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Dutchess_III's avatar

Will the USDA report to the credit companies that my home loan was paid?

Asked by Dutchess_III (46807points) April 5th, 2016

When we got out from under the shop in 2007 I filed bankruptcy. I reaffirmed my house and the car and a few other things.

It came to my attention in 2011 that, although I had reaffirmed the house, they had never pulled it out of whatever bankruptcy status it had been thrown into. I was making payments, so it didn’t really matter I guess.
I contacted my lawyer about it, but it just kind of fizzled away, and I forgot about it again.

A couple of months ago we refinanced the house through a local bank. My banker asked if I’d ever been late on my house payments, and I said yes. Things got tight after I lost my job in 2013. I pushed that bankruptcy line pretty hard a couple of times until I pulled magic money out of my butt or wherever.

Well, in working with the bank, it turns out that all of this time, since 2007, the USDA (who my loan was through) hadn’t been reporting to the credit unions, because it never got pulled out of bankruptcy limbo. On the one had it was good since my credit report didn’t reflect that I even had the loan, much less was ever late with payments, and I had plenty of other smaller loans in good standing, or paid off, to keep my credit healthy.

However, on the other hand, will the fact that I paid the loan to the USDA off reflect on my credit report?

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2 Answers

Mint's avatar

@Dutchess_III

If you reported under chapter 7/13, reporting regulations change when debt is discharged via bankruptcy. The fact that you paid off the loan will unfortunately not reflect on your credit rating moving forward.

Here is a quick link with more info.

Dutchess_III's avatar

I just need to check my credit report.

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