Foreclosure on credit report after bankruptcy?

Question:

I filed bankruptcy two years ago, after my lender initiated foreclosure. According to the bankruptcy lawyer, having the mortgage included in the bankruptcy would avoid having a forclosure on my credit report. Recently I found that the lender is still reporting the loan as a foreclosure. I disputed the item, and got back a reply stating, "This creditor has
verified to Equifax that the current status is being reported correctly". Am I correct in thinking that the item should be changed? If so, how should I proceed? If the item is changed to reflect inclusion in the bankruptcy, will it still show the payment history?

Answer:
Perhaps your attorney misled you.

Although a borrower previously surrendered property during a bankruptcy case, a mortgage lender’s reporting of a foreclosure to a credit reporting agency is not a report of inaccurate information in violation of the Fair Credit Reporting Act (FCRA).

The lender’s argument was that it did not report any inaccurate information. The surrender of the property in bankruptcy did not transfer title to the property. The borrower argued that the reporting was inaccurate because the credit report affected him personally, even though the foreclosure only affected the property. In this case, the court sided with the lender.

You might want to check FCRA rules more closely before you complain further.

Provide the CRA with a copy of the final bankruptcy action.

The payment history prior to the bankruptcy should stand.

Check with the bankruptcy attorney. He can probably provide a letter ot Equifax that will get the desired action.

Produce the details to them

Foreclosure on credit report after bankruptcy?

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