This is a true story....
I have a home under contract that my clients had built several years ago. They have never moved, but their children are gone and they wanted to down-size.
After their home was under contract we went looking for them a home and found them a nice lake home (foreclosure) around the Ann Arbor-Pinckney area.
They met with the lender this week, have mid 700 credit scores...no worries.
Ahhhhhhhhh....
The lender notices there is a foreclosure on their credit report from GMAC on the house they are living in and have never moved from. They have never been late on one payment, these are both professional people.
WHAT!!!!!!!!!!!!!!
They had no clue until the lender pulled the credit report.
The title is clean, the Township and County have no record of it.
When they refinanced with GMAC they tagged it as a foreclosure and not a refinance.
What to do?
My client spend 3 hours on the phone with GMAC on Friday, he was passed to 34 different people, "not my job, not my department."
This should be a simple fix. But, no one at GMAC will take ownership of the problem.
As you can see they have mid 700's credit scores.......so it has not effected their credit, they will get the loan, but who wants a foreclosure on their record.
Any Activerain lenders have a solution?
Hire an attorney. Sometimes a letter from an attorney can work wonders.
A great warning to everyone: Pull your own credit on a regular basis.
Wow.... Some story. I would be miffed. Well, make that MIFFED.
That's where a attorney comes in. Unfortunately the fee's will have to be paid by your client.
Hopefully it can be resolved quickly and inexpensively.
Enjoy your day
Actually, filing a complaint with the FTC would probably ve the the cheapest way to resolve it. It will usually tqake about two months though, because they have 45 days to respond to the FTC.
I am advising ALL of my clients to pull their credit at this time. It is amazing the amount of errors that are in the reports since mid 2007.
I sure hope your clients can secure a speedy resolution to this problem.
Good Morning Missy,
I certainly do hope they are able to resolve this without expending any more time or resources. Life seems to be more full of careless errors these days.
Missy, When I posted this morning, I was thinking of you.
Please don't come back as a PROXY Error :-)
Missy - This is ugly, and I'm sure it's happening to more and more people as our banking system has been overtaken by people who can barely read, and don't want to be responsible.
Hi Missy,
This is WHY we need more rules and financial penalties to companies that take advantage... Rules are to be followed and many of these companies are so concerned about the almighty $$$ that they don't take care of the details correctly and mess many people's credit... Overhaul time! ;>))
Why don't they file a DISPUTE with the credit reporting service that contains the error. The credit bureau, TransUnion etc. will have to verify the info or remove it.
Their lender can give them a copy of the credit report with the derogatory because it's there. The credit bureau can give them a link to the DISPUTE form.
Who knows? Their credit score could be 800 without that derogatory.
Missy - They should immediately write to all three credit reporting agencies contesting the foreclosure being on their credit. The credit agencies are obligated to investigate errors on credit reports and correct them.
Solution.........sure.....have them blame you...after all, you are their agent and everyone knows that what ever goes wrong must be the agent's fault.
Go back to the refi person if possible. See if they can do anything.
Call GMAC and ask for the name and fax number of the [highest official you can get one for].
Then send a fax letter to that person's attention
I'd file a dispute with the listing agency. They shouldn't have to hire an attorney and the credit agencies MUST investigate disputes. What a crazy problem though.
This is an easy fix and their lender they are working with should have come up with this solution. Challenge the record with the agency. Once challenged they will go to the lender for verification. If it has never happened it will be off their report in 30 days and cost nothing but time and three letters. Once challenged the lender who placed that record has 30 days to respond. If they do not respond in 30 days it is automatically dropped. Good luck
Errors on the credit report are usually removed by the credit bureaus when proof is provided that a debt has been paid in full, for example. You'd think that providing the closing info to the bureaus would suffice to have the derogatory info removed. I would call the credit bureaus and file a dispute, just like Lenn Harley recommended. good luck. Marianne
John, these are clients turned friends over the 12 years I have sold them homes. They are NOT blaming me in any way.
