Do Mortgages Show On A Credit Report?

Q:

Do mortgages appear on a credit report?

A:

It is very likely that if you obtain a mortgage it will show on your credit. This is especially true if the lender is a large bank like CitiMortgage, Wells Fargo, or Bank of America. Information that is reported on your credit includes, the date the mortgage was opened, loan amount, history of payment, and current status (past due, current, etc.).

The above being said, it is not unheard of for a mortgage to not appear on your credit report. Let’s take a look at some instances when a mortgage might not show on a credit report.

Knowingly Unreported  By Lender

It is not a requirement for a lender to report your mortgage to the three credit bureaus (Equifax, Experian, and TransUnion). The burden or cost to some banks, particularly smaller lenders, is too great to report their mortgages. In some cases a lender may only report the mortgage to one bureau. Therefore, if you pull a credit report that lack this credit bureau, it will appear as if the mortgage was not reported.

Bankruptcy

Assume that you file a Chapter 7 bankruptcy but are still making payments on your mortgage. You would likely assume that since you are making these payments that the mortgage would continue being report to the credit bureaus. However, if the mortgage was listed in the bankruptcy papers, it is considered a dischargeable debt. The personal liability of this mortgage disappears with the bankruptcy. The credit bureaus remove the debt from the credit report since there is no longer a liability to the borrower.

However, there is a way for the mortgage to appear again on the credit report. A mortgage can be reaffirmed through the execution of a reaffirmation agreement that both lender and borrower must agree upon. This is a contract that ties the borrower back into the terms of the loan. Essentially, the borrower is promising to repay the mortgage that was recognized in the bankruptcy. In many cases, the credit bureaus will being to report the mortgage again since the borrower has reestablished his liability through the reaffirmation agreement.

Lender Error

A mortgage may not be reporting on your credit report due to an error. There may have been a clerical error or various other mix-ups that may have caused the mortgage to erroneously not be report to the credit bureaus. Contact your lender if you suspect an error occurred and ask them to correct it.

Delay

If you pull a credit report a week or two after the closing of your loan, it is likely that it will not be reported yet. The generally time frame is 30 to 90 days for the mortgage to first report.

Not on Mortgage

Your spouse may be on the mortgage but you were left off for financing or various other reasons. Although you are married, only the person on the actual mortgage will have it reported to their credit report.

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