Installment loan mess

[Anonymous]

Does anyone know what the proper reporting on a closed installment loan for a timeshare would be?  After defaulting on the loan, I was contacted and because of financial trouble at the time, I was unable to catch up on the loan.  The title was returned and according to the creditor the property is listed as foreclosed on their records.

My credit reports shows the following:

Equiant Financial-closed account

 $578 past due

balance 14,500

The 14500 is still showing on my debt.  My understanding was the property title was returned to them and the 14500 debt would not be mine anymore.  I have contacted them and as of right now, the customer service agent had no clue what to tell me.  They shuffled me back and forth between the actual timeshare company and the company handling the loan.

The 14500 debt is killing our utilization.  Has anyone had an experience similar to this before?

I disputed the debt on my ex CR and it still has not updated.  Is there anything else I can do?

[llecs]

---

dianaisme wrote:

The 14500 debt is killing our utilization.  Has anyone had an experience similar to this before?

I can't speak to timeshares or the legal side of the title, sale, etc. I would assume that it reports as a mortgage account, rather than an installment loan, though.

However, this shouldn't be hurting utilization all that much. Check your reports and make sure that it is not reporting as revolving. If so, that needs to be fixed. Maybe it could be reporting as an installment loan. That also affects utilization but is factored separately from your revolving. The point change or differential is small in comparison.

If you were to order your MyFICO TU or EQ reports, maybe, just maybe on page 2 or 3 there will be a positive or negative comment about utilization. Compare your CLs to that.

[Anonymous]

I would pull a myFICO report to scrutinize exactly how the loan is being reported.

[Anonymous]

Thanks for your response.

Ok, I just spoke to the timeshare company and they are going to update it as zero balance and as a  foreclosure. 

How is this going to affect my score?  I'm at 548 now.  The first thing listed on myfico score report is high utilization.  So, I'm thinking not having this on my debt will help but the foreclosure will hurt.  But how much really since I have four CO from last year on there already?

Thanks!

Message Edited by dianaisme on 06-16-2008 05:22 PM

[Anonymous]

bump.............