Legal Question in Real Estate Law in Michigan

Our home was foreclosed on in May 2009 it sold at sheriff sale. We had two mortgages on the house to be able to get the 80/20 split on the majority of the loan amount. The same company owned both notes. Can we stop them from reporting late payments since we no longer own the house that the loan was taken out on? If yes how do we dot it? If not how long can they keep doing this?


Asked on 7/22/09, 12:47 pm

1 Answer from Attorneys

Once the house is sold, you are not responsible for payments. The creditor may collect from you the difference between the sheriff sale proceeds and the outstanding loan you promised you would pay on the house. The creditor should not report late payments on the original loan, but could report late payments on the difference between the sale proceeds and the loan.

In writing, you should dispute the negative item. The credit reporting agency will then have to investigate the validity of the negative item. If they do not remove the item, you are allowed to add an explanation to your credit report as to each negative item. The next step is to put your dispute in writing to the creditor. Please visit my website at www.lawrefs.com and search under the debtor/creditor link to see how to deal with creditors reporting. It is most persuasive if you have an attorney write the letter for you.

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Answered on 7/27/09, 1:00 pm


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