03-19-2018

I have no idea, I have no experience in making up phony documents to try to skirt around the rules. My guess is that as VA loan is federally insured loan, any false statements or documents made in obtaining the loan would be a federal crime.