VA loan with foreclosed second loan still open.

[Mr. X]

Trying to get a VA loan. Wife has a foreclosure that was reported as closed 3 yrs. ago and schedule to age off in March 2015. The problem we are running into is that the second loan on that house is still being reported as “180 late” “2^nd Mortgage” for over 5 yrs. Now.

 

I call them and they say that the account was charge off back in May 2010. So I ask them to report the account as being charge off and also wrote them today, CRMM, asking the same thing. I believe that the second should be reported as closed charge off. And if they say it's still open than it should not be reported as a "2 mortgage" implying that it a secure loan which it is no longer.

Here the question: What does the law say about the reporting of second mortgage loan once the first is foreclosed?

 

p.s. already sends out the dispute letter to the company and
the 3 CRA.

 

Thanks,

X

[NEWSTARTIN2013]

I am also preparing to use my VA Loan, I would contact a VA Lender (if your working with one) they can give you the best answers.