Tammy, what listing agency are you talking about. I sold them the home in 04, they refinanced in 08.
Lenn, I am sending your comment to their lender, my client has spent entirely too much time on the phone.
William, I read it. :)
Thanks all,
Missy - I agree with Michael #14 - why is their lender not helping them?
My last 2 closings, there were errors on the credit report, the lender that I work with resolved both of them in 1 day. These were buyers with lower credit scores and needed it fixed asap to get approved for their USDA loans - and it was fixed, thanks to Mary Fisher.
How awful, Missy. Errors like that can happen, especially when people are overworked (offices short-staffed!). I wish your clients good luck at resolving this very quickly.
Wow, that is an awful surpise to deal with. We will probably see this more and more.
Get an attorney that eats a bowl of nails for breakfast every day.
File a dispute with the Bureau. That is the fastest way to get something removed. The bureaus will send back a copy of the notice to GMAC and if they can't document it, the Bureau has to remove it.
Wow, Missy this surely is awful timing! They need this repaired quickly so they can get the loan. Timing is essential on foreclosures.
Hi Missy, My understanding is that when a consumer files a dispute the reporting agency must pull the disputed item while the issue is being resolved. Perhaps this would allow them some breathing room and get the contract to the nearest closing table !
We have companies that pull our credit. For example: I use a company named Kroll Factual Data.
Kroll can go in and investigate the matter and provide an updated report to the lender.
Simple
I read Lynn's post after I posted.
A dispute takes time. My suggestion accomplishes the same thing within 3 - 5 business days.
Have to agree with Tom, Kroll is the most efficient, they should be able to give you the quickest solution. www.factualdata.com The lender should have this solution on their desktop.
That had to be a shocker for those fine people. Did they freak out or handle it gracefully?
This is going to sound too simple but I've had great success going online to have legal issues resolved. http://law.justanswer.com and http://askalawyeroncall.comare two sources. The fees are sometimes donations with a suggestion of $35. or whatever you can afford. They get right back to you and you are able to filter your request and ask, in your case, for a specialist in credit repair. Good Luck! Sherry Brown, Keller Williams Sonoran Living Realty, Phoenix, AZ
nuckin futz as Dickey Roberts would say. Can anyone, anyone do their job correctly.
Truly unbelievable. A seemingly small oversight to an adminstrator documenting a refinance, could be a major problem for these good people.
I say file a legitimate dispute with the credit agencies - I have seen some errors corrected, but unfortunately it can often take weeks.
Good luck Missy ! never a dull moment huh !
Missy:
People do not believe how many errors there can be on credit reports. These people should file an immediate complaint with the credit bureau and dispute this. How very frustrating...
This is a lesson to everyone to pull a credit report ahead of the time that you will be looking for a home. You never know what may be on it.
Missy - That is dreadful. Luckily your clients will be able to proceed with purchasing the lake property. As suggested previously, filing a dispute with the credit bureau should rectify the problem. Otherwise, an attorney might be required to get it resolved. Good luck.
Finding this error is stressful enough for your clients but being handed over from person to person and not getting answers is totally unacceptable. If your clients are elderly they have an even harder time dealing with red tape.
Maybe they should contact their congressman/congresswoman
What a nightmare. I can't even begin to imagine that happening to me or one of my clients. Nothing surprises me today with what the Banks are going through and all their ridiculous antics.
They should dispute it immediately. False information. File a compliant with the proper authority. Sounds like another lame excuse.
The lender is helping them and it will eventually be removed from the report. We have no issues with the closing on this home or the new one. They have not one late payment on any account at any time in their entire credit history.
When someone stole my identity..I filed a dispute with all three credit bureaus after viewing the report. I even filed a report with the police...it was removed pretty quickly.
