My home equity was discharged in my bankruptcy. If I settle w/ bank will it hurt my credit?

my home equity line of credit and mortgage were discharged in my bankruptcy 2 years ago. I have paid both on time ever since then. My mortgage is reporting positively to the credit bureaus and my home equity isn't reporting at all. I am in the process of selling my house and buying another house so I called the bank that my home equity line of credit is with to ask if they would start reporting, to help build my credit, and they told me that they couldn't. They also told me that they would agree to settle with me for a lesser amount if I paid in full. If I settle with the bank and pay it off in full at the settled amount will this affect my credit in a negative way or hurt me when trying to get this new home loan? Even though they aren't reporting to the credit bureaus at all? Will it hurt my credit like a short sale would? PLEASE HELP!
igambatese
Asked Nov 02, 2011
Credit reporting is supposed to be based on facts. If the bank is forced to settle with you for an amount less than the payoff, it should affect your credit in a negative way. If you pay in full but you are late, that's what it's the report should reflect. With an accurate set of facts, it's up to the prospective new lender to decide whether or not they are willing to take the risk of lending to you.

If a bank refuses to report a loan, the fact is, there are no facts. Therefore that should have a neutral effect on your credit.
Rob
Answered Nov 03, 2011
Yes I agree with the other comment, when the bank is forcing you to settle with an less than amount of payoff they could affect your credit.
silvajessica722
Answered Nov 13, 2013
Hi, my advice is that you need to fix all your debt first, and you can consult a bankruptcy expert to help you out of your problem.
aliyahwestling
Answered Aug 21, 2014
Yes, it's better to settle all your debt accounts. If you are thinking of bankruptcy and just need some free bankruptcy advice, I think the best thing to do is to seek more advices from an experts consultant.
katerichards
Answered Aug 26, 2014
"I called the bank that my home equity line of credit is with to ask if they would start reporting, to help build my credit, and they told me that they couldn't" why would they do that?? you said you been paying them if is that so then it will have a positive effect on your credit. It means your a good payer!

www(dot)bankruptcyexpertsportmacquarie(dot)com(dot)au
SimonAndrews
Answered Dec 17, 2014
I agree with katerichards. It is really important to settle all your debt accounts.
samanthainglis
Answered Dec 23, 2014
you should settle your debt accounts then you can manage for it.
keithlyn_myer
Answered Jan 09, 2015

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