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2nd Reporting Charge-off after Discharge / Release

Posted on: 29th Aug, 2013 03:58 pm
We closed a short sale in May 2010 with BoA (1st) and CitiMortgage (2nd). We negotiated a settlement with CitiMortgages' loan servicer Solace Financial. BoA is reporting fine. Citi is reporting Charge-off with a balance each month. This has been going on for three years, I have filed disputes without any success. I don't believe the credit agencies are looking at the documents. They will change the language about "customer disputes" or another small indicator but that's about it. Still charge-off.

I have a settlement letter which states that Citi accepted full settlement. I also have the Release of Mortgage executed by Citi and filed with the county. I contacted the Solace Financial who pulled the file and said it should not be reporting as charge-off. Solace took pity and gave me a non-public number to Citi where I was able to discuss the account. They took my information via fax and I've not heard back.

Am I wrong in thinking that the settlement / discharge should have eliminated the charge-off reporting?
Welcome leegrant,

No, you are not wrong if you have received a Release of Mortgage by Citi. It will be better if you could immediately contact an attorney and ask him to deal with the lender and the credit bureaus in this regard. The charge off should be eliminated from your credit report.
Posted on: 29th Aug, 2013 07:35 pm
Adonis,

Thank you for your reply. I am contacting an attorney. This has affected us in very serious ways, nearly killing the purchase of our franchise business. I was rejected for an SBA guaranteed loan and even had a hard time getting an auto loan last year. The lenders acknowledge that I'm not liable for the debt after reviewing the docs, but the credit reports don't allow them to make that judgement in underwriting.

I will report back!
Posted on: 30th Aug, 2013 06:18 am
Hi leegrant,

Hope the attorney will help you in sorting out the matter.

Thanks
Posted on: 01st Sep, 2013 08:40 pm
I have all of this in the hands of an able attorney. He reviewed all of my documents and was appalled...feels that if they don't respond to my requests we have a very good case for liable/slander of credit. Of course attorneys want you to believe that you have a case, but this guy is a trusted friend and doesn't need to be in my pocket. Through the course of this I have also found additional documentation including a letter I sent at closing requesting the loan to be closed, and credit status reported paid in full, plus settlement letters, etc. It really is appalling, they have held my wife and I hostage for over three years. I lost count of how many disputes I've filed. I'll keep you posted!
Posted on: 18th Sep, 2013 06:42 am
Thanks for the update! :)
Posted on: 18th Sep, 2013 10:18 pm
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