1099-C and balance reporting issues!

[growing123]

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@Anonymous wrote:

I am just realizing that my wife's foreclosure and the home equity line attached to it is also still reporting a balance. I app'ed for a CLI and they came back with a denial citing a recent delinquincy. I've been managing her finances since the event, and pay everything on time but it seems that the OC is still dinging her every month with a balance despite having sent a 1099c in 2012 immediately after the charge off. We paid the taxes on it. Could someone share the suggested format of such a dispute with the OC, the CRA or the CFPB? Im thrilled to think that I might be able to get this reduced to just a past derogatory that wont dog us every month for six more years. 

Thanks

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My foreclosure was showing a past due balance only on my EX report so I disputed it with them and it was changed to $0.  Which CRA is reporting the balance? 

[Anonymous]

Equifax and transunion both have two tradelines that add up to the one 1099c amount. Experian shows the mortgage as past due only, but the line as charge off/ paid zero balance. The lender issued only on 1099c but combined both amounts so I hope that doesnt make it more difficult to resolve. I did online disputes last night, excited at the prospect of getting those cleared and then sent manual forms this morning to all three along with the OC politely addressing the past due status as a mistake and asking them to correct it. Ive not found many people online who have been successful with this but am hopeful. Im okay with the charge off but the constant past due entries make it impossible for her to get any new credit even with all of her actual accounts being paid impeccably.

[Anonymous]

It was a small bank who issued the 1099c out of kindness to begin with so maybe they will be easy to work with... I hope...

[growing123]

Good luck!  Let us know how it goes!

[Anonymous]

Growing123, is it resolved with a simple dispute, on the first go around?about how long ago? Thanks for the input, it's encouraging. I've read a lot of posts where the OC won't budge. I will definitely report back.

[growing123]

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@Anonymous wrote:
Growing123, is it resolved with a simple dispute, on the first go around?about how long ago? Thanks for the input, it's encouraging. I've read a lot of posts where the OC won't budge. I will definitely report back.

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I disputed the past due balance with EX and the dispute process went very smoothly with them, success on the first try.  It was changed to $0 and the rest of the TL was left alone.  This was back in Feb of this year. 

[growing123]

and it sounds like your bank is going to be easy to work with if need be.  It's not like we're asking for the TL to be deleted (but i would take that in a heart beat!!), instead, we just want it to report correctly. 

[Anonymous]

I talked with a rep yesterday at the bank who gave me contact information for the "asset recovery specialist" and said that is who I should address my correspondence to. I'm going to wait and see how the disputes turn out first, but actually contacting them is a little scary considering what Ive read about lenders ammending the 1099's. Thats probably not likely though. Is it too much to ask that they report zero balance AND wipe out the twenty or so 180+ late payments they have reported since the 1099 issuance? Thanks.

[wa3more]

Forget contacting any bank or creditor regarding 1099 reporting issues.

Send a copy of the 1099 with an ITS letter (Intent to File Suit) and tell them to update the balance to zero.

This worked for me.

[Anonymous]

I did contact the OC in addition to mailing in disputes to the CRA's. Experian deleted the trade lines within a week, transunion changed the balances to zero in about three weeks and surprise... Equifax changed their resolve by date and is still in process at going on almost a month now. Still waiting for Credit karma to update to see how much transunion score changes... Will report back. I'm pretty sure that the OC is working to update their reporting which would make sense that TU took about three weeks. Not sure how Ex would delete entirely so quickly and wonder if the OC will put the line back on there when they update their reporting...