Missy- credit reporting agencies like equifax, transunion & Experian. When I personally had disputes after an identidy theift I had to challenge the report with each agency that had the misinformation listed. Was certainly not easy to clean up, but eventually was done. I have also had information about another Tammy Lankford show up on my report. I now pull my report annually for free just to keep an eye on it.
Missy. I don't believe that it is a matter of late payments, etc. Fact is, the credit reporting companies use computer programs to "score" and that derogatory is dragging their score down. I don't believe they'll get anything done on the phone. They need to file a dispute.
I would write to the credit bureaus; one letter for all three. SIcne yu have no deadline, just dispute it through the nornal channels. GMAC will not be able to "prove" it and will likely tell the credit bureau it is a mistake at that time. In any case, it will be gone in 30-90 days.
Missy, thanks for sharing this cautionary tale. As one person commented, now more than ever, people need to be vigilant with their credit and personal finances. You've inspired a blog post. Thanks!
Missy, I don't have a suggestion, you got quite a few. I just wanted to say how horrified I am. That's all.
Missy - It seems you've been provided with a plethora of options for solving the problem, but I would suggest to your client/friend that they pull copies of their credit report annually. As you probably know it's free from annualcreditreport.com. The best way to do it is to pull a report from a different company (Experian, TransUnion, and Equifax) every four months. That way you'll get updated info without having to pay for it.
Missy ---- this is terrible -- certainly hope they get this mess straightened out.
Get the phone and email address for the top honcho and ask to speak to him or reply to the email. Worked for us on a short sale with BOA. Go get em!
what a frustrating and annoying problem, i does seem however that sloppiness is the norm. I am sure they will work their way through this but good grief!
Missy, I forgot to sign in so comment 50 is me. It really worked, we received a call in two days from the email.
Missy, write the CEO at GMAC and let him know that he will be making headlines like BofA with false filings against the property. Fax it, email it, send it certified mail and then record a copy of the letter against the property with the LEGAL DESCRIPTION, The Property Address as the PIN#. Send the CEO a copy of their payment history, their HUD to show that they refinanced and this is an error. Pretty much will get some attention. Did that with BofA, filed a copy of the denial against the property and then sent the filing information to the CEO, legal department and LM, SS, departments ... got some attention.
Missy,
Mind boggling. I find the amount of data that is incorrect out of control, none more so than this example. Well, of course, the people who paid cash but were thrown out anyways a few weeks ago.
I hope the suggestions work!
All the best, Michelle
Keep me posted- was closing on a house three weeks ago and we could not get the payoff from the bank after several calls they told us the house was in foreclosure... they had never missed a payment. they paid he bank the payoff and the foreclosure fees so they could close- now they have an uphill battle to get some of their money back. Keep us posted...
Oh yeah..... And what Barb said too.... ;-)
Gotta hit em hard sometimes.
I would file with every agency I could...and loudly.....I would bet they do have an 800 score and of course a HUGE apology coming...let us know if and when they get either one...yicks !
Howdy and afternoon Missy
Just like alot of the other folks have said here. I also believe the best thing for your clients/friends should do, is to file a dispute with the reporting service. Those folks should not have to put any money out, in order for it to be fixed.
Hey Missy... This may be a little over-reacting...but if you don't get a response...how bout calling your local TV station to let them do an investigative story on it. It's amazing how fast they move when they know someone is going public with a legitimate complaint. It would be a great piece on you as a caring agent and a reason to have a realtor on your side.
Missy, that is an amazing story. I can't believe GMAC did not send them any supporting paperwork throughout the process.
Missy--I can't believe I am reading this: today I got notice from my lawyer's office that my house that I am selling and am supposed to close on Wednesday, came back as a foreclosure!!! The secretary was calling for a final "payoff" letter from my mortgage company and guess who it is? GMAC! I am not in foreclosure and the lawyer is handling the issue but I am amazed that I am seeing the same kind of thing from GMAC with another person! I have been conversing with them for some time now and had requested a payoff letter for closing about 1 month ago. Nothing was said then or EVER to me! Sounds like they are just throwing the term "foreclosure" around with out any reason for it! Outrageous!!
