When 7 Years Are Up on a Foreclosure

[Anonymous]

So, my husband and I had 2 homes foreclosed on in 2010. It was a bad year....

Anyways, I have been waiting patiently for those to expire. Now that they are about 9 months from being 7 years from 'last payment' I want to be sure I can depend on them being removed. 

Firstly, how do I make SURE that they are removed then? Do I mail or email the agencies on the expiration date, and tell them that those are the dates and that they should be removed?

Anybody have any experience with this?

Also, we had a short sale on another home that year. How does a short sale differ?

I have learned a lot in these last 7 years and would be happy to share my stories. I removed quite a few CC balances by just asking for around 40% off the total and paying them in full, and getting them to agree to remove the mark from my credit report. Also, I had some hosptial bills removed using the same tactic.

We were embezzled from an employee and had to sell our company in 2010, so they took that into consideration.

[Anonymous]

I can't answer about a short sale, but as for the foreclosure it's 7.5 years from the DoFD (Date of First Delinquency) not DoLA (Date of Last Activity). You'll have to look at your actual reports from the credit bureaus themselves not a monitoring site to get that date. Have you pulled your reports recently?

[RobertEG]

If the foreclosure or short sale resulted in a loss by the creditor,  it is covered under FCRA 605(a)(4), with the date thus established under FcrA 605(c) as no later than 7 years plus 180 days from the date of first delinquency.

The 7 plus 180 from DOFD only applies if the creditor took an equivalent to a charge to profit and loss.

Otherwise, the adverse reporting would be covered under section 605(a)(5), with an exclusion date of 7 years from the date of the adverse item.

Did either result in a "charge to profit and loss, or its equivalent"?

[Anonymous]

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@Anonymous wrote:

So, my husband and I had 2 homes foreclosed on in 2010. It was a bad year....

Anyways, I have been waiting patiently for those to expire. Now that they are about 9 months from being 7 years from 'last payment' I want to be sure I can depend on them being removed. 

Firstly, how do I make SURE that they are removed then? Do I mail or email the agencies on the expiration date, and tell them that those are the dates and that they should be removed?

Anybody have any experience with this?

Also, we had a short sale on another home that year. How does a short sale differ?

I have learned a lot in these last 7 years and would be happy to share my stories. I removed quite a few CC balances by just asking for around 40% off the total and paying them in full, and getting them to agree to remove the mark from my credit report. Also, I had some hosptial bills removed using the same tactic.

We were embezzled from an employee and had to sell our company in 2010, so they took that into consideration.

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Also, I would like to add more to what Robert states. First, 2010 sucked for a lot of us. Me included, we all learn. You didn't mention if you have or are planning to get another mortgage. If you are, there may be more that you need to know, legally speaking. Let me explain based on my situation. My DOFD on my mortgage is 1/2010. TU has it stated to fall off on 1/2017. I assume the other CRAs are the same. I am not sure why it's not set to fall +180 days, but that is what the CRAs have listed, TU specifically states that is the fall off date. So, I went to see a LO, and called a couple others. I advised them of my situation and that I was going to wait until spring of next year to get pre-aproved for a mortgage and what should or shouldn't I do NOW that would help or hurt me. Well, I found out that, by law, I have to provide them with a copy of the foreclosure deed, which is public record. I have to show that the house was actually purchased by another lender/person and that I still wasn't legally tied to it. Also, by law, I have to disclose this for 7 years from the date the deed changed hands from me (in foreclosure) to the new owner. So that date for me is 3/2011. Many peoples homes went unbought for much longer than that. I know the OP didn't mention getting a mortgage. But for others reading, this may come handy.  

[Anonymous]

In reference to your mortage app, my understanding is that the 1003 asks both the 7 year question as well as an "e" question, an open ended have you had a loan that you are directly or indirectly responsible for go into foreclosure.  So even after 7 years, you would still have a YES answer in that disclosures section as there is no time limit stated in that question e.  It wouldn't be on the report, but you have to rat yourself out.

"e.  Have you directly or indirectly been obligated on any loan of which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment?"

[RonM21]

You also can possibly aske the bureaus for an early exclusion beginning about 6 months out. That is usually with TU, if they'll do it. The other 2 tend to hold off a bit longer before considering a EE.

[Anonymous]

I am not sure if they were a "charge to profit and loss, or its equivalent". How can I find that out?

[Anonymous]

Thank you so much for your help! So, can I just call the CRA's and ask them the exact date they will fall off my CR?

[Anonymous]

I have not pulled my reports lately. Just going to creditkarma.com and view them there. 

Where do you recommend pulling all three reports?

[Anonymous]

For a charge accounting treatment, you should have received a 1099-C from the bank. This would apply to all debts whether they be mortgages or credit card negotiations.  Any time a debt is cancelled, you get the 1099-C (if the bank wants to write off the loss which they always do).

Ultimately the Debt Relief Act of 2007 there are several exemptions to that you end up not owing income tax on the 1099-C amount but you should have received it regardless.

You can get all 3 reports free (free once per year) from annualcreditreport.com and they come directly from the bureaus (you actually do the request 3 times, once for each CRA).