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How Do We Get Chase to Remove Illegal Mark They Made On Our Credit Report? – Leslie

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We foreclosed on a home in CA in 2008. We paid taxes and mortgage payments while offering deed in lieu and a short sale offer (moving due to job needs). After the bank refused all, we stopped paying for three months and mailed the key and left the house in good repair, with taxes current until auctioning. We are in a non recourse state, there was no refi on the home. The house was successfully auctioned off and we thought that other than our steep financial loss and angst over the first time of not paying a bill in our lives – we were done. We understood at the time that the first and second deal with each other and once the home is auctioned both have no recourse.

Somewhere in that time (after we defaulted and the house was auctioned) EMC was bought by J.P. Morgan Chase. We now see on our credit report that Chase has us with an open debt for a mortgage of $158,000 and shows us as $65,000 past due. Our credit is otherwise good in that we have always paid all our bills on time, we have only one credit card, no car payments and pay rent on time every month now for five years.

How do we get Chase to remove the illegal mark on our credit report without putting ourselves in the path of their random, terrifying choices to do whatever they want to a consumer?


This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

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This is information that was submitted by a third party and not generated by or Steve Rhode.


  • Hello Leslie,

    I am not sure if this is the first or the second, nor if these mortgages were both purchase money mortgages. 

    This does seem to be inaccurate if it is showing as open and not charged off and/or in collections.  However, mortgage reporting is very complicated.

    I would expect a delinquency to appear on your card but for it to be old, not current.  You should write a letter to the credit reporting agencies and CC: the bank and list exactly what is wrong — I would send a copy of your report with that entry highlighted.  Put in evidence of the date of foreclosure (you said the house was auctioned?) and explain that this should not show “open”.  Do send all letters certified mail, return receipt requested.

    Do you try to copy weird letters you find online that have a lot of language no one (no one) understands.  Just write a simple letter and be as clear as possible.  

    If that does not result in changes, you may want to contact a local attorney who deals with Fair Credit Reporting Act claims.  DO NOT talk to anyone who “Fixes credit” or call Lincoln Law Group or anything similar.  You want a consumer attorney who can verify if there is an error and the best way to deal with that.  You could look at National Association of Consumer Attorneys

    — Amy Kleinpeter

  • Leslie,

    I’m not sure the entry is illegal. I’m not a lawyer, but you stated that you defaulted on your mortgage and walked away. Since you lived in a non-recourse state you do not have to worry about collection efforts on the first mortgage, but that doesn’t mean that the lender has to report you as current on the loan or pretend that the loan never happened. 

    And you can’t be sure that the second mortgage just disappears. There may be recourse for the holder of your second mortgage if it wasn’t used to purchase the home. A home auction does not automatically erase a deficiency claim. Could the $158,000 represent the value of the second mortgage?

    The reason consumers wait for months to execute a short sale is this exact situation. There are often lose ends in a default and I don’t see any grounds you have for contesting that this was a default. I suspect you have a seven year black mark on your credit report.


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