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  1. #1
    Join Date
    May 2013
    Posts
    2

    Default Mortgage Not Reaffirmed and Credit Report

    My question involves bankruptcy in the state of: CA

    Let me begin by saying that we live in California, but we think that our problem falls under Federal statutes. In May 2009, we entered into a Home Affordable Modification Program (HAMP) with our mortgage servicer CitiMortgage. On August 01, 2009, we started the HAMP 3-Month Trial Plan. On Sep 14, 2009, we filed for Chapter 7 Bankruptcy Protection. On 03/04/10, our Chapter 7 Bankruptcy was discharged. On 06/10/10, we received the Home Affordable Modification Agreement.

    A recent review of our Credit Reports exposed errors associated with the reporting of this Mortgage.

    Experian (dated 02/11/2013) reported:
    • “Status: Discharged through Bankruptcy Chapter 7”
    o This is incorrect, this mortgage was not included in the Bankruptcy
    • “Date of Status: 03/2010”
    o This is incorrect, why should the “Date of Status” not be 01/2013 when it was “Last Reported: 01/2013”
    • “Last Reported: 01/2013”
    o This is correct
    • “Monthly Payment: $0”
    o This is incorrect, we have been making regular monthly payments
    • “Recent Balance: $0 as of 01/2013”
    o This is incorrect, this mortgage was not included in the Bankruptcy
    • “Recent Payment: $0”
    o “This is incorrect, we have been making regular monthly payments
    • Creditor’s Statement: Loan modified under federal government plan”
    o This is correct
    • Payment History: “60” days late for “NOV 2009”
    o This is incorrect per the Fannie Mae Service Guide Announcement 09-05R, this was during the HAMP Trial Period.
    • No Payment History reported after “MAR 2010” which is listed as “OK”
    o This is incorrect, we have been making regular monthly payments
    • Account History: “60 days past due as of Nov 2009”
    o This is incorrect per the Fannie Mae Service Guide Announcement 09-05R, this was during the HAMP Trial Period.
    • Account History: “Debt included in Chapter 7 Bankruptcy on Mar 04,2010”
    o This is incorrect, this mortgage was not included in the Bankruptcy

    TransUnion (dated 02/11/2013) reported:
    • “Balance: $0”
    o This is incorrect, this mortgage was not included in the Bankruptcy
    • “Date Updated: 12/31/2012”
    o This is correct
    • “Last Payment Made: 12/16/2012”
    o This is correct
    • “Pay Status: >Account Included in Bankruptcy<”
    o This is incorrect, this mortgage was not included in the Bankruptcy
    • “Date Closed: 04/30/2011”
    o This is incorrect, “Last Payment Made: 12/16/2012”
    • “Remarks: >CHAPTER 7 BANKRUPTCY<”
    o This is incorrect, this mortgage was not included in the Bankruptcy
    • Payment History: “X” (Unknown) for “11/2009
    o This is incorrect per the Fannie Mae Service Guide Announcement 09-05R, this was during the HAMP Trial Period.
    • Payment History: “N/R” (Not Reported) or “X” (Unknown) for the period of “04/2011” thru the end of the reporting period (“11/2012”)
    o This is incorrect, “Last Payment Made: 12/16/2012”

    Equifax (dated 03/04/2013) reported:
    • Listed under “Mortgage Accounts - Closed Accounts” & "Negative Accounts - Closed Accounts”
    o This is incorrect, we have been making regular monthly payments
    • “Date Major Delinquency First Reported: 09/2009”
    o This is incorrect per the Fannie Mae Service Guide Announcement 09-05R, this was during the HAMP Trial Period.
    • “Date of First Delinquency: 08/2009”
    o This is incorrect per the Fannie Mae Service Guide Announcement 09-05R, this was during the HAMP Trial Period.
    • “Current Status: INCLUDED IN BANKRUPTCY”
    o This is incorrect, this mortgage was not included in the Bankruptcy
    • “Comments: Bankruptcy chapter 7, Fannie Mae account”
    o This is partially correct, this mortgage was not included in the Bankruptcy, it is a Fannie Mae account
    • Most of the entries for the report are blank
    o i.e.: Date of Last Payment, Balance, etc.

    We contacted CitiMortgage and stated;

    We were current on our mortgage prior to starting the HAMP application.

    During this time period we were current on our mortgage payments, per the HAMP Trial Plan.

    Per the Fannie Mae Service Guide Announcement 09-05R, Credit Bureau Reporting:

    “In accordance with the Servicing Guide, Part VII, Section 107: Notifying Credit Repositories, the servicer should continue to report a “full-file” status report to the four major credit repositories for each loan under the HAMP in accordance with the Fair Credit Reporting Act and credit bureau requirements as provided by the Consumer Data Industry Association (the “CDIA”) on the basis of the following:”

    “For borrowers who are current when they enter the trial period, the servicer should report the borrower current but on a modified payment if the borrower makes timely payments by the 30th day of each trial period month at the modified amount during the trial period, as well as report the modification when completed.”

    Their response was to add “Consumer Disputes This Account Information” to the Credit Reports.

    Further Contact with CitiMortgage revealed that the Mortgage File was still in the hands of the Bankruptcy Dept. They claimed that the Mortgage had not been reaffirmed before the Bankruptcy was discharged. Upon attempting to contact our Bankruptcy attorney, we discovered that he had retired. When we finally did locate him, we found that his files were no longer available and that he could not determine if the Mortgage had been reaffirmed.

    Our research indicates that the only method to reaffirm the Mortgage at this point, is to have the Bankruptcy reopened. Our research further indicates, it might be better not to reaffirm the Mortgage, that there might be benefits to not reaffirming the Mortgage.

    Maybe we are wrong, but we assume that having a long term Mortgage reported in good standing will help in our credit recovery. But that is pure speculation, we doubt that even Steven Hawking could understand the black art that is Credit Scoring.

    Our question is, how do we get CitiMortgage to report this Mortgage as required by Fannie Mae Service Guide Announcement 09-05R.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Mortgage Not Reaffirmed and Credit Report

    If you believe you have incorrect information on your credit report, dispute the entry with the Credit Reporting Agency (CRA).

    If you believe your lender is reporting information inaccurately, or if it confirms to the CRA what you believe to be incorrect information, contact your lender and ask them why they haven't corrected the information. If you cannot get what you believe to be an adequate response, explore your rights (including the possibility of litigation) under the Fair Credit Reporting Act (FRCA).

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