How to Report Foreclosure Deficiency Balance to a Credit Bureau
Credit bureaus, also called credit reporting agencies, maintain the credit histories of any consumer who has ever used or applied for credit. Any consumer who goes through a foreclosure and foreclosure deficiency may have both items listed on their credit report. Companies or mortgage holders who wish to report these items to credit bureaus need to take the proper steps to see that this happens.
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Instructions
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Become a member of one or all of the credit bureaus. There are three credit reporting agencies (CRA's) that provide consumer credit reports; Equifax, TransUnion and Experian. These agencies maintain separate credit reports, use different formulas for determining credit scores, and have varying requirements in allowing third parties to report credit items to them. These companies may require membership fees or that applicants meet other requirements. While signing up with each of the three bureaus is possible, it is not necessary to report to them, as you can also use intermediaries.
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Pursue the foreclosure deficiency through a collections agency. When trying to collect on a debt, some lenders will hire a collection agency to work for them. These companies typically maintain memberships with the credit reporting bureaus and report credit items on their client's behalf. Whenever a collections action is initiated by these companies, either on their own or on behalf of a client, they will report the item to the credit reporting agency, eliminating the need for the client to go through he process of signing up with the agencies themselves.
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Report the deficiency through a credit reporting company. There are some companies and organizations that maintain credit reporting agency memberships but do not collect on debts. These companies are generally referred to as credit reporting services or credit reporting companies. They can file credit reports with one or more of the credit reporting agencies, though they do not file collections actions reports. They give businesses more options when dealing with foreclosure deficiency balances as they don't require initiating a collections action or signing up with the credit reporting agencies.
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