TX home forclosed, went back to bank, then sold

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janasmith72

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Hello! I live in Texas had 2 notes (both through HSBC) and my house was forclosed on. It went back to the bank and then the bank was able to sell it.

The first loan was $99,813 and was charged off/collection bad debt and my credit lists the 2nd note as forclosed and the balance owed as $266,198. Totallying $366,011. I just saw that the bank sold it for around $400,000.

My question is...once the house sold for more than I owed shouldn't the bank of removed both items (the collection/charge off and 2nd mortgage) from my credit or at least updated it to reflect that they are both paid off in full? Or in general...if the house sold for the exact amount owed what happens with my credit...or how can I ensure my credit reflects it?

Also, are there any tax issues I should be aware of? Thank you!
 
they should update the account, in turn this will update the credit report that the account is a paid in full charge off--- with that $$ I am sure there were expenses-- and taxes of course so I would contact the mortgage holder and ask for a detailed history so you can see what they did. Usually companies report to the credit reporting agencies once a month
 
I see this is an older post, but I have a question regarding the answer that was given by Theresagail.

Your reply sites that even though the original poster was foreclosed on, the fact that the property sold, after being recouped by the bank, that the subsequent sale of that property should essentially wipe out/remove the reported foreclosure from the original poster's credit?

Am I reading that reply correctly? Can anyone verify this process of removing a foreclosure from one's credit if the home has been successfully sold for equal or greater than the amount owing at the time of the foreclosure?

Respectfully,
Ang
 
ANGC2008-- I did not say they will remove anything -- they should report that it is a PIF Forclosed charge off-- If in fact the amount clears the debt in full.

A Creditor is not going to remove a forclosed loan from credit until the statute of limitations is out. But they can not hold the balance on there if the loan was paid for-- but if it was paid for after the property had to go into forclosure (charge off- bad debt etc...) it will still have that title just a 0.00$ balance. ( paid in full charge off, Paid in full forclosure etc..)
 
Theresagail
Thank you for the clarification. With regards to prospective creditors in the future, does a PIF foreclosure rating rather than a foreclosure with a balance on your credit report weigh in your favor, or are both reportings just as damaging?

Respectfully,
Ang
 
Both are just as damaging-- it means that it had to go that far in order for a PIF to happen-- However lenders are people, and they will always give people a chance to explain there financial issues-- You may end up getting what you want however you will pay with your interest rate. A PIF always looks better then a balance no matter what -- but a foreclosure or a PIF charge off are derogatory items
 
Theresagail
Again, thank you for your insight. This was an angle of the mess that I had not heard of/considered. We were, unfortunately, under a Servicing Company that was adamantly against any modification...even with the reality of our loss in income -Husband lost job, but found new work, that didn't pay as well - and my medical bills, hospital, surgery, etc.

We were nowhere near our "max" on our home loan, but as the market fell, not only did we "loose" almost 80k that we could have refinanced for, but also lost another 100k with the property value decline. We're in Arizona, and the investors and greedy ones really did a number on our housing market.

Anyway, when I saw this posting, I thought there may be some sort of a silver lining, if you will, to the dark cloud that is our credit report. Our Mortgage was our only creditor, literally...no credit cards, nothing else. We originally got our loan with a co-signer in 1997, and refi'd out of that as soon as we had established good payment history in 2000. We refi'd again in 2006, to lower our rate, and to pull funds to cover my first surgery....the lender kept trying to push to increase our cash back, but we just wanted to be able to cover the hospital bills from my emergency surgery. We have never had a sub-prime loan, and had never been late on payments until the event in early 2008 with my Husbands income.

In any case, thank you for your thoughts. I truely appreciate it.
Respectfully,
Ang
 
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