Mortgage company reporting false info to credit bureau

[8lu8llz]

What is the name of your state?Currently living in AZ but property was in Indiana

...on a paid and cancelled mortgage note. My mortgage was PAID and cancelled in Feb of this year. (2005) Yet as of 7/11/05 the bank reported it to the credit bureau as a FORECLOSURE. The note in my hand is stamped PAID and Cancelled yet for 7 months they continued reporting my loan in a delinquent status AND then finally in a foreclosure. I am just finding this out as I am in the process of buying another home. Do I have any legal recourse? This has DESTROYED my credit score over the last year. And I am just finding out about this.

HELP.

Tony

[HomeGuru]

Originally Posted by 8lu8llz

What is the name of your state?Currently living in AZ but property was in Indiana

...on a paid and cancelled mortgage note. My mortgage was PAID and cancelled in Feb of this year. (2005) Yet as of 7/11/05 the bank reported it to the credit bureau as a FORECLOSURE. The note in my hand is stamped PAID and Cancelled yet for 7 months they continued reporting my loan in a delinquent status AND then finally in a foreclosure. I am just finding this out as I am in the process of buying another home. Do I have any legal recourse? This has DESTROYED my credit score over the last year. And I am just finding out about this.

HELP.

Tony

**A: you are not telling us the complete story. The property was under foreclosure correct, then you paid the loan off.

[8lu8llz]

The property was NOT under foreclosure. The sale was approved in December 2004 and processed February 2005.

[HomeGuru]

Originally Posted by 8lu8llz

The property was NOT under foreclosure. The sale was approved in December 2004 and processed February 2005.

**A: then what is the story with the foreclosure?

[8lu8llz]

According to my current account history (there should be NONE because the note was paid and cancelled) It shows that as of 7/11/05 a foreclosure was processed on my account. And that was what was reported to the credit bureau in July and continues to be reported. YET the titlework and sale was all processed in FEBRUARY.

[HomeGuru]

Originally Posted by 8lu8llz

According to my current account history (there should be NONE because the note was paid and cancelled) It shows that as of 7/11/05 a foreclosure was processed on my account. And that was what was reported to the credit bureau in July and continues to be reported. YET the titlework and sale was all processed in FEBRUARY.

**A: you still are not telling us the complete story and remain to beat around the bush and give us tidbits. Thank you for posting and good luck.

[8lu8llz]

What full story do you want. I sold my house in february. After the titlework cleared apparently my mortgage company continued to report a zero balance account to the credit bureaus as an open account. Then this "zero" balance account was reported as a foreclosure long after the sale of the house. I came here for advice, not for some "guru" to accuse me of not telling the whole story. If I wanted to not tell you the whole story I wouldn't have posted. SO glad you know the story. BTW who is this US you are referring to since you are the only one responding?

[LindaP777]

Originally Posted by 8lu8llz

What full story do you want. I sold my house in february. After the titlework cleared apparently my mortgage company continued to report a zero balance account to the credit bureaus as an open account. Then this "zero" balance account was reported as a foreclosure long after the sale of the house.

Call that lender immediately and demand and explanation. Ask to speak to a representative from the mortgage department, then their legal department. Tell them you want it resolve TODAY, with letters immediately going out to the 3 major the credit reporting agencies, with copies going to you.

On your current credit report, does the account show a "zero" balance? If not, what does it show? What I don't get is how can they "foreclose" on an account with a zero balance? If you are dealing with a current loan officer, they may be able to point you in the right direction on how/where to get this cleared up.

Please post back and update us on the status.

[ice5146]

Did you happen to have an open Line of Credit that you didn't consider a mortgage after February 05? Look on your credit report at the Public Records section and see what month the FCL was filed at the courthouse. If it clearly states the Lender's name on your report with an outstanding balance and Foreclosure then obviously all you need to do is contact the Lender's Loss Mitigation Dept and fax them your HUD-1 Settlement Statement and Dispute. It will take them a day to report to the Bureaus and you can even demand they fax you a letter on their Letterhead so you can forward to the Bureaus yourself to dispute within 30 days. 9 out of 10 times this issue is due to the fact that you have a LOC that's delinquent.

[8lu8llz]

Originally Posted by ice5146

Did you happen to have an open Line of Credit that you didn't consider a mortgage after February 05? Look on your credit report at the Public Records section and see what month the FCL was filed at the courthouse. If it clearly states the Lender's name on your report with an outstanding balance and Foreclosure then obviously all you need to do is contact the Lender's Loss Mitigation Dept and fax them your HUD-1 Settlement Statement and Dispute. It will take them a day to report to the Bureaus and you can even demand they fax you a letter on their Letterhead so you can forward to the Bureaus yourself to dispute within 30 days. 9 out of 10 times this issue is due to the fact that you have a LOC that's delinquent.

No open line of credit. FCL was filed in July of 2005. There is a zero balance. HUD 1 Settlement is ON its way. Contacted LMD at National City where the loan was held and they have been NO help.

Do I have no legal recourse? I mean for months now this has been appearing as derog on my credit which portrays me as a negative credit risk. That to me is a legal issue.... SDuggestions?

[ice5146]

Just a shot in the dark here. When you paid National City off in Feb, is there a slight chance that Title Company who forwarded the Funds to National City may not have paid them enough? This could be due to a Payoff Demand Statement showing one balance due when in actuality the real payoff may have been a higher amount? Maybe the Title Company didn't pay them enough and they contacted you for the remaining balance but you maybe ignored it thinking you were ok?? That's what is coming to mind here.

[8lu8llz]

There was no balance left after payoff. National city accepted the payment as a full balance and since the closing date there has been NO balance and no communication from NCM. ALso, I have left NUMEROUS messages with the LMD at NCM and NEVER have I received a call back.

[ice5146]

Contact the Office of the Comptroller of the Currency @ 800-613-6743. This office is w/ Dept of Financial Institutions in Indiana. These guys will should be able to get this issue rectified ASAP. Good luck.

[8lu8llz]

Now HomeGuru THAT is advice.

Thanks Ice.

Will do and will inform.

[bdancer]

This might seem like a stupid question, but have you disputed the foreclosure info with the credit reporting agencies?

I paid off a boat loan and a year later it was showing as being 120 days (and counting) past due. I disputed it with the two credit reporting agencies showing the error and both corrected it within a couple weeks.