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6 Simple Steps to Report Current Mortgage Payments

6 Simple Steps to Report Current Mortgage Payments When Mortgage Was Not Reaffirmed In A Chapter 7 bankruptcy

The Problem:
My mortgage company won’t report my payments after my chapter 7 bankruptcy.

In retaliation for people filing chapter 7 bankruptcy and not reaffirming mortgage loans, lenders may not report current mortgage payments to the three credit bureaus (TransUnion, Experian and Equifax), and they are under no obligation to do so.

The Solution:
However, people who file bankruptcy can report current mortgage payments to the credit bureaus on their own.

Here is how:

  1. Request A Payment History
    You can request a payment history from your mortgage company, which the mortgage company is required by law to provide you once per year free of charge.
  2. File A Dispute
    You then file a dispute with the three credit bureaus, attaching a copy of the payment history.
    Here is a sample letter.
  3. Bureaus have 30 Days To Verify
    The credit bureaus are required to verify the accuracy of the debt with the mortgage company within 30 days.
  4. Mortgage Company’s Response
    At that point, the mortgage company can either, (a) remain silent and then the credit bureau must accept the information provided by you; or (b) accurately report the information. The mortgage company would find it difficult to explain an inaccurate payment history it prepared.
  5. Next Steps
    You will need to repeat this process on a regular basis to update your information.
  6. Record Keeping
    Additionally, you should keep the payment history, since you can be provided it to lenders when applying for new credit.

Not reaffirming a mortgage in a chapter 7 bankruptcy is not always a bad thing and in some cases is the best option. However, it does not have to mean your credit suffers. Take some time to get the credit you deserve for continuing to make your mortgage payments.

Additional Resources:

 

www.ftc.gov

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About Bradley Covey

Bradley Covey is an Illinois bankruptcy attorney helping individuals and businesses file Chapter 7 bankruptcy and Chapter 13 bankruptcy in Kane County, DuPage County, Kendall County and Will County, Illinois. Brad attended SIU undergrad and NIU College of Law. Brad served in the military at Ft. Stewart, Georgia and Ft. Sill, Ok as a Field Artillery Officer. Brad later served in the Illinois National Guard as a Major.