That's incredible. They need to dispute it and send the refinance paperwork to the credit bureaus...when they cannot get verifying proof from GMAC of a foreclosure....it will come off. You can use a rapid rescore company. I have a good one if you need it.
Hi Missy -- Get your local TV Media Investigative Reporter involved. Get the state's attorney general involved. Try and get an e-mail address for executive leadership at GMAC. Call the Treasury Dept (yea right) as GMAC was bailed out twice by you and me. I have heard of this before, unbelievable.
Missy I am a fanatic about checking my credit twice a year for this very reason. Got my name spelled wrong, take it off. Got employment twice but spelled different so it looks like it's not the same company - take it off. The credit reports are free once a year. I can't understand why everyone does not get theirs at least the one time per year.
I agree it sounds like a attorney issue. They will respond to an attorneys letter quicker.
I like Barb's answer, #53. Get some attention that you're going to tweet this and get it all over the place. In fact, I'd tweet "GMAC" in the text and see if someone notices.
Missy, I didn't read all the comments but here's what I would advise. Have your client contact the credit bureau and tell them that this is incorrectly reported. The credit bureau will contact the lender. My understanding is that if the lender does not confirm the foreclosure within 30 the bureau will remove it.
It's time to call your attorney. Obviously someone droped the ball. They should be fired for this.
Sned them a copy of this Blog and let them know 170K Realtors don't understand why.
Never thought of this but maybe add "Check all 3 credit reports" before you let them in the car. Better to know about problems before an offer.
Aren't there rules in the Fair Credit Reporting Act to protect the consumer from this type of abuse. I'd be letting GMAC know that I would file suit if the problem wasn't corrected immediately. All three credit bureaus should be contacted and the information disputed in the record.
Missy, that is crazy! I love the Tweeting idea, but you're probably gonna have get an attorney to get anywhere.
Challenge is pursuing quickest solution or righteous solution. One wil take longer than the other.
That is absolutely amazing. Foreclosed and never left there home! Sad state of affairs that things are coming to because paper pushers and hourly wage workers don't want to do there job!
File your complaint with the FTC and the Better Business Bureau. This will help to resolve their issues even though it may take a while and it will also start a paper trail against GMAC and give some leverage to start an eventual inquiry on the practices of that company. Also inform GMAC that you intend to file a complaint with the aforementioned agencies. I have always found that when I let the company know of my intentions to file those complaints it does wonders to get the ball moving quicker toward a favorable resolution. Good luck.
Let GMAC know that you will be contacting your client's attorney, reporting them to the FTC, and the Better Business bureau. I have found that these measures usually get the ball rolling toward a favorable resolution.
Hi Missy - Contact a local Attorney that specializes in Real Estate law. I'm sure a nice threatning letter will lite a fire under someones bottom and cause them to take action to fix the problem they created. I wish your clients luck!
This is amazing.. SOme of these banks are really loosing it these days. I read an e-mail today where a Short Sale had closed with US Bank and just 2 months later, the new buyers get locked out of their home... Hmmm
Hope they get this taken care of Missy !
I'm not a lender, but this is what buyers should learn about to avoid foreclosure :) great post Missy and keep the good work ! Hope that you get the answer.
Hi Missy! What a story! My first reaction was to have the lender help them out and to file a dispute with the credit bureaus and let them get to the bottom of it. As long as it's not affecting the Closing of their new lake home, they can resolve this at any time.
I'd also venture to say that if they filed a complaint against GMAC with the BBB, something would get resolved as well--ONE of those 34 folks would then do SOMETHING! ;-)
Hmm, sounds like attorney time. I heard of the same situation with a couple in Florida who got screwed by BOA after a refi. Those coding errors can cause more problems than you can imagine, and no one will take reposnsibility. I think we will likely see more and more of this.
