Washington, MI asked in Consumer Law, Foreclosure and Real Estate Law for Michigan

Q: Mortgage company wrongfully put balance on credit report.

My home went into foreclosure in 2020 and I sold it 2 weeks into the redemption. I got a 1099-s, discharge of mortgage from the vice president of the company and a closure of account. I also walked away with a check from the sale. I am being told that I have a $26,000 balance on my credit report from this company they have never notified me of it nor give me a broke down. It is been affecting me for over two and a half years saying I owe this but have never actively tried to collect this amount. They've said the debt was not real and that it would be removed which it was for a year and when I tried to apply for a home in January of 2023 it came back and I filed a complaint with the cfpb company then said it was real but refuse to tell me what it was for. If I have proof the house sold is this debt voided and can it be removed? They also told me I was never supposed to receive a discharge of mortgage and it wasn't recorded right. Credit bureaus all are reporting it differently.

1 Lawyer Answer
Kenneth V Zichi
Kenneth V Zichi
  • Fowlerville, MI
  • Licensed in Michigan

A: This is FAR more detailed and complicated than can be properly dealt with in a public forum like this.

At a minimum, your attorney will need to see all the written documents (like that 1099 and discharge of mortgage) and look at the documents recorded with the register of deeds.

If you find someone willing to provide ‘advice’ without reviewing the paper trail they will likely not be providing good advice.

You are going to need to have your ducks in a row to challenge the credit report and the longer you wait the harder that becomes.

Please consult with a local licensed attorney ASAP to discuss.

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