Deed in Lieu

[bostonlass]

Hi - Signed papers Saturday for a deed in lieu. Anyone know how long before the mortgage amount is off of my credit report? I know the bad credit history will be there for a while but the actual debt ratio is what I'm looking to come down.

Thanks!

[Cat Damiano]

bostonlass,


A Deed in Lieu will remain on your credit report for seven years at which time you should be able to contact the credit bureaus and have it removed.
http://www.realtor.org/wps/wcm/conne...8087b0e53c74b2

[bostonlass]

Thanks. What I was asking though is when will the balance of the mortgage be removed from my total debt. I called the mortgage company and they are telling me that they do not report to the credit companies. That makes no sense to me - I thought it was a requirement. Now the hunt is on to find out who is responsible for the final communication to the credit report agencies. Argh.

[TomEason]

Thanks. What I was asking though is when will the balance of the mortgage be removed from my total debt. I called the mortgage company and they are telling me that they do not report to the credit companies. That makes no sense to me - I thought it was a requirement. Now the hunt is on to find out who is responsible for the final communication to the credit report agencies. Argh.

bostonlass

Thanks for your posts. While it's unusual for a mortgage lender to not report to the major CRAs, there's no legal requirement that they do so under the auspices of the FCRA. So, if they've never reported on the account, they don't need to start.

However, perhaps I'm not fully understanding. In your last post, you infer that it has been reported, as you ask when the balance of that account will become zero.

Would you mind clarifying?

BTW, as you probably know, if a creditor errs in reporting, you have the right to demand they correct that faulty report. I recommend you do this with the creditor; reporting to the CRAs is frequently not a permanent fix. A dispute with the CRAs can remove the item, but will not prevent the item from reappearing when the creditor re-reports on all its accounts, typically every 30 days.