During a divorce several years ago we lost our home to foreclosure. Ended up with a charge off on 2nd loan. Called every couple of days during the beginning to get a plan together to clear things up. Ended up calling for several months and kept being told that I needed to wait for loan to hit the bank debt department. I reported the divorce, foreclosure, charge off and the calls to bank to security office. Made a call every week for about 2 months still nothing. Eventually I called and they reported that the loan was no longer in the system and could not be found. I called a few other representatives and received the same answer, but the charge off remained on my credit report. Called a month or so for a year to see what to do, was constantly transferred but no one could locate the loan or debt. Finally a year later filed a dispute with credit companies, since I wanted to buy a home, but the charge off was not removed. So again started calling the bank for several weeks with no luck. After several months I gave up. Just recently came to the statute of limitation for the debt, was able to get a VA loan and purchased a new home with no problem. Debt should fall off of credit report by the end of 2020. Not sure what else to do before my PR. Any advice?
Explain the situation in your paperwork. You tried your best to deal with the situation.
It might also be helpful to have the contact info for the bank and info about the loan. I suspect an investigator will want to have that kind of info for the report.
The definition of frustration…hopefully you kept solid records. If you have the same cell phone and used that you can access phone record to show you kept calling. The stronger and more meticulous your records are, the better it is. There were a lot of people impacted by similar situations, robo signings, etc where the bank could not ever prove they held the mortgage, and worse. One would think once the credit score returned to a solid point it would not matter. But I can tell you even with an 800 score, if they see evidence of a missed payment period, it will be scoped and looked at, and may require a few in person interviews. Congrats on pushing through and trying to get the situation rectified. Glad to see the VA approved you.
Explain the charge off in the financial section and add comments
I don’t think you really need phone records just a good story. I did a short sale explained it and had a single interview. Narrative was recorded and no follow on interviews. Got a favorable. I even did a FOIA and read the narrative.
Thanks everyone. The whole foreclosure process was painful enough, to have to try and fight a bank to take your money to keep you honest, brought a whole new level of frustration. I will provide all the details and hopefully some common sense will prevail especially since I’ve had a clearance for almost 30 years with 0 problems up until now.