Remove foreclosure?

Question

One of my associates has a foreclosure on their credit report. Can someone give any information on how to remove that without hiring a professional company?

Thanks

Rudy Butler · Answer

@shannon Jefferson You can inbox if you want that companies info. A lot of people think removing it is dishonest. I'm sure they never had to deal with having a foreclosure on their credit. Regardless of the circumstances of why or how it got there, the end results is that it can be removed permanently. The only issue you will run into if within the last 2 years is a mortgage software called "AMIS" well I think that's the name, but it is not connected with the credit bureaus it's connected with public records. This program will notify the mortgage company of any foreclosure in the past 24 months.

Bill Gulley · Answer

What I have heard is that scammers tell you they can remove it, take your money, it'snot reported while contested and after the contestd period it appears again.

It is a matter of court records and filings you are identified in the action, judicial or non-judicial, it's a matter of record. Keep your money, you'll need it to pay higher rates for the next seven years when it falls off. 3 years later you can qualify for conventional loans, you may not get the best rate.

They can put a letter of explanation in thier file, explaining the circumstances, such as medical bills, but frankly, if they had a foreclosure then they had a foreclosure and it appering is proper and correct! You, they, may have a good reason why it happened, but attempting to lie and deny it happened says even more about that person.

You might as well call credit reports .......reports of personal  responsibility!  :)

Mark Ferguson · Answer

I don't understand how the bank can refuse listing agents offers.  If it was a standard sale then the bank isn't involved in the offer process.  All that had to happen was  request payoff amount and send the money to the bank when it closed.  Unless they couldn't close it in time before the T.S.

Jinean Florom · Answer

Dion DePaoli, everything you say is true under normal circumstances.  No I am not fighting for the sake of fighting.  What I have told you in the shortest form possible is what has happened to my client.  Trust me, I don't fight battles I cannot win.  I choose them wisely.  This was a peculiar situation and I have the backing of the State of California.  They are investigating this matter with good reason to do so because everything as we have stated, has happened.  And it is very real.  One would think that this couldn't be possible, but it happens.  And it happened to my client.  I am not ever opposed to hearing the truth.  All of your points are valid in a normal foreclosure - this was not normal.  And let me add insult to injury - the Hedge Fund that bought the house at the TS sale for $121K, was none-other than the bank.  The bank called the realtor who had the listing for the short-sale, and yes, put in writing in a letter that they were taking offers on the house and to bring her offers to them.

We are in contact with the Attorney General's office.

Look, I didn't mean to get this thread off into a different direction.  I simply wanted to tell the story of what happened to my client to see what his options were to get the foreclosure off his record when it was not a foreclosure according to the bank in their letter to DFI/AG in CA.

I'm not opposed to more discussion, I just want to focus on options for my client to ask the right questions.

Thank you Dion for all of your fabulous feedback.  Please understand that I think what has happened to my client is insane.  It was because of this very fact, my team took it on.  It was unheard of...and is very real...I hope that helps you understand why I came to this forum to ask the questions I have and to share.

Does this happen often?  I can only hope it doesn't.  The experience and knowledge I have gained from this experience has been incredible to say the least.  I have a great team of people in my network who has supported this journey with me and advised me along the way.

Looking forward to more rapport.

Bhavna J. · Answer

Thanks for all the informative posts.

Shannon Jefferson · Answer

Rudy Butler, can you post the companies contact information?

Dion DePaoli · Answer

Jinean Florom, you're caught up in fighting for the sake of fighting it seems.  The borrower's account has to be greater than 90 days delinquent or they could not have initiated Notice of Default and foreclosure proceedings.  Additionally, the payments will show delinquent from the date of the borrower's last payment all the way up to the FCL Sale.

In order for the property to proceed through Trustee Sale, the property would have had to complete the foreclosure process.  This includes Notice of Default after being defaulted for over 120 days.  Note that there is a Trustee and it is their duty to perform the FCL procedure properly.  If the property is approved for TS there is no duty for the bank to approve a short sale or the Trustee to stay the sale for the short sale.  A borrower has to conduct the short sale and payoff the balance due prior to the redemption period expiration.

A bank can not choose who the house sells to, the bank is not the owner of the real property.  So this idea that the bank somehow sold the property out from under the borrower doesn't make much sense.  The bank has nothing to do or say if the borrower finds a buyer which will provide a sale price which pays off the balance due to the bank.  The borrower doesn't need permission to sell his house in any manner really.  If the borrower sells the house for less than the amount due to clear all liens, as a function of providing clear and marketable title  the borrower would have to simply pay the difference to satisfy the lien.  Again, a bank can not say "No" to any of that.  The bank can not say "No" to a potential buyer and the borrower entering into a contract, they are not party to any of that.  The only time a bank's is involved is if the bank is being asked to take less than the amount due in satisfaction of the lien.  The bank then is shorted, paid less than what is due, which is the bank's option to allow or not.

