Post Forclosure Charge Off

[redsting]

What is the name of your state (only U.S. law)? California

In 2007 I purchased a home with an 80/20 loan, both were for the purchase and both were classified as purchase money mortgage. Nothing was refinanced The house was underwater after the market crash. We needed to move and so we let the house go. After the foreclosure, the second lender (Green Tree) charged off the loan. Now they are pinging my credit by adding interest after the charge off about a year at a time by the look of it. They add activity and increase the amount charge (Adding interest I assume) to the account every year, by posting the CO on the account. Do I have any legal recourse to stop them considering its a PMM (Purchase Money Mortgage)

 

[justalayman]

have you contested the reporting as it is with the involved credit reporting agencies? That's where I would start.

 

[redsting]

have you contested the reporting as it is with the involved credit reporting agencies? That's where I would start.

I am going to. Outside of that though, are they allowed to do what they are doing and if not what can I do about it.

 

[tranquility]

The fact the loan might be a non-recourse one does not mean they can't report it on your credit.

 

[nanu156]

Your credit is already trashed. I would suggest you consult with a Bk atty about remedies available to you through bankruptcy.

From a lender point of view a bk wouldn't hurt your ability to borrow at this point (which likely is non-existent) so the bk would take care of the foreclosure debts still owed as well as clean anything else out and hopefully give you a fresh start. You would be looking at a similar time frame to become a credit worthy borrower after a BK as you are at present.

A bk atty will also be intimately familiar with the laws in your state about the collection of debts and reporting to credit agencies.

 

[justalayman]

The fact the loan might be a non-recourse one does not mean they can't report it on your credit.

yep. I blew it. I was thinking there was something in California law that might have helped the OP. Couldn't find what I thought was there.






I would still attempt the credit reporting agency route though. If the creditor does not verify the debt it has to be removed. You might get lucky.

 

[tranquility]

I remember meeting a "credit counselor" a few years ago. Now, he held no illusions about the difficulty of his work and he had a bit of a....casual nature about the morality of his role, the place he worked always did exactly that as the first step. Dispute the credit report. He said most creditors don't bother with answering the dispute as it really is just a cost to them and unlikely to result in any benefit. While I don't know the truth of his theory over the motivation, I suspected he had some experience on the reality of what happens.

 

[Mass_Shyster]

The fact the loan might be a non-recourse one does not mean they can't report it on your credit.

I don't think they can continue adding new charges and reporting those as newly unpaid. I know as far as a bankruptcy is concerned, that is considered an attempt to collect. I don't know if CA uses the same rules for Purchase Money Mortgages.

 

[nanu156]

annualcreditreport.com will allow you to pull and dispute items for free. Dispute it as an invalid debt, that is your best chance at removal. Although I am going to bet they will respond.

While you can dispute debts online, it is preferable to do it in writing. Reason is computer talks to comupter = few mistakes. Human opens envelope and does human process greater mistakes.

You can dispute a debt twice a year, anymore than that the agencies flag you and the debt due to frivolous disputes.

The trouble as I see it is that this person actually OWES the debt... Hence my suggestion of a BK atty.

Credit counseling is TERRIBLE, and as an FYI it appears on your credit report, lenders treat its presence the same as ch13 BK...