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In December 2011, got foreclosed on.

It was a 2nd home in Tucson, AZ.

We "walked away" Remember those times?

We have and still live in CA. Same house, we have a mortgage on with B of A also.

The bank, B of A, never put a Foreclosure mark on our credit reports. Maybe due to the robo signing thing.

But, They never removed the mortgage from the credit report.

So, it shows we owe almost a half a million dollars, when we really owe 300K total.

I was just going to wait another year, however, I want to pay down my mortgage.

Maybe just wait and pay 5K extra to principal each month?

The mortgage is an ARM at 3.5%.

It is at 239K now going to P&I. Not an IO loan anymore.

I thought the SOL was 7 years.

Correct me if I am wrong.

TIA! 

 

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rated:
I have no idea what you are asking, and what's with the double spacing, for some reason I'm reading this post with a 'shatner' voice. Lots of pausing.

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forbin4040 said:   I have no idea what you are asking, and what's with the double spacing, for some reason I'm reading this post with a 'shatner' voice. Lots of pausing.
  
I type like this because it is easier to read for those on small devices.

At least it is for me.

That's okay if you didn't understand my question. Maybe I will get Lucky and one of the Mortgage Gurus

will see my thread and give me a sound reply. SOL= Statue of Limitations.

   

rated:
Not sure what your question is either...
"So, it shows we owe almost a half a million dollars, when we really owe 300K total."
Are you sure it was actually foreclosed? Have you logged onto the BoA account and checked? Last thing you want is a "surprise, we didn't foreclose so you owe us penalties, interest, and fees over the last five years totalling 200k".


"I was just going to wait another year, however, I want to pay down my mortgage."
I assume this means you want to pay down your current mortgage. You can do so, nothing stopping you.

"Maybe just wait and pay 5K extra to principal each month?"
If the same as above, then yes you can pay $5k extra each month (are we still talking about current mortgage?)

As far as the SOL, for CREDIT REPORT it comes off 7 years after last activity (usually date of last payment). For lawsuits it's state specific.

Again I'm not sure if the question was "should I pay down my current mortgage", or "should I pay down the old mortgage" or "should I just sit here and do nothing". Maybe you'll clarify or somebody else might be able to better decipher it.

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chatterweb said:   I thought the SOL was 7 years. Correct me if I am wrong.Have 7 years yet passed ?

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Sounds like BoA is biding their time until they go after the deficiency owed.

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chatterweb said:   In December 2011, got foreclosed on.

It was a 2nd home in Tucson, AZ.

We "walked away" Remember those times?

We have and still live in CA. Same house, we have a mortgage on with B of A also.

The bank, B of A, never put a Foreclosure mark on our credit reports. Maybe due to the robo signing thing.

But, They never removed the mortgage from the credit report.

So, it shows we owe almost a half a million dollars, when we really owe 300K total.

I was just going to wait another year, however, I want to pay down my mortgage.

Maybe just wait and pay 5K extra to principal each month?

The mortgage is an ARM at 3.5%.

It is at 239K now going to P&I. Not an IO loan anymore.

I thought the SOL was 7 years.

Correct me if I am wrong.

TIA! 

 


To answer your question.

Yes.

I remember those times.

rated:
Did you have two mortgages, or did you have two properties and one mortgage?

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SOL is the time they have to sue. I believe the 7 years OP is talking about is the credit reporting timeframe.

I have no clue what they are asking regarding the two homes or which one they have a question on.

rated:
We have and still live in CA. Same house, we have a mortgage on with B of A also. - What does this have to do with the property in AZ other than BofA being the lender on both properties?

The bank, B of A, never put a Foreclosure mark on our credit reports. Maybe due to the robo signing thing. Well, did you get any notices from BofA in 2011/2012 ?   That would have told you what they did with the AZ property mortgage.

But, They never removed the mortgage from the credit report.   Once again, did you get any notice from BofA ?  Mortgages automatically don't fall of the bureaus.  There is a fair credit reporting process (FCRA) that the bank has to follow.  What made you think that the mortgage would fall off the bureau if it's foreclosed on?

So, it shows we owe almost a half a million dollars, when we really owe 300K total.    That means you defaulted on your promise you pay them back the principal balance and unpaid interest which would be around $500k.  The fact that you walked away from the property doesn't mean that you walked away from your promise either.

I was just going to wait another year, however, I want to pay down my mortgage. Are you saying you want to pay down the principal balance on your CA property mortgage?  There is nothing preventing you from paying down the bal on the CA property. 

Maybe just wait and pay 5K extra to principal each month?   Wait for what?  Pay $5k extra to CA property mortgage?  If so, you can do that anytime.

The mortgage is an ARM at 3.5%.  I assume this is the rate on the CA property?  What does this has to do with the property in AZ?

It is at 239K now going to P&I. Not an IO loan anymore.  What this mean?

I thought the SOL was 7 years.    There is a lot more involved with SOL but the 7 year clock don't start ticking the moment you walked away from the property.

rated:
The OP is not as bad as y'all are treating it, stop being purposefully obtuse. Here, I'll lay it out for you:

OP had two houses, their primary home in CA and second home in AZ, both with mortgages from BoA. They walked away from the second/AZ home and BoA foreclosed. The mortgage for the second home is still on their credit report with no foreclosure mark (presumably shown as delinquent). Does OP need to be concerned about the inaccuracy of the credit reporting or should they just wait until the delinquent mortgage falls off in a couple of years? OP desires to make additional principal payments, given their situation is there any reason why they shouldn't?