A property being listed really means nothing in matters of foreclosure.  Listing the property will not stay foreclosure.  Again, the owner of the property would be who hired the Listing Agent, not the bank, so why the agent need to involve the bank for offers over the payoff makes no sense either.  The bank only has power to decide who to allow a contract with if they are forced to take less than what is due.  In those cases a bank can deny any offer for their own reasons, so even if the offer is above payoff, if the bank deems the buyer inadequate they do not have to allow the sale to that buyer.

A TS by nature is a foreclosure, so whatever is being said about it not being a foreclosure doesn't make much sense.  In regards to not receiving notice of sale, this is claimed all the time.  In most cases, the claim is unfounded and notice was delivered but ignored.  Perhaps this is an exception but the odds are against it.

The borrower not being allocated the overage from the sale is not grounds to classify the sale as not a foreclosure.  It is a separate matter.

I don't understand what you mean by the bank and the title company are reporting..."Title company said it's a T.S. sold will show foreclosure. Bank says not. Both are reporting."

Title companies have nothing to do with consumer credit or reporting consumer credit, so I am not sure what they are reporting.  The title company does seem to have the right comment though, it is a TS, therefore it is a foreclosure.  Nothing in this story is going to change that.  All the energy being directed to try and get the state to make the bank report differently on credit seems like an utter waste of time.

The borrower can call this whatever they want but the fact is, this is a foreclosure and belongs on this credit.  The nature of the late payments that will show on the credit will also show it is a foreclosure.

It really sounds like you and the borrower are hearing the answer, you simply don't want to hear it.

I guess the puzzling thing for me here is, your firm sounds like it is some consumer protection group or foreclosure counselor of sorts.  Why don't you folks know the in's and out's of foreclosure and credit if you are counseling the public on these matters?

Moral of the story in my opinion, you are wasting the borrower and your firm's energy in a battle that seems pointless.  Unfortunately, the borrower may not want to hear the reality but that doesn't change the reality.  To what end do you pursue this concept, hiring some attorney, if they even take the case, to persuade a bank to amend a derogatory credit line?  That attorney will cost a couple thousand, money likely better spent for the client setting up his new living arrangements and life.

Jinean Florom · Answer

@Dion DePaoli, thank you for your thoughts.  Dion, the "bank" in this case, should not have sent the listed property to T.S. in  the first place.  Client was protected under CA statutes.  Bank did anyway and refused listing agent's offers which were above pay off and would have been considered a standard sale.  But instead, the bank said we are going to foreclose and did not notify "us" nor the client of the T.S.  Subsequently the bank sold the property to a buyer at the T.S.  But, the bank planned on keeping the overage and not giving it to the client.  When we found out about the T.S. we went to the state to stop it.  The state investigated the bank.  The bank said it was a mistake and said they would not list the foreclosure sale against the clients credit and declared the T.S. to be a standard sale.  You are correct that delinquency payments will show - but this was only for three months delinquency before bank filed foreclosure papers.  So client is ok with delinquency on credit - but not foreclosure since bank made a mistake and said it would not be held against him after bank investigation.  Title company said it's a T.S. sold will show foreclosure.  Bank says not.  Both are reporting.  So foreclosure shows on clients credit report.  Do we get the State to push the bank to take it off since the bank said they made a mistake?  We have no issues consulting an attorney on this - I would like better to know how to approach legal and ask the right questions.  Thank you in advance.

Dion DePaoli · Answer

Jinean Florom, I don't understand what you are wanting related to what the Credit Union said.  The borrower's credit report seems to state, if I understand you correctly, "Not-Foreclosure Sale".  That is what happened and seems to be stated correctly.  "Not" being the key.

It is important to remember that the text impact in credit reports is not as high as the missed payments that are reported.  Regardless of whether the trade line says "foreclosure" most lenders will consider any delinquency 150 days or greater a foreclosure.  Point is, lots of folks get caught up with the very small impact points and miss the huge impact point.  In the case of a defaulted borrower, the missed payments that are likely properly reported are what is really bring the score down anyway.

It really does not sound like there is anything incorrect or that could or should be removed from your clients credit report.

Ryan M. · Answer

If there is a foreclosure on the credit report and its true, it should not come off.

It all ready happened and what's to say it won't again. People need to live with the results of defaulting a loan.

Remove foreclosure?

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