Jeff
I'll be looking forward to hearing "good" news for these folks on getting the smear removed from their credit report as a foreclosure.
It would seem the "Dispute" route is the best one to follow and hopefully they do not have to pay anyone anything to get it fixed as it was anothers error!! There is just soooooo much injustice going on these days with folks/companies, etc not accepting responsibility for the errors of their ways. It appears that always someone else is to blame.
Sue of Robin and Sue
Missy,
Filing the complaint with the three credit bureaus is probably best. It is so sad that no one at GMAC can step up! But at least your clients have some options for resolution to remove that "mistake!"
Wendy
Boy, that bank list is getting LONG! I have added 2 more this week and it's only Tuesday.
We cannot have our lives hijacked by apathetic paper pushers.
The law is that if they make a written dispute with each credit reporting agency, that they have 30 days to prove the validity of the reported item or remove it. Fair credit reporting act? Federal truth in lending act? Not sure. But it is the law.
Hi Missy, I also agree! They have to contact the 3 credit agencies. This is really getting out of hand! Good thing it didn't affect their credit scores.
HOW THEY HANDLE THIS DEPENDS ON THE TIME THEY HAVE TO GET THE DEAL DONE. I WOULD START WITH AN ATTORNEY LETTER/FAX.
BTW - I HAVEN'T FIGURED OUT HOW TO CHANGE FONTS ON AR - CAN YOU PLEASE TELL ME YOUR SECRET?
THANKS!
Paula, so sorry it happened to you too.
The lender and the credit repair person has a call to GMAC today. We have fingers crossed it will get removed, then they will find a dispute with each credit agency.
As I mentioned with mid 700's it is not going to stop them selling or buying their new home.
Betsy, I use Safari but there are a lot of tutorials on here just put it in the search bar of AR "how to change fonts". Michael Thorton has some good ones.
It's bad enough that the error was made, but worse that no one seems to care (except you).
I always find it a shame that departments in banks don't have answers to simple questions about where to direct people when there is a problem. That is just mind blowing!
Attorney is how I would go...this doesn't surprise me at all...and even more that no one wants to help out!
Missy, I hope you will keep us posted...thais is wild! So frustrating when on the phone for hours not getting anywhere!
Missy, what a mess. I think Lenn is right about filing a dispute. They have to look into it and someone will then be required to back up the facts.
Well, GMAC = bad news. I would hire an attorney and sue them for damages because right now a lender would want anything but a jury of American citizens to hear a case of how a lender has hurt a homeowner.
Good Luck!
Don't fiddle with first-lines in the call center - escalate immediately to a manager for situations like these. When it becomes obvious there's no record of missed payments, someone with authority may be in a position to help fix the problem more quickly.
It used to be that we would hear of things like this happening rarely. Now they seem to be popping up more and more. That is disconcerting.
And the passing the buck syndrome when trying to deal with it? Well that just infuriates the most patient of people.
Best of luck with this one Missy.
Dispute it with the credit rreporting and if there is no satisfaction then an attorney is the way. Ah, what a world.........
What happened with the title insurance? don't they step up to the plate and protect their customer? Here in California, nothing happens without title insurance, refy is simply another loan, they have to have clear title in order to authorize the refy. Banks are not helping.
Antonio
Missy, what a mess! You received some great comments. It will be interesting to hear how it turns out.
Lenn is correct file a dispute with reporting bureus. But also the credit reporting company that formulated the data into report should be able to initiate an investigation to get the information updated much faster. Glad it is not affecting THE BUYERS HOME SEARCH. It is estimated that 79% of all credit reports have some type of error, this happens to be a HUGE ONE.
Missy - Thanks for sharing the story. We all know that true stories are stranger than fiction!
Missy - Thanks for sharing the story. We all know that true stories are stranger than fiction!
Missy - Thanks for sharing the story. We all know that true stories are stranger than fiction!