My house was foreclosed on several years ago and has since been sold, my credit report is still showing a balance past due of $21,000. How i...

Question

My house was foreclosed on several years ago and has since been sold, my credit report is still showing a balance past due of $21,000. How is this possible ? How am I responsible for anything once the house has been foreclosed on. I'm trying to get this cleared of my report, Transunion and Equifax has cleared it, Experian has not.

This is in the state of MA.

Thanks

Answer

A Deed-In-Lieu of Foreclosure would absolve you of any claims on the foreclosing debt. But otherwise, you may be responsible for any overages. In addition, if there were other mortgages or liens on the property, you may be liable for those as well. I suggest contacting the underlying debtor to see what the problem is.

If you feel the debt should have been discharged but was not, I suggest consulting an attorney who can draft demand letters and other correspondence designed to make mortgage holders take notice and action. Letting a $21,000 debt sit will likely result in a judgment against you sooner rather than later.

Answer

If the home was foreclosed, check your records or the court records to see if a deficiency judgment was issued. If not get a copy of the foreclosure deed and send it to Experian with a statement no money is due because no deficiency judgment was issued, If a deficiency judgment did issue then you should contact an attorney to help you deal with it.