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doveroftke said:   They walked away from the second/AZ home and BoA foreclosednon-primary, non-owner occupied ?

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A friend of mine also had a home foreclosed by BofA. Total debt owed at foreclosure auction was $550k, it was a primary residence in California, and original purchase money.

To all those moral people, no, in this case, the borrower does not owe anything to the bank after they have taken back the property. BofA actually did not too bad on this, slow as they were, it took them a full year to list it, values had gone up.. and they ended up selling for $625k.

Back to the original problem.

So, my friend recently wished to obtain new financing. Equifax shows the loan account as "active" with a $0 balance.
Transunion shows it as "closed" with a $550k balance.
The loan officer uses a combined credit report (pulls all 3 and merges the accounts), and, .. you guessed it.. the software merges those 2 into "active account with $550k owed" which naturally was a problem.

It took about 4 weeks to clear to that up, I think it involved disputing those accounts on the credit report.

rated:
Ok then OP go to creditboards to get your credit report accurate on the AZ home. The CA question has been answered.

rated:
doveroftke said:   The OP is not as bad as y'all are treating it, stop being purposefully obtuse. Here, I'll lay it out for you:

OP had two houses, their primary home in CA and second home in AZ, both with mortgages from BoA. They walked away from the second/AZ home and BoA foreclosed. The mortgage for the second home is still on their credit report with no foreclosure mark (presumably shown as delinquent). Does OP need to be concerned about the inaccuracy of the credit reporting or should they just wait until the delinquent mortgage falls off in a couple of years? OP desires to make additional principal payments, given their situation is there any reason why they shouldn't?

  But what does an old foreclosure have to do with paying extra towards the current mortgage?  If she wants to pay extra towards her mortgage, she should pay extra towards her mortgage - no one here can answer that for her.

The old mortgage will not fall off her report in a couple years.  Delinquent marks fall off after 7 years, she doesnt say if any delinquency is reported.  She has to dispute the account on her credit report as the balance being incorrect; the question should be if she should dispute it now, since a review risks it being updated with the foreclosure info.

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ptiemann said:   A friend of mine also had a home foreclosed by BofA. Total debt owed at foreclosure auction was $550k, it was a primary residence in California, and original purchase money.

To all those moral people, no, in this case, the borrower does not owe anything to the bank after they have taken back the property. BofA actually did not too bad on this, slow as they were, it took them a full year to list it, values had gone up.. and they ended up selling for $625k.

Back to the original problem.

So, my friend recently wished to obtain new financing. Equifax shows the loan account as "active" with a $0 balance.
Transunion shows it as "closed" with a $550k balance.
The loan officer uses a combined credit report (pulls all 3 and merges the accounts), and, .. you guessed it.. the software merges those 2 into "active account with $550k owed" which naturally was a problem.

It took about 4 weeks to clear to that up, I think it involved disputing those accounts on the credit report.


Legally the lender can go after the borrower for balance due on the note after the property is foreclosed on and auctioned off. However, most of the time the lender usually write it off as a loan loss. That's legal stuff, nothing to do with the moral.

rated:
ach1199 said:   
ptiemann said:   A friend of mine also had a home foreclosed by BofA. Total debt owed at foreclosure auction was $550k, it was a primary residence in California, and original purchase money.

To all those moral people, no, in this case, the borrower does not owe anything to the bank after they have taken back the property. BofA actually did not too bad on this, slow as they were, it took them a full year to list it, values had gone up.. and they ended up selling for $625k.

Back to the original problem.

So, my friend recently wished to obtain new financing. Equifax shows the loan account as "active" with a $0 balance.
Transunion shows it as "closed" with a $550k balance.
The loan officer uses a combined credit report (pulls all 3 and merges the accounts), and, .. you guessed it.. the software merges those 2 into "active account with $550k owed" which naturally was a problem.

It took about 4 weeks to clear to that up, I think it involved disputing those accounts on the credit report.


Legally the lender can go after the borrower for balance due on the note after the property is foreclosed on and auctioned off. However, most of the time the lender usually write it off as a loan loss. That's legal stuff, nothing to do with the moral.

  It depends entirely on your state.  There are a handful of non-recourse states, where if the mortgage was to purchase a property (not a refinance) the borrower cannot be held responsible for any remaining balance due after a foreclosure.

rated:
We got a letter of intent to foreclose in 2010. Then we got the Notice of sale to the bank in December 2011.

I braced for a credit score hit. Nothing. My credit score is around 730 now. The house was resold to a home buyer.

I have been waiting for SOL. A lender told me to write a letter to B of A requesting a "zero balance".

December 2017 will mark 7 years since the bank took back the property.

Just wanted to run that buy you guys first to get some feedback.

 

rated:
You can ask the bureaus to validate the debt. That would prompt the bank to either report the correct info or remove the acct from the credit report. Goto creditboards.com and follow whychat's process.

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