Experian lists my VA home loan as "Closed/Discharged in Ch 7 BK"

[Anonymous]

During 2017-02/2019 I let my finances get way out of hand. As a result, I filed Ch. 7 BK in Feb. 2019 and my case was D/C in June 2019. Things were moving in the right direction, including my FICO score which had dropped below 540 by 02/2019. It was slowly creeping back up as I began paying all bills in full on or before their due date. However it stalled in September at 574, so I signed up for a free Experian account through my USAA bank account.

I began to check out all aspects of their site including my current credit report. Lo and behold, I saw that my VA home loan was listed as "Closed/Discharged by Ch. 7 BK" even though my attorney assured me I wouldn't have any problem keeping my home. I have never received any paperwork to indicate that the loan was discharged. I have been making monthly payments to the bank who owns the loan. It has been transferred between banks on two occasions since 2016. The loan appears to be active. However, when I called the bank to investigate this, they disconnected the call. I will call back in the morning.

Should I dispute this information on my Experian credit report now or wait until I speak with someone at the bank who might be able to rectify this situation? I intend to review my other credit reports but I cannot download them for free until January 2020 when I can utilize the annual credit report website again. I'm really not sure what my next move should be. They're not counting that account on my Experian CR at all. The only installment loan listed is for my vehicle.

[Anonymous]

I would talk with the lender.  Make sure you have documents to show all the payments you paid.   Do get monthly reminders about payments?

If the lender wanted to foreclose they would be sending you a demand letter and several othrs notice depending on the state you live in.

Sounds like mistake. 

[FireMedic1]

Did you reaffirm your mortagage? Sign any papers saying this? Attorney saying this as you said and not offering the legal documents to reaffirm may have done it.

[Anonymous]

UPDATE: I contacted the lender as well as the attorney's office regarding my mortgage status. The bank rep I spoke with stated there's nothing they can do on their end because I didn't sign a reaffirmation agreement when I filed Ch. 7 BK. The attorney's office rep who filed my case in Feb 2019 stated the lender never sent them a reaffirmation agreement for me to sign and the attorney frowns upon his clients signing one as it puts them "on the hook" for such a large amount of debt. She also stated if I want to reopen the case, it'd be $760 and a long process to update the mortgage account. I also unwittingly disputed the account listing on my Experian CR because I thought it was a mistake that could be changed easily. Boy, what do I know?! Experian investigated the dispute, found the information to be accurate and left the listing in its current status as "Closed/DC by Ch. 7 BK". Strangely enough, Experian took it upon themselves to reopen the dispute today and I'm not sure why. Can they even do that without permission or formal request from the individual? I fear they're going to screw something up for me. I still don't know what to do about this. My mortgage is still not being counted as an installment loan in good standing so I'm not reaping any benefits in regards to my FICO score. However, the attorney's rep stated if I ever want to walk away from the loan, I could because it was technically DC. She told me as long as I'm making monthly payments to the lender on-time and in full, then the lender won't foreclose on me. I'd love some advice on how to proceed. Thanks.

[FireMedic1]

It doesnt natter what kind of loan it is really. Thats why I asked if any papers at all were signed for reaffimation. I thought this is what happened. Its reporting correctly as IIB and zippo balance and wont report any more payments. And yes you can walk away from a house. car, boat, ot whatever if a loan was not reaffirmed. If you can afford it and want your payment history and good standing back on your reports again. Go ahead and reopen the case and have it reaffirmed.

"the attorney frowns upon his clients signing one as it puts them "on the hook" for such a large amount of debt" Horse manuer. A home is one of the biggest investments in life. With or without a BK. You'd still have to pay rent or a mortgage to have a roof over your head. Unless a home was bought in cash or the loan was PIF. They should have asked you what you wanted to do and explain the 2 sides of reaffirming or not. Its up to the client. Not the lawyers feelings. But good luck on getting it back again!

[sznnmnt]

The same thing happened to me, but it was easy for me to dispute with EX that it was not included in the BK7. I went through many avenues to be sure that the mortgage was NOT included in the BK and it was stated as such in the BK paperwork as the 2 loans were ALWAYS paid before during and after the BK. I believe the CRAs just try to explain a closure of an account when there is no sure explanation. It is well known that mortgages get sold back and forth to different companies, mortgages get refinanced as well and ownerships change too. All of the above were reasons the mortgage accounts closed and it was was all too easy to try and make as many of my accounts look derrogatory no matter what, so creditors can make more in interest when I try to buy a car, home, or get a loan. It sucks, but that's what they do. The people working at the CRAs probably think we deserve it whether it's right or wrong.

If you have been current all along with your mortgage payments and the account wasn't closed, and you continue to make payments, all you need to do is show proof of that and tell them the account was not on the bankruptcy paperwork, excluded. CRAs are notorious for reporting wrong info. Just file a dispute letter.

[2b2rich]

If the mortgage was never reaffirmed (and that's what I've gathered, so far), then it is reporting accurately.

It is still your home to keep, as long as you keep making payments, etc.