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#2255696 - 06/21/21 09:27 PM Partial Marital Settlement and Credit Reporting
Jen J Offline
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Joined: Dec 2015
Posts: 127
Husband and wife had a mortgage with us and began divorce proceedings in 2017. Payments stopped being made in November of 2017, causing the loan to become significantly delinquent. Property was sold and note/mortgage paid off 03/30/2018.

Wife is now disputing this delinquency on her credit report. She has provided us with a partial marital settlement agreement dated 03/02/2018 which states:

“The real estate located at ______ and legally described as set forth in Attachment A shall be sold forthwith. The parties shall continue to list the property for sale until the property is sold…The Husband shall pay and be responsible for the monthly mortgage payment owing to [Bank], consisting of principal and interest payments, real estate taxes and liability insurance until the date of sale. Such payments shall be paid on or prior to the date due by the lender, County and insurance company.”

Wife is disputing the delinquency on her credit report because of this settlement agreement. My gut response is that she still was liable with us for the debt, regardless. Nothing changed in their agreement with us. In addition, the settlement agreement wasn’t filed until well after the loan became delinquent. Any thoughts on the correct course of action under FCRA here? Should we be removing this delinquency from her credit report since the court (sort of) said she wasn't liable?

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#2255701 - 06/21/21 10:20 PM Re: Partial Marital Settlement and Credit Reporting Jen J
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,433
Galveston, TX
Her agreement with the husband had no impact on her debt that was owed to you as you were not a party to the agreement. Her dispute is with her ex. If she was now longer going to be responsible for the debt, she should have approached the bank and pursued a release of liability, assuming the ex. was credit worthy - but due to the delinquency - probably not. You have no responsibility to change the reporting as it is accurate. Her attorney should have told her such.
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