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When Will Defaulted Mortgage Fall Off My Credit Report?

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Frequent Contributor

When Will Defaulted Mortgage Fall Off My Credit Report?

I have not made a mortgage payment of any kind since January 2010.  Been working to get a loan mod for years.  Always denied.  Credit report shows "forecosure process started."  No complaint has been filed.  At this point, not only may there be a Statute of limitations problem, but I'm wondering when the account will drop off my report.  Does it work just like a credit card?  About 7 years from the default date, it should vanish?  I guess my confusion centers around the fact that most 1st mortgage lenders do not charge off the mortgage loan.  So all I have on my report are years of late payments.  None of my reports show a removal date for this account.  But I do see a removal date on Experian for my 2nd discharged mortgage..

 

Would appreciate any feedback.  Thx.

9 REPLIES 9
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New Contributor

Re: When Will Defaulted Mortgage Fall Off My Credit Report?


@Gonzozap wrote:

I have not made a mortgage payment of any kind since January 2010.  Been working to get a loan mod for years.  Always denied.  Credit report shows "forecosure process started."  No complaint has been filed.  At this point, not only may there be a Statute of limitations problem, but I'm wondering when the account will drop off my report.  Does it work just like a credit card?  About 7 years from the default date, it should vanish?  I guess my confusion centers around the fact that most 1st mortgage lenders do not charge off the mortgage loan.  So all I have on my report are years of late payments.  None of my reports show a removal date for this account.  But I do see a removal date on Experian for my 2nd discharged mortgage..

 

Would appreciate any feedback.  Thx.


My guess is around December of 2016.  I stopped making payments in May 2009, it was foreclosed in June 2013 but fell off my report in April 2016 (7 years from date of 1st delinquency).  What may be different with you is that the account is still open.  You may want to call the CRA'sand ask when it will be deleted.  Experian typically delete 3 months early automatically.  They may be willing to delete it for you now.  The other 2 CRA's will delete approximately 1 month early (TU may delete 3-6 months early upon request for "Early Exclusion" but you HAVE TO ASK for a supervisor.  The 1st level person can't do it.  Good luck and let us know how it turns out.

Message 2 of 10
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Legendary Contributor

Re: When Will Defaulted Mortgage Fall Off My Credit Report?

At this point, the foreclosure process has not been completed, so there is no determination of whether the creditor has any loss, and if so, its amount.

 

A foreclosure is not a specifically identified type of adverse information that is listed under FCRA 605(a), and thus falls under the catch-all exclusion period of 7 years from date of occurence provided under FCRA 605(a)(5).  The date of occurence would be the date they reported the fact that they have initiated the foreclosure process.

Deletion, at that point, would only apply to that specific comment, and not to the entire reporting of the mortgage.

 

If/when the foreclosure is actually completed, then a charge to profit and loss becomes of record.   Their reporting of that fact would, if they sustain a loss, become the equivalent of a charge to profit and loss,which has a credit report exclusion period of no later than 7 years plus 180 days from the date of your first delinquency on the mortgage, after which you remained delinquent until it was foreclosed.  FCRA 605(a)(4) and 605(c).

The creditor is not requried to report a DOFD until they have first reported the equivalent of a charge to profit and loss.  That has not yet occured.

 

 

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Frequent Contributor

Re: LOAN WAS ACCELERATED - EQUIVALENT TO A CHARGE-OFF FOR REPORTING PURPOSES

Thx for responding all.

 

The other contingent I neglected to mention is that the loan was accelerated in March 2010.  Don't want to get into too much legalese, but I'm sure most of us know that when a loan is accelerated, there are no more payments due.  And technically, the servicer should not be reporting any late payments after the acceleration date.  For good reason, I have not made this an issue with the servicer yet.  But since the SOL has passed (& that will also be a battle), I'm ready to pounce on everything.  Part of my argument with the credit bureaus will be that the acceleration date is equivalent to a charge off date, and therefore the countdown time must start from the acceleration date.   At a minimum, all late payment reporting after the acceleration date must be removed.

 

The foreclosure would be a public record.

 

If the servicer had not accelerated the loan, then this argument would be nulled.

 

Message 4 of 10
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Frequent Contributor

Re: LOAN WAS ACCELERATED - EQUIVALENT TO A CHARGE-OFF FOR REPORTING PURPOSES

UPDATE:  Both my 1st and 2nd mortgages have fallen off my report.  SO so happy.

Message 5 of 10
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Super Contributor

Re: LOAN WAS ACCELERATED - EQUIVALENT TO A CHARGE-OFF FOR REPORTING PURPOSES


@Gonzozap wrote:

UPDATE:  Both my 1st and 2nd mortgages have fallen off my report.  SO so happy.


Good to hear and congrats!!

Message 6 of 10
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Legendary Contributor

Re: When Will Defaulted Mortgage Fall Off My Credit Report?

Be aware, however, that credit report exclusion prevents the CRA from including the adverse item in normal credit reports they issue.

It does not delete the information from your credit file.

Credit report exclusion is not absolute, and under the limited conditions set forth in FCRA 605(b), a creditor can request and obtain a credit report that includes information that has normally become excluded.  The most common situation would be if you apply for credit in the amount of $150K or more, the prospective creditor could still request and receive a credit report that shows the normally excluded information.

 

If a mortgage underwriting process involving a loan for $150K or more asks for disclosure of any unpaid debt, they could still become aware, and could still obtain a full-file credit report that includes the otherwise excluded information

Message 7 of 10
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Valued Contributor

Re: When Will Defaulted Mortgage Fall Off My Credit Report?

Robert, you are always such a wealth of information and very much appreciated! I was not aware that a creditor could pull a file that included excluded information. That is very good to know. Thanks again!
Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Sept 2020: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $19.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $277K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 8 of 10
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Legendary Contributor

Re: When Will Defaulted Mortgage Fall Off My Credit Report?

It is rarely done as a matter of normal underwriting, but is possible........

Message 9 of 10
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Frequent Contributor

Re: When Will Defaulted Mortgage Fall Off My Credit Report?

Yes, I'm well aware this old info is still "in storage."  :-(   I am an ex-mortgage broker.  We never used credit reports to access old derogs.  That information was available to us in other databases, notably Fannie, Freddie, FHA, VA, and title searches. No one can hide a prior foreclosure from a lender.

 

I'm older now and can't foresee a need for any large loans.  And I never want to own property again. I want good credit again mostly for my psyche, and just in case something comes up.

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