Foreclosure not on credit report

[colorfulcolorado]

Can anyone please help me find out some information.  I am in the underwriting process to purchase a home.  I had a foreclosure in 2009 and filed chapter 7 in 2010 and included the foreclosure.  The foreclosure has never been on my credit report.  The underwriters have said that I need to have the foreclosure added to my credit report.  How do I add this 4 yrs later?  And, how does it affect my credit report?  Does it show up as a 4 yr old account because if it were added 4 yrs ago, it would have been a score hit but gradually gotten better over time.  Or does this hit my credit as a new entry and will drop my score alot? 

[pizzadude]

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@colorfulcolorado wrote:

Can anyone please help me find out some information.  I am in the underwriting process to purchase a home.  I had a foreclosure in 2009 and filed chapter 7 in 2010 and included the foreclosure.  The foreclosure has never been on my credit report.  The underwriters have said that I need to have the foreclosure added to my credit report.  How do I add this 4 yrs later?  And, how does it affect my credit report?  Does it show up as a 4 yr old account because if it were added 4 yrs ago, it would have been a score hit but gradually gotten better over time.  Or does this hit my credit as a new entry and will drop my score alot? 

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I'm not sure why they want it added to your reports, but I can understand them requesting verification or validation from the creditor.

If it gets added to your reports I'd expect a large drop in your FICO score, which may hurt your chances of approval.   I'd try to avoid having it added.

[shols44]

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@colorfulcolorado wrote:

Can anyone please help me find out some information.  I am in the underwriting process to purchase a home.  I had a foreclosure in 2009 and filed chapter 7 in 2010 and included the foreclosure.  The foreclosure has never been on my credit report.  The underwriters have said that I need to have the foreclosure added to my credit report.  How do I add this 4 yrs later?  And, how does it affect my credit report?  Does it show up as a 4 yr old account because if it were added 4 yrs ago, it would have been a score hit but gradually gotten better over time.  Or does this hit my credit as a new entry and will drop my score alot? 

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What kind of idiotic request is this? Why would anyone ask you to deliberately harm your own credit profile? Please take your business elsewhere. I don't even care if they are offering your 1% fixed...move on. 

[colorfulcolorado]

Does anyone know how to get the foreclosure on my credit report?  And if so, how will this affect my credit?  Will it reflect a 4 yr old account or a new account?

TU  712

EQ  694

EX  705

[shols44]

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@colorfulcolorado wrote:

Does anyone know how to get the foreclosure on my credit report?  And if so, how will this affect my credit?  Will it reflect a 4 yr old account or a new account?

TU  712

EQ  694

EX  705

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Why are you still considering this? It is not a smart move period. 

[colorfulcolorado]

Not that I am considering it, I have spoken to several other mortgage companies and they all say the same thing.  That my credit report has to accurately reflect my bankruptcy as well as my foreclosure as a public record because my credit scoring would not be accurate.  So, now I don't know how to have it added.

[shols44]

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@colorfulcolorado wrote:

Not that I am considering it, I have spoken to several other mortgage companies and they all say the same thing.  That my credit report has to accurately reflect my bankruptcy as well as my foreclosure as a public record because my credit scoring would not be accurate.  So, now I don't know how to have it added.

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This is pretty ridiculous. Can you provide the exact wording the underwriter used to make this request? There is no statute that says your report has to reflect your bankruptcy or foreclosure. Your credit report is not the avenue where these public records are supposed to be kept. In fact, there is no requirement that anyone report anything to your report, only that what they report is accurate. The fact that your foreclosure is not on your report is not an inaccuracy. It is simply your dang luck. Your lender simply chose not to report. That is your gain. What the heck do they know about credit scoring? Your score IS accurate based on the information that is being reported END OF STORY! So their point is your score should be lower so you can qualify for a worse rate and pay points? What a load!

I'm completely shocked that other lenders are asking for the same thing. This is crazy. Are they going to make you chase down every negative reporting you've ever had and force them to report negative information? They are essentially asking you to self incriminate for their own benefit. 100% chance it lowers your score. Since it is new information, fico may treat is as recent information! Meaning a significant tank.

At this point, I would work with a broker. Disclose this problem fully during pre-approval and perhaps it can be dealt with upfront. Try and speak with the underwriters as well. Perhaps a personal conversation will help. I can't understand why they are hung up on this. You already told them and the record can be found easily with a few clicks. Your credit report is the most useless source for that information unless someone simply want to rip you off. 

If all else fails, I would take this to the streets and accuse them of unfair and predatory underwriting guidelines and report them to the VA, HUD, AG, BBB and other state regs. 

Rant over! 

[harveys0024]

Please update what happened in your situation. I am facing the same thing. Mortgage is still showing open from years ago after foreclosure never reported on credit. It just shows 60 days late.and new lender is wanting me to contact them and have the account updated. What will happen?? Theyre saying I cant get new mortgage with old open acct showing.

[StartingOver10]

Either the OP misunderstood what the u/w was asking for or the u/w is misguided. OR, the OP never spoke to the u/w - just the LO and there was a miscommunication with the LO.

Once the BK was discharged the TL is to read iib and zero balance. It doesn't change thereafter to reflect the f/c. It stays iib and zero balance, Naturally this only applies to people that have been discharged in BK.

What the OP needs to supply is the deed (Certificate of Title) to the u/w to show the date of transfer from the debtor back to the bank. That's all.

If that isn't suitable, find a lender that gets it. There are many out there.

[harveys0024]

Well in my case I never filed bankruptcy. I purchased the home in 2006 went through a divorce a few months later she was given the house and lost it . She filed bankruptcy. I didnt even have a clue of any of this or that it was on my credit until now trying to purchase a new home. Terrible I know, I just never was one to keep updated or need to pull my credit. That'll change now. Anyhow the account never showed up on my credit as foreclosed. It just shows and open mortgage with this bank for 122 grand and the last activity reported a few years ago is late payments. The loan officer has everything ready to go with my loan accept she's wanting me to contact this bank and have them "update the account to 0 balance and closed" . Im terrified that the bank will then mark foreclosed and ruin my credit or come after me for money. Is there any way around this.