We had a loan that went through the foreclosure process and foreclosure was completed. After that the borrower filed bankruptcy and was discharged. Are we to update the credit reporting with the bankruptcy information even though the loan has essentially been closed out and the property taken back?

If the BK was post foreclosure - what are you going to update?

The loan is still reporting to the credit bureaus... that's my question- do I need to update via our core system or eOSCAR to report the bankruptcy information or are we in the clear from having to make that update if the account is closed.

This was flagged on a statistical report. Foreclosure was completed on the account... now the bankruptcy has been discharged and you're to stop reporting after a discharge so I'm trying to determine how to handle this- we didn't update the account with the initial bankruptcy filing or discharge due to our foreclosure being completed... do I have to report the filing and discharge after the fact and discontinue reporting? do I just discontinue without changing the codes? do I leave it as is?

I am confused. If you foreclosed, wasn't the loan extinguished at that time. Why would you still be reporting the loan unless a balance remained?

Foreclosure Completed – Account Status Code 94 should be reported, which specifies “Foreclosure completed; there may be a balance due”. The appropriate Payment Rating should be reported in conjunction with this Account Status. Discontinue reporting Special Comment Code BO (Foreclosure proceedings started) at this point.

If the consumer is not responsible for the remaining balance on the account or there is no deficiency balance, report Account Status 94 and a Current Balance and Amount Past Due of zero. Report the Date Closed as the date the foreclosure was completed.

If the consumer is held responsible for the remaining balance on the account, continue reporting Account Status 94. In each subsequent reporting period, increment the first position of the Payment History Profile with value H (Foreclosure completed). Report the remaining balance in the Current Balance and Amount Past Due fields, and as payments are made by the consumer, report a declining balance in both fields. When the Current Balance reaches zero, report the Date Closed as the date the account was paid in full.

We're reporting the loan just as you said & outlined in Metro 2, status 94 with $0 balance/amount past due. This data goes out on our monthly report that is sent to the CRAs until it reaches the cutoff for purging based on the DOFD.

I'm reviewing the report from Equifax & its saying that we should discontinue reporting due to there being a Ch.7 discharge on file. We can discontinue reporting easily enough, it just makes me question if we are discontinuing based on the discharge should we have reported the filing & discharge when they occurred (even after the FC).

I would call Equifax and ask them why they are requesting this. They can't discharge a loan that was already closed prior to filing BK. The BK would not impact any closed account prior to filing unless remaining balances were involved in the BK.