Contesting Derogatories when the Reporting Company is Out-of-Business

[Anonymous]

In 2005 I got a mortgage from First Franklin's Home Loan Services, Inc.  I had a couple late payments in 2008.  I got current. I stayed current ever after.

Sometime in 2009-2010, my mortgage was purchased by Bank of America.  First Franklin/Home Loan Services subsequently went out of business.

I sold my house in 2012.  I relocated.  I am considering purchasing again.

A recent pull of my credit report shows that Home Loan Services reported several 60- and 90-day late payments, and that the mortgage at one point went into foreclosure status.  The amount of late payments seems greater than I remember, and I certainly feel that I would recall if they started foreclosing on my house.  Unfortunately, I have no documentation from back then.  My credit is now good, although multiple late payments and a foreclosure status can't look good (even if it was almost  years ago) if I do apply for a new mortgage.

I called Bank of America to request documentation, and they said they had nothing related to the mortgage before they purchased it.

So, I'm thinking I should dispute the information reported by Home Loan Services.  The credit entries in question list them, not Bank of America, as the lender.  Bank of America started reporting an enitrely new tradeline when they took over the loan.

But since Home Loan Services is no more, do I send the dispute letter to the (now defunct) address listed on the credit report, just to document my discpute process?  Do I send it to the CRAs?  Do I send it to Bank of America, knowing they purchased the loan (and even though they claim to have no pertinent information)?

Of course, in a year or so, the Home Loan Services derogatories will drop off.  I don't have an immediate need to purchase - although we really like where we reloacted to, I've been at my job for a good length of time (current job for 2 years, same industry for 15+ years), I'm making and saving good money, rent is going up, and we definately notice home prices going up.

Any thoughts would be appreciated.

[suliabryon]

I'm sure someone here more knowledgable than me will reply, but at least on the number of late payments I might have some insight. A friend of mine paid 3o days late on her condo once, and then caught up - or so she thought. several months later, she pulled her credit for something and found out that late payment had rolled from month to month, because of how the mortgage company credited her payments. I'm not exactly clear on the details. Maybe she unintentionally skipped a payment, but the gist is, that 30 day late happened month after month, when she thought it was a "one time" occurrance. Her credit was screwed up for a long time. 

Also, our mortgage company accidentally credited our payment as only .30 once, instead of the $1450.30 I had written the check for. We had no idea anything was wrong until our payment went "30 days late" and they sent us a "do you need help/you are in danger of foreclosure" packet in the mail. Obviously in that instance they fixed everything and nothing got reported as late, but I don't think they waste too much time with foreclosure proceedings. I feel like I've heard somewhere that 3 months is the limit before they start something like that, and if you have 120 days late on your credit report, that would definitely qualify. It sure seems like something you'd remember if it had happened though. 

[Anonymous]

Thanks for the insight, sulia.

Does anyone have any thoughts or adivce as to where I should send a dispute (validation ?) letter, since Home Loan Services is no longer in business?

[Anonymous]

Hi - I am in the same boat looking at my credit reports now.

Did you ever get anywhere or any info on this???  This company was AWFUL to deal with - their computers locked me out of making any payments before month end and for MONTHS I tried paying any no single person would take my money........until I got in touch with HopeNow and explained the situation.  Simply amazing how one single phone call from Hope Now with me on conference and 'suddenly' this company was spontaneously able to take my payments to bring the account current.

Never realized it was all reported wrong too until I just started pulling reports.  This all dates back to 2008 but then they seem to have carried over MULTIPLE false lates into 2009 on the CRAs.

[Anonymous]

I would send any disputes to the CRA's