Home Buying in Brownsburg>Question Details

schan300, Other/Just Looking in

foreclosure proceedings started, owner paid mtg co in full before complete. can the mtg co report to credit agencies as a foreclosure?

Asked by schan300, Sat Jul 30, 2011

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Beth Youngs’ answer
Could you elaborate a little more? I am gathering that the house was in pre or in foreclosure and the owner paid the mortgage off before the foreclosure...is that correct? If the owner did not loose the house to foreclosure then it cannot be reported as a foreclosure. However, since they were in arrears, it most likely did show up in credit report and score. To be sure, the owner should pull a credit report and see what has been documented and check with their mortgage co to see how it was reported/settled.
0 votes Thank Flag Link Sun Jul 31, 2011
It depends on how many days past due the account was when it was paid. Under the Guidelines, a foreclosure is any account that is more than 150 days past due, whether the house was posted or not. So if it was that far past due then the bank, in my opinion, may report it as a foreclosure. If you have concerns I would suggest contacting an attorney that specializes in the Fair Credit Reporting Act.

Jack Gillis, M.B.A., J.D.
Jack Gillis Realty Advisors
Nathan Grace Real Estate, Broker
5619 Dyer Street | Suite 100
Dallas, TX 75206
Cell: 214.718.4910
Email: Jack@JackGillisRealty.com
0 votes Thank Flag Link Sat Jul 30, 2011
Not sure I understand the question. Sounds like you should seek the advice of an attorney. If the house was headed to foreclosure, but homeowner was able to pay off the mortgage (hence stopping the foreclosure to go through), then common sense would dictate that there would be no foreclosure reported.

However...I'm assuming the homeowner's credit would still be damaged to some extent because they presumably missed a bunch of payments, and that DOES affect your credit score.
0 votes Thank Flag Link Sat Jul 30, 2011
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