Complaint Review: Ford Motor Credit

Please help. In 2000 I was in college and my dad co-signed my FMC loan. I made the payments, on time, every month. In 2005 my dad filed bankruptcy. No one - not his lawyer, not FMC, inquired about re-affirming on the loan. Shortly after, I tried to make a payment by phone and was denied. That's how I discovered FMC placed the loan in default because of dad's BK. They instructed me to continue to make the payments - by check only, by mail, to their collections address. I did that.

I bought a house during that time and FMC showed my account as non-active. During that time I bought a house and had to have the mortgage company call FMC three-way so that they could explain about my dad filing BK and that was why the loan was just "sitting" there on my credit report. NOW - 3 years later - it shows in default/paid after bad debt. My homeowners just went up 102% because of this! I'm so angry. I didn't file BK, yet this is really hurting my credit. I'm a struggling teacher and a single parent and the amount my mortgage is going to go up is really going to hurt me financially. Any advice? Recommendations?

DesperateHomeOwner
Westfield, Indiana
U.S.A.