Need help/advice: how to handle delinquencies and comments on closed foreclosure

[Anonymous]

I am hoping to get some help, advice and to give myself realistic expectations for my situation. I thought all delinquent payments would be removed 7 years from the DOFD, and the the Foreclosure would be removed from credit report 7 years from the filing date.  However, that's not what I am seeing on my most recent credit report.  I've outlined the details below, and am looking for confirmation that I am understanding FCRA correctly in terms of the removal dates.  If not, when can I expect them to be removed? How is this account supposed to look on my credit report?  Thanks!

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My former spouse and I refinanced our home in 2006.  We separated and I moved out of the house in early 2008 with the stipulation that my ex would be fully responsible for all finances related to the home until he could refinance and remove my name from the mortgage.  At the time I moved out, every payment had been made on time and my credit was pretty close to perfect.

My ex stopped making payments on the home mortgage in Nov 2008, the date the mortgage first became delinquent.  I don't believe my ex ever made another payment after Nov 2008 and the loan was never brought current again.    I was unaware of the delinquency until I was served a notice by a Sheriff about the default.   Despite my ex's attempts to pursue loan modification, he was not successful; the mortgage bounced from one servicer to another, the paperwork was lost several times, etc. so this process has dragged on for years.  The Judgement and Decree for Foreclosure was entered in Sep 2012 and foreclosure was finally completed in Jan 2019; the bank purchased the property at auction and I recevied the Motion to Confirm Sale and Waiver of Judgement for Deficiency, Report of Sale and Order Confirming Sale.

In reviewing credit reports from all three agencies as of today, they show the following:

Experian

Payment Status: Foreclosure proceeding started

Worst Delinquency: Foreclosure

Balance: $1XX,XXX

2 YR Payment History:

Jan 2017 - Sept 2018 = OK/NR for each month

October - Jan 2019 = FC

Older Derogratory Events: 5 entries under 90 Days Late (2019 (1); 2018 (3); 2016 (1)

Equifax 

Payment Status: At least 120 days or more than four payments pst due

Worst Delinquency: 120+ days past due

Balance: $1XX,XXX

2 YR Payment History: Jan 2017 - Sept 2018:  OK/NR for each month; October 2018 - Jan 2019: FC

Older Derogratory Events: 3 entries under 90 Days Late (all 2018)

Transunion

Payment Status: 120 days past due

Worst Delinquency: 120 days past due

Balance: $1XX,XXX

2 YR Payment History:

Jan 2017 - Sept 2018 = OK/NR for each month

October - Dec 2018 = FC

Jan 2019= NR

Older Derogratory Events: 25 entries under 90 Days Late (2018 (3); 2016 (9); 2015 (12); 2014 (1)

[RobertEG]

After the foreclosure proceeding was completed, the creditor issued a Waver of Judgement for Deficiency, which indicates either that they recouped the entire delinquent loan balance upon sale of the debt, OR that they chose to cancel and debt deficiency, which would have required that they notified both you and the IRS of debt cancellation by way of a form 1099c.

Which was it?

Did the sale recoup sufficent proceeds to cover the remaining debt balance, or was it for less, but the creditor legally cancelled and further debt obligation, thus making the difference taxable as income?

The distinction may likely determine whether the delinquent debt was covered under the charge to profit and loss exclusion provisisions under FCRA 605(a)(4), as clarified by subsection 605(c), and thus excluded based on DOFD alone, or whether the exclusion period is based on the date of the foreclosure action pursuant to FCRA 605(a)(5), which would be 7 years from the date of the foreclosure, and not based on DOFD.

[Anonymous]

Thank you so much for the response. The sale did not cover the amount due and the waiver was for the balance, with notice to me and the IRS.

[Anonymous]

Since the sale did not cover the amount due and the waiver was for the balance, with notice to me and the IRS, does this mean the DOFD applies (and NOT the Date Of Foreclosure), and that I should request deletion of the late payments, and foreclosure, and any comments related to them?