Consumer complaint received 2019-04-11
Company: EQUIFAX, INC.
State: UT
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
I believe XXXX XXXX XXXX is incorrectly reporting overdue/late payments on a home mortgage listed on all of credit bureaus. I base this belief on the following information. 

I owned a home in XXXX XXXX in XXXX of XXXX, when I was diagnosed with a life threatening illness which left me XXXX and unemployable. My wife and our family were required to relocate to XXXX to obtain employment capable of sustaining our family. 

We looked into selling our XXXX house in XX/XX/XXXX, but would have been severely under water. We were able to find renters from XX/XX/XXXX thru XX/XX/XXXX ; when the renters received military XXXX XXXX. We revaluated the option of selling ; but the market had not improved. We were able to sign new renters to a short-term 6 month lease in XX/XX/XXXX. In the XXXX of XXXX, those renters became unreliable and we decided to move to a month-to-month rental with them ; while listing the house for sale at the same time. There was not one single offer at all on the home for 6+ months. The 2nd set of renters gave their 30 day notice to move out at the beginning XX/XX/XXXX. 
At the beginning of XX/XX/XXXX, [ After consultation with our realtor, the Veterans Administration ( VA ), and XXXX XXXX XXXX  ( XXXX ) ], we initiated the process of a Deed-In-Lieu ( DIL ) with both the VA and XXXX. I have attached the following : 1 ) The formal request letter to XXXX dated XXXX XX/XX/XXXX, 2 ) an email dated XXXX XX/XX/XXXX documenting XXXX representative XXXX XXXX confirmation that my wife and I had submitted all required paperwork necessary to begin processing our DIL request, 3 ) An email dated XXXX XX/XX/XXXX from VA representative XXXX XXXX confirming XXXX had completed an appraisal of the XXXX XXXX house on XXXX XX/XX/XXXX with an appraised value of XXXX, The renters moved out of the house at the end of XX/XX/XXXX and the home was vacant since that time. We continued to pay the monthly mortgage due ( on-time ) for both months of XXXX and XX/XX/XXXX. Money was getting tight while paying two mortgages on my wifes income and my retirement/XXXX pay. 

In early XX/XX/XXXX ; we received a Notice of Approval for a Deed in Lieu of Foreclosure Letter from XXXX dated XXXX XX/XX/XXXX with a lot of information. The main points of concern were, Conditions that must be met You and all other occupants must vacate your property and the title must be clear and marketable by XX/XX/XXXX, the vacate date. Understand that any personal belongings left after XX/XX/XXXX, the vacate date become the property of XXXX XXXX XXXX  XXXX, Transfer/closing To complete the transfer of ownership of your home back to the owner of your mortgage, you must sign and complete all required documents provided to you by a third-party attorney, or title company acting on behalf of XXXX XXXX XXXX XXXX. 

On XXXX XX/XX/XXXX ; we signed, dated, and faxed back our agreement to the terms of the approval for the Deed-in-Lieu to XXXX. Furthermore ; I phoned Mr. XXXX XXXX, Home Preservation Specialist, XXXX XXXX XXXX  XXXX, phone : XXXX Ext XXXX. To inform him that the house was already vacant with all personal property removed and in marketable condition on XXXX XX/XX/XXXX ; there was no need to wait until XXXX XX/XX/XXXX. 

We did not have sufficient funds in reserve to pay for our XXXX  home 's XX/XX/XXXX mortgage and our XXXX home 's XX/XX/XXXX mortgage payment. It was my understanding ( after my phone conversations with Mr XXXX ) that once we vacated the XXXX home ( for purposes we are discussing here ) on the XXXX mandated Vacate Date of XXXX XX/XX/XXXX ... The House and ALL personal property with the house ; became the property of XXXX XXXX XXXX, XXXX ; as per their letter dated XXXX XX/XX/XXXX. At which point, we were not responsible for further mortgage payments. ( This is due in part to the fact it was a VA backed mortgage, and Lenders can not report mortgage payments as being late until the XXXX of the month on VA backed mortgages ). 

In this case, I would only have missed the XX/XX/XXXX mortgage payment on the XXXX   house. I should not be showing as late on any following months as I was no longer in possession of the house. It doesn't make sense to be held financially responsible for thousands of dollars for three additional months ; for a home you were required to vacate for those months. 

It appears from an internet search on the property sales of the home, XXXX eventually sold the house on XX/XX/XXXX for {$200000.00} ( see attached XXXX search from XX/XX/XXXX ). In addition, the Veterans Administration paid out approximately {$39000.00} and change to XXXX XXXX XXXX XXXX, to cover the deficiency balance between what was owed after the Deed in Lieu and the sale price on XX/XX/XXXX. So it appears that XXXX XXXX ended up recouping a total of {$240000.00} for the XXXX   house. Which is pretty much a break even for them ; if not more than what I actually owed at the time of the Deed in Lieu. 

