Accurate Foreclosure Reporting

[mikec205]

Our home went through foreclosure several years ago.  Our credit report shows the account as open with an outstanding balance and is being reported 120 every month late going back 2 years.  There's no indication of foreclosure on our credit report.  I was told the report should show as foreclosed vs. being reported 120 days late every month.  How should our credit report look on a foreclosed property in California (if that matters)?

[RobertEG]

Account Status (Field 17A) should report as code 94, "Forclosure completed/sold to settle mortgage default.":

You can informally contact the creditor and request they update to show the correct current status, or you can file a formal dispute over the lack of current accuracy.

Your basis for requsting correction/disputing the accuracy is FCRA 623(a)(2), which requires any party who has reported information to a CRA to promptly update that information as necesssary to maintain its current accuracy.  A reasonable interpretation of the promptlness requirment would be in their next regualr reporting cycle after the information changes.  Years without update is clearly not in compliance with section 623(a)(2).