CR question on Foreclosure Reporting

[theprat]

I have a foreclosed rental property in Georgia that was sold back to the bank and received a 1099A showing 100k owed but box 5 not checked. In Georgia, if they dont come after you for deficiency in 30 days, they cant come after you. It has now been 3 years. Anyways, it is showing up my credit report as a CO and the balance being that 100k and past due 100k 3 years later. It is also still reporting as a CO monthly on Equifax. Is there any way this can be correct. It was my understanding once sold that it should be reporting zero balance. I had 3 other rental properties foreclose as well at the same time and they are all reporting zero balances. I have contacted Equifax to dispute but the bank came back and verified all items. If this is incorrect, what should I do next?

David

[ShanetheMortgageMan]

I don't think credit reporting on this has to follow state guidelines on if they can come after you for a deficiency or not.  The guidelines for deficiency's probably just relate to them being able to get a judgment against you.  May want to ask the folks over in General Credit Topics or Rebuilding Your Credit.

[DallasLoanGuy]

credit attorney can answer your questions.... might be worth the money

[Teardrop]

---

@theprat wrote:

I have a foreclosed rental property in Georgia that was sold back to the bank and received a 1099A showing 100k owed but box 5 not checked. In Georgia, if they dont come after you for deficiency in 30 days, they cant come after you. It has now been 3 years. Anyways, it is showing up my credit report as a CO and the balance being that 100k and past due 100k 3 years later. It is also still reporting as a CO monthly on Equifax. Is there any way this can be correct. It was my understanding once sold that it should be reporting zero balance. I had 3 other rental properties foreclose as well at the same time and they are all reporting zero balances. I have contacted Equifax to dispute but the bank came back and verified all items. If this is incorrect, what should I do next?

David

---

David,

I'm dealing with something similar.  When were the foreclosures?  I spoke to about 3 attorneys and all of them told me it wasn't anything that they could help with as it is a legitimate debt.  And they could only intervene if it was an issue with it being reported after the 7 years.  Is this for a second trust mortgage?  Perhaps try sending a letter to Equifax with a copy of the 1099.  Also you might want to ask them that based on the 1099 you just want the debt to show 'close' and the late payments removed off the account.

[theprat]

They were all 3 years ago. The thing is they are reporting correctly on Exp and TU but not Equifax. I have sent a letter to the bank and Equifax this week so will see where that gets me. I disputed online to begin with but that seemed to be a waste of time and the bank just validated the information in a weeks time. I will let you know if I get anywhere with the process. It makes about a 25 point difference in my Equifax report with the balance reporting as past due. My bigger concern though is when I go get a mortgage will this be an issue.

David 

[mato01]

I have a similar situation. Did you ever get a answer?

[theprat]

I am not sure which question you are referring too....I called the bank directly and after many emails and calls they wouldn't do anything. I disputed with all three CRs and after three or four attempts the balance finally went to zero. To be honest, I think what happened is I got a lawyer friend to call the bank on my behalf and they realized that it should be zero and then reported it correctly. It took 6 months and countless attempts.

[StartingOver10]

Congratulations on getting it corrected to the right amount.

For others, you can also file a complaint with the CFPB and they will also work on your behalf to get it corrected (for those that don't have lawyer friends to help!). http://www.consumerfinance.gov/complaint/