Creditor Reporting New Delinquent Status Each Month?????

[Anonymous]

About 5 years ago, I had a situation that resulted in me voluntarily surrendering a mobile home and walking away.  I realized it would remain on my credit for 7 years, but had no other options at the time.  The creditor reported it on my credit report at the time, and of course, my score took a hit.  In 2007, they sold the mobile home for a lesser amount, which left a balance owing still.  At that time they "closed" the account.

Every month since that time, they have reported to the bureaus on this closed account and the "current status" is still "voluntary surrender" and shows the balance.  This makes it appear every month as though I'm doing a new voluntary surrender or incurring new delinquency, since the status date is the current month.

Is this really the way they are suppose to report it?  It seems to me that it's being reported as new status every month, thereby lowering my score all the more.

It will fall off my record in 2 more years, but if they are reporting it incorrectly, I'd like to dispute it and get it fixed to be on the way to repairing my credit score.

Anyone have any ideas??  Thanks for your help.

[DI]

That's the way it suppose to be reported.  What determines when the tradeline get deleted is the DOFD?  DOFD cannot be change.  If you still owe a balance, and you haven't been sued you may not want to dispute anything on the account until the SOL has expired. 

Message Edited by DI on 09-27-2009 03:11 PM

[Anonymous]

It is being reported correctly. 

If you owe a balance on a voluntary surrender then this will remain negative for 7 years from the first late payment that eventually lead to the surrender.  Bear in mind even after the account falls off your report you can still be sued for the balance.  (the whole balance that you owe on the account , not the balance - what it was sold for) based on your state SOL.   voluntary surrender does not negate you contract. 

If you pay off the full balance now, this will not change how long the report stays on your account it will still be 7 years from your first delinquency.

If you pay off the account  now it will update to paid  but will still be a negative and stay for 7 years total.

It is up to you an your financial situation what you choose to do.  But be careful they can come after you for the money legally for years based upon you state SOL.  in addition to legally being able to report for  7 years.  

[Anonymous]

Thanks, guys.  I appreciate your help!

I realize the money owed on the deficiency does not get erased.  I wish I had the $32,000 to pay it off... but I guess this is one price I pay for a very poor purchase decision.

[Anonymous]

Make sure that you keep copies of all 3 CBs reporting. If the DOFD is 5 years ago you may be past SOL now or soon. Check your SOL. Promissory note for your state.  http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

This should drop from your CR 7-7.5 years from DOFD. This should be reported under the OC reporting.

The date that they sold it in 2007 doesn't matter. It is only the DOFD that does.