Aight PersonalFinance fam - got a good one for you.
Background:
- My wife's parents had asked her in 2002 to be a co-borrower on their home loan to be able to qualify for a refinance.
- She was in her early 20's and obviously wanted to help her parents out
- Parents were paying on-time payments up until 2013, where they were having financial hardships on/off.
- This resulted in a few months of late payments here and there.
- Fast forward to the beginning of 2018 they stopped making payments all together due to insufficient funds
- House is already scheduled for foreclosure end of this year
The Situation:
- My inlaws finally brought us in the loop of what's happening this month (August). My wife and I were like WTF
- THEN we find out that my wife is still on the title AND the mortgage
- This mortgage has never showed up on her credit report since 2002
Current Proposals:
- Re-finance
- Since she's on the loan and title, we are investigating the option to refinance entirely, there is equity in the home so it may work out
- Quitclaim her parents off and just have both my wife and me on the title/mortgage
- Have her parents pursure bankrupcy because their credit is already in the tank and home is safe with us
- Loan-Modification
- Current lender is giving the option to modify the loan to current interest rates (~4.5) instead of the 6%
- Add all the arrears to the end of loan
- Need to get approved for a hardship approval which may be dangerously close to the foreclosure auction
Questions for you guys
- Is there a statute of limitation for when companies can report negative information? Did some light reading on the Fair Credit Reporting act and there's a 7 year statute for negative information
- Current case won't quality for 7 year statute BUT what if the mortgage NEVER showed up on her credit report at all
- We believe we're at risk of disrupting her good credit because if the mortgage company fixes the "glitch" and report to (experian, transunion, etc), anyone have any other suggestions
- Not sure who the right folks are to talk to for this? Tax Attorney, Loan Companies?
Thanks ya'll!!
Submitted August 25, 2018 at 05:36AM by CreditReportingHell https://ift.tt/2BKmEZg