Which brings up the question ; was XXXX XXXX XXXX XXXX, dragging this process out so that I could not afford to keep up with dual mortgage payments. In order for them to be able to collect the deficiency balance from the VA? In the XXXX letter dated XX/XX/XXXX it states that if I was able to meet all of the conditions stated in the letter ... '' and the mortgage is released, the investor ( and other interested parties ) waives its right to seek a deficiency balance under the mortgage note and/or related documents. '' My main concern, at this point, is the fact that I know have to pursue a purchase of a new build home which is more ADA compliant for myself, and an aging parent. In order to restore my full VA home loan entitlement, I had to repay the Veterans Administration the full amount it had to payout to XXXX XXXX XXXX, XXXX.. A total repayment on my part of the full {$39000.00} and change in the last 30 days. I can provide documentation of payment to the VA if requested. So, I have absolutely no outstanding federal debts, or obligations tied to this mortgage. 

I understand that the Deed in Lieu will be reflected on my credit report. The issue I am debating is how XXXX is reporting the late payment status with the Equifax, XXXX, XXXX, and XXXX credit bureaus. I have attached copies from the first three bureaus which were pulled on XXXX XX/XX/XXXX. I am waiting on a mailed report from XXXX. 

The Equifax payment status is reflecting, " At least 120 days, or more than four payments past due. ( updated XX/XX/XXXX ), but the payment history is reflecting all current from XXXX XXXX. 

The XXXX payment status is reflecting, " Credit grantor received deed for collatoral in lieu of foreclosure on a defaulted mortgage '' ( updated XXXX XXXX ), and the payment history is reflecting XXXX : XX/XX/XXXX late, XX/XX/XXXX60 Late, XXXX 90 Late, XX/XX/XXXX Negative. 

The XXXX  Payment status is relecting, " 120 days past due '' ( updated XX/XX/XXXX ), and the payment history is reflecting XXXX : XX/XX/XXXX30 late, XX/XX/XXXX 60 late. 

I am still waiting to see how the XXXX reporting is affecting my credit scores. 

I received a letter dated XXXX XX/XX/XXXX, from XXXX XXXX XXXX which states, '' We discovered a processing issue that affected our credit reporting. We apologize for this issue and we want to share the steps we have taken to address it. '' " When the deed in lieu was finalized, the closed date wasn't furnished to the consumer reporting agencies. 

We've notified the consumer reporting agencies to include the correct date on your credit report. 

You may reach out to the consumer credit reporting agencies. They can confirm that they completed the updates ... '' The problem with this XXXX XX/XX/XXXX letter is that is does not identify the CORRECTED DATE the Deed in Lieu was supposed to be finalized and updated with at the consumer reporting agencies. It is totally vague! I waited a few weeks from the time I received the XXXX XX/XX/XXXX letter ; to give the consumer reporting agencies to update their systems. 
Then I did follow up with the credit reporting agencies on of XXXX XX/XX/XXXX. Equifax was the only one with a XXXX update ( and I submit an incorrect update ). XXXX  's last update was XXXX XXXX. XXXX 's last update was XX/XX/XXXX. 

It was at this point in XXXX that I began disputes with the three main credit bureaus and also contacted XXXX directly to try and resolve this issue. 

I was put in contact with a Mr. XXXX XXXX, Executive Resolution Specialist,  Customer Care and XXXX XXXX ( Phone : XXXX ext XXXX ) to act as my liaison through my dispute process with XXXX. 

I sent XXXX a fax request an update to reflect no missing payments to all of the consumer credit reporting agencies on XXXX XX/XX/XXXX. ( See attached Fax dated XXXX XX/XX/XXXX ). 

I ended up receiving a letter dated XXXX XX/XX/XXXX from XXXX XXXX, Senior Vice President, XXXX XXXX XXXX XX/XX/XXXX. It stated they had received my inquiry and their goal would be to try and and provide a response by XXXX XX/XX/XXXX. ( See attached letter dated XXXX XX/XX/XXXX ) During the interval of time between XXXX XXXX and XXXX XX/XX/XXXX ; I had several conversations with Mr. XXXX ( some heated ones ) in regards to the status of my credit reporting dispute. We were unable to see eye-to-eye. I received XXXX response to my dispute the evening of XX/XX/XXXX, from Mr. XXXX via email. It was less than satisfactory, in my opinion. ( see attached letter datedXX/XX/XXXX

Company response to consumer: Closed with explanation