My credit file is nearly clean now after hard work paying off debt/chargeoffs from 2011. During this 2011 situation we lost our home and a balance was left on the second mortgage we had. It was originally Irwin Home Equity which was then sold to Green Tree before we defaulted.
Green Tree for years reported it as a TYPE of Mortgage and just two months ago deleted the old listing and relisted it as a new account in collection and showing late and most importantly has changed the credit type to REVOLVING. Is this legal for them to do? It was a fixed installment (not a revolving credit line). As a result I believe it is what is tanking my scores.. as it is showing as a new tradeline massively in default and under the category of revolving instead of mortgage.
The date of last payment is listed as 08/19/2011. My understanding is that the SoL in Texas is 4 years so they have approximately one month to attempt to get a judgment on it (im doubting they will) before it becomes uncollectable. For what it’s worth, I haven’t received a collection call from them since 2011.
Is there anything I can do to lessen the blow? Obviously I could try a Texas DV letter, but is there any other type of dispute I should try to have it recategorized? It wasn’t hurting me the way its hurting me now… almost as if they renewed it as a new debt.