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Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

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dksnj
Member

Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

My mortgage loan maturity date was scheduled for February 2021 and there would have been a balloon payment due at that time. I knew I would be unable to make the large payment so I reached out to my mortgage company 6 months prior to see what my options were.  I was approved for a loan modification to extend the maturity date for 5 years to March 2026. I was put on a trial payment plan for 6 months (Feb 2021 - July 2021). All of these payments were made on time and the modification became permanent. During this time, my CRs showed 'Data Unavailable' for the months of the trial payments.  I messaged my mortgage company in  2022 asking to update the trial payments to reflect current, but they replied it was 'reported correctly and no updates would be made'. All my payments prior to the modification and after were all reporting current.

 

Fortunately, I was able to pay my mortgage off early and made the final payment last month. Today I receive a credit notification that I have a recent late payment. I pull my Experian and is shows my mortgage tradeline as paid/zero balance and the following:

 

3/21: 30 days late
4/21: 60 days late
5/21: 30 days late
6/21: 60 days late
7/21: 30 days late

 

I called my mortgage company and after going back and forth with a couple of different people, they told me this was reporting correctly. I asked why after almost 3 years was my info changed from data unavailable to 60 & 30 day lates.They claimed they don't change historical data.  Of course, my score plummented 58 points. Do I have any recourse (dispute the lates, goodwill to reverse back to 'data unavailable', etc)? Or are they correct.

Message 1 of 8
7 REPLIES 7
ShanetheMortgageMan
Super Contributor

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

Back in 2009 or 2010 I read that if you were current at the time your modification begun, and you made all payments as agreed per the modification agreement (trial & permanent), then the payments shouldn't be reported as late.

 

When they told you on the phone that the payments were reporting correctly as 30-60 days late, did you ask how that would be when you paid the required amount?  I'd think that'd stump them and would be grounds for further research on their part.  An internet search of "how should mortgage payments report to credit during a trial modification" came up with several law offices that said it's an error if they reported you late if payments were made as agreed, so if you don't get anywhere in your own conversations then the next step I'd take is to submit a complaint with the CFPB and if that doesn't work you may want to consider getting a credit attorney that specializes in these cases.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 8
dksnj
Member

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

Thanks for the response.

 

I repeatedly told both reps I spoke with that during the trial period I was required to call in and make the payments with a live person. Fortunately, I kept a detailed log with date/time I called, whom I spoke with, date of payment and confirmation number. They just kept telling me it was reporting correctly and I must have been delinquent at some point because they cannot modify a loan that is current. I again told them the only reason for the mod was to extend the maturity date, to because I was unable to make my monthly payment. It just really felt like they didn't have an answer, especially when I told them I asked a year after the trial payment why it was reporting as data unavailable.

 

I am going to take your advice and file a complaint. Luckily I have a legal plan through my work benefits, so if need be, I'll go that route as well. Just very frustrating.

 

 

Message 3 of 8
ShanetheMortgageMan
Super Contributor

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late


@dksnj wrote:

They just kept telling me it was reporting correctly and I must have been delinquent at some point because they cannot modify a loan that is current.

 


"Let's find out when you think I was delinquent.  Which month/year payment was that?" would be my response.  Sounds like they'd then either have to research that or admit that you weren't delinquent.  Not sure how long you've been at it for, but I've had to help client's mortgage lenders resolve incorrect reporting in the past and sometimes it could take a couple months of phone calls, letters and the like to finally get a proper resolution.  

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 8
dksnj
Member

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

Since my loan was paid off, I have limited visibility into my account. I'm going to request the mortgage statements for that period as backup, which will show no late payments or late payment fees applied. I do have a print out of my credit report showing no late payments prior to or after the modification. Thanks again for your help. I'll give an update when I have one.

Message 5 of 8
dksnj
Member

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

Small update - disputed with Experian last night. Just received results and they reverted back to 'data unavailable' Smiley Happy  Waiting on Equifax and Transunion.

Message 6 of 8
madmann26
Valued Contributor

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

Having went through my own loan mod process last year, they're full of crap.

 

Almost a year later, I have not had any lates tacked on/updated/whatever.

 

Mine wasn't a balloon payment but I would think the basics are the same.

Current FICO 9 Scores



Message 7 of 8
dksnj
Member

Re: Loan modification trial payments - CRs changed from 'Data Unavailable' to 30, 60 days late

Yeah, it is BS. I could see if I had delinquencies/late payments leading up to the modification. The modification was only to extend the maturity date. Anyway, disputed w/all three credit bureaus and they all udpated and changed back to 'data unavailable'. Hoping I regain that 50 point score drop soon.

Message 8 of 8
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