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House foreclosure (CountryWide) question?*
My husband has a foreclosure on a house from 2003. But he was told that on his credit history that the foreclosure still shows that it is "open". If he received a 1099-C in 2003, doesn't this mean that the loan was closed because the house was sold and he had to take the hit to his taxes that year? I thought if you had a foreclosure that part of the process was done, and how can it still show open if the physical house has been sold and someone else now owns it? I'm SOOOO confused!
Answers:
1) Generically, a foreclosure -- the actual event -- is over when the bank takes the house and auctions it off. However, your credit report is a history of all of your credit activities and explicitly includes the past. Most "bad" items, including foreclosure, can remain on your credit for 7 years. I would question what "open" means to the credit agency itself. If it means that a foreclosure is in process, then you should be able to get them to report it as "closed" as of the date the foreclosure process ended. (Which starts the 7 year clock for the item remaining on a credit report)
2) I was in the exact same situation! I went for small mortgage last year and was turned down because it was showing as "open" Is it the actual judgment that is showing as open? With me, the forclosure was satisfied when the bank auctioned the house off in 2006 which "ended" the forclosure process and was showing as a $0 balance but the judgment was still on the report for the amount owed on the mortgage. The first thing to do is go to the court where house was auctioned showing that the sale of the house actually took place. Then contact the court that took out the judgment against you, show them the proof that the judgment was satisfied (through auction sale documentation) and request that they report the judgment is satisfied. since its 2010 you should be due for it to come off sometime this year or early next year.
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