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Repo removal after 7 years


sje123
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A friend has a repo that happened 7 years ago in June. He went to a mortgage broker who suggested he pay it off for pennies on the dollar and gave him the name of a "credit repair" person who can negotiate the settlement with the bank. He owes $2500.00.

He said he was just going to have it taken off in June and she said it will never really come off, that it will pop up again and again.

My first inclination is to say that she doesn't know what she is talking about. Does she?

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My first inclination is to say that she doesn't know what she is talking about. Does she?

My feeling is that she wants to get paid now which means, she wants him to pay it off now so the lender she's working with pays her, see how that works. I would wait, that's $2500 he could use for his closing cost.

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ALL of the info your friend has received is correct, even from the mortgage broker. It's just a little confusing.

Dive is referencing the FCRA 1681c, Subsection 605...which details the Reporting Period and provides an exact starting date. (I won't type it out here, you can read the sticky for yourself)

That section also provides for exemptions to the RP.

Most notably (for the mortgage industry) is "...a credit transaction involving...a principal amount of $150,000 or more...". This size loan, or larger, is commonplace for a mortgage.

"...Most mortgage brokers know very little about credit reporting..." This is totally true. But this broker MAY have seen a CR wherein these exemptions where included and now be fearful of the prospect.

Truth is, that any subscriber/client of the CRA's may access complete Consumer Files on us that contain ALL the data being held (even that which is shielded from view after RP); THEY JUST HAVE TO PAY FOR IT.

Also the truth: They rarely do.

Most brokers, bankers and national lenders are perfectly fine with a tri-merge CR with the data we see and take for granted.

So, while your friend's repo will be shielded from view after the standard amount of RP, it CAN appear IF a lender pulls a special CR that contains older data. The chances of this happening are SO SMALL AS TO BE NIL, but do exist. Instead of paying a settlement company as insurance. He could simply find another lender, or better yet, another broker. :)

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Partially correct. Remember that a CRA is required to supply:

Disclosures to consumers [15 U.S.C. § 1681g]

(a) Information on file; sources; report recipients. Every consumer reporting agency shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to the consumer:

(1) All information in the consumer's file at the time of the request

If they are not showing that information to you when you request your CR, but they show it to a mortgage lender, and this causes you not get the mortgage, the CRA is now liable for actual damages in the amount of the mortgage.

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It doesn't matter if we agree. But I can tell you that the mortgage industry passes this phrase around.

Can't imagine how a one TL CR showing a defaulted repo would be 'better' than an empty consumer file. Most brokers already know how to populate CR's with added info, like rent and utility history so that minimum standards are met. I think your friend needs to speak with more than one mortgage pro.

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Can't imagine how a one TL CR showing a defaulted repo would be 'better' than an empty consumer file. Most brokers already know how to populate CR's with added info, like rent and utility history so that minimum standards are met. I think your friend needs to speak with more than one mortgage pro.

Agreed.

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