Credit report shows account paid/closed, can they collect?

[bnk1444]

What is the name of your state (only U.S. law)? Ohio
My credit report shows my second mortgage as transferred/closed/never late. It was not paid off, but every time we called to set up payments they couldn't find our account. Now they are threatening foreclosure? Do we have any legal standing since it has been reported as paid since 2008?

 

[justalayman]

Where did you see it was reported as paid? You said it was shown as transferred/closed. That’s not paid.


Is the entity suing for foreclosure the same as your original lender?

 

[bnk1444]

the status on the credit report says transferred/closed/never late. Original balance 40,000 balance -. it is with the original lender, but when speaking to them they claim at some point it went to another bank and is now back with them. It shows monthly payment as $0

 

[justalayman]

the status on the credit report says transferred/closed/never late. Original balance 40,000 balance -. it is with the original lender, but when speaking to them they claim at some point it went to another bank and is now back with them. It shows monthly payment as $0

Well then defend the foreclosure with your proof the loan is paid off.

Apparently at some point you simply stopped paying. You surely had to be aware the loan wasn’t paid in full. Why would you just stop paying if there was a balance outstanding?

 

[bnk1444]

we filed for bankruptcy in 2009 with the intention to reaffirm it. Once everything the bankruptcy was complete, we would call them to make a payment, only to be told they either couldn't find our account or they would call us back but they never did. Over they years we have called to make payments, but they always said there was no account to apply it to. Even now we said we will make payments, but they are saying we don't qualify for a modification and they will call us back. Each time there is communication via phone it is us initiating it.

 

[justalayman]

we filed for bankruptcy in 2009 with the intention to reaffirm it. Once everything the bankruptcy was complete, we would call them to make a payment, only to be told they either couldn't find our account or they would call us back but they never did. Over they years we have called to make payments, but they always said there was no account to apply it to. Even now we said we will make payments, but they are saying we don't qualify for a modification and they will call us back. Each time there is communication via phone it is us initiating it.

Well you might have started with that information.

If you filed for bankruptcy you can’t be held liable for the debt BUT that doesn’t mean you get to keep the house and not pay for it. They could not make efforts to collect on the balance though. That would be a violation of the bankruptcy laws.

If you want to keep the house you’re going to have to pay for it. If you don’t, the lender will foreclose and take the house. It’s beyond a modification. They want their money or the house apparently.


Why didn’t you just keep making payments?

 

[LdiJ]

Well you might have started with that information.

If you filed for bankruptcy you can’t be held liable for the debt BUT that doesn’t mean you get to keep the house and not pay for it. They could not make efforts to collect on the balance though. That would be a violation of the bankruptcy laws.

If you want to keep the house you’re going to have to pay for it. If you don’t, the lender will foreclose and take the house. It’s beyond a modification. They want their money or the house apparently.


Why didn’t you just keep making payments?

That is probably accurate, but I think it would be best for the OP to get a consult with their previous bankruptcy attorney if possible, or another bankruptcy attorney if not possible to consult with the original one.

 

[justalayman]

That is probably accurate, but I think it would be best for the OP to get a consult with their previous bankruptcy attorney if possible, or another bankruptcy attorney if not possible to consult with the original one.

While I, personally, don’t see a bankruptcy attorney being of benefit, there are some issues AN attorney may be able to help them with. In the end, if they didn’t (and don’t now) pay, they will lose the house. The cost to keep it could be negotiable though and op may be able to stall the foreclosure while seeking financing to pay what is agreed upon.

 

[LdiJ]

While I, personally, don’t see a bankruptcy attorney being of benefit, there are some issues AN attorney may be able to help them with. In the end, if they didn’t (and don’t now) pay, they will lose the house. The cost to keep it could be negotiable though and op may be able to stall the foreclosure while seeking financing to pay what is agreed upon.

Their bankruptcy attorney will know exactly what was the status of the loan in question in relation to the house, was in relation to the bankruptcy. If their bankruptcy attorney is not available another bankruptcy attorney will be able to find that information.

 

[justalayman]

Their bankruptcy attorney will know exactly what was the status of the loan in question in relation to the house, was in relation to the bankruptcy. If their bankruptcy attorney is not available another bankruptcy attorney will be able to find that information.

The problem though is that if it was reaffirmed, op didn’t pay for 9 years. To avoid foreclosure one must pay on the loan


If it wasn’t reaffirmed, op didn’t pay on it for 9 years. To avoid foreclosure one must pay on the loan



I can’t think of a possibility that would allow the op to not pay on the loan and not be foreclosed on.

Regardless what kind of attorney op seeks, unless he is willling to walk away without doing anything, he needs to get to an attorney or some sort ASAP.

 

[LdiJ]

The problem though is that if it was reaffirmed, op didn’t pay for 9 years. To avoid foreclosure one must pay on the loan


If it wasn’t reaffirmed, op didn’t pay on it for 9 years. To avoid foreclosure one must pay on the loan



I can’t think of a possibility that would allow the op to not pay on the loan and not be foreclosed on.

Regardless what kind of attorney op seeks, unless he is willling to walk away without doing anything, he needs to get to an attorney or some sort ASAP.

Yeah, but neither of us are bankruptcy attorneys and neither of us know exactly what the status of the loan was in relationship to the bankruptcy.

It would be irresponsible of us NOT to recommend that the OP consult with their bankruptcy attorney.

 

[justalayman]

Yeah, but neither of us are bankruptcy attorneys and neither of us know exactly what the status of the loan was in relationship to the bankruptcy.

It would be irresponsible of us NOT to recommend that the OP consult with their bankruptcy attorney.

I shall now quote my children’s statement made when they were much younger; a statement that I found so abhorrent I have endeavored for decades to seek some less reprehensible replacement but alas, in its simplicity it makes a statement that just refuses all attempts of rebuttal and as such is the perfect response to the statement made;


Whatever Ldij, whatever.

 

[Taxing Matters]

I can’t think of a possibility that would allow the op to not pay on the loan and not be foreclosed on.

I can think of several possibilities where that might occur. They are not common, but they do happen. All the specific facts of the 2nd mortgage lien, what happened in the bankruptcy, and what has happened since matters and we don’t have that information. Getting the information on exactly what happened in that prior bankruptcy would be useful information to have and if the OP does not have it then a call to the attorney that handled it would be a good idea in case that attorney still has it. Then he/she ought to get a copy of the deed, all the mortgages that had been on the home any other liens, and what the lender claims is the current balance owed and meet with a lawyer to sort out his/her options.