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Walking away after chap 7 discharge, will it be reported on credit report?

Walking away after chap 7 discharge, will it be reported on credit report?

I am in Michigan. My chapter 7 was discharged in January 11, I did not reaffirm my home. I did not include the home in the chap 7. I still maintain payments before and after the chap 7. However, the area is becoming very unsafe and I am considering walking away, but I am scared that it may show as a foreclosure on my credit report. I discussed this with my lawyer and he stated that because I did not reaffirm the home, the lender can not legally come after me for payments. I contacted the bankruptcty department of the lender and they stated that they have stop reporting to the credit bureaus since I did not reaffirm, however, I pulled my credit report in July and I see they are still reporting. What are my options? I am thinking about stopping payments on the house and letting it go in foreclosure so that I can move to a safer area. Is it true that they can't go after me and should have stop reporting to the credit bureaus? Please help, I'm so confused


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admin
10-09-2011

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Hi mskeeish, You have mentioned that you did not include the home in your Capter 7 bankruptcy filing. In such a situation, the mortgage on the property is not discharged. So, the lender will report the account to the credit bureaus. Thus, in such a situation, if you walk away from the property, then the lender will foreclose the property which will be reported to the credit bureaus and will have a negative impact on your credit report. It will lower your scores by around 250 points. Thanks

jameshogg | Asked on 2011-09-11

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