Posted on: 28th Apr, 2010 12:54 pm
our bankruptcy was discharged in jan 07, we did not reaffirm our home mortgage nor our home equity loan. now we are upside down on the house and struggling to make payments. we are trying to figure out our options and how it will effect our credit scores. both loans were included in the bankruptcy and discharge so neither company is reporting that we are making payments, their wording is that we are making voluntary payments and if we stop they will take action against the property not us personally. so since they are not able to report due to the bankruptcy can they report a forclosure. can we walk away? would it be a foreclosure since we hold no personal liability with the house?
Hi thefrappiers!
Welcome to forums!
As you haven't reaffirmed your mortgages while you are in bankruptcy, you are not personally liable for paying off the mortgage dues. You can walkaway from the property as you're not personally liable for the home loans. If you stop the voluntary payments, then the lender will be able to foreclose the property and recover their dues. As far as I know, the lender will be able to report the foreclosure to the credit bureaus.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you haven't reaffirmed your mortgages while you are in bankruptcy, you are not personally liable for paying off the mortgage dues. You can walkaway from the property as you're not personally liable for the home loans. If you stop the voluntary payments, then the lender will be able to foreclose the property and recover their dues. As far as I know, the lender will be able to report the foreclosure to the credit bureaus.
Feel free to ask if you've further queries.
Sussane
I am confused on why they would be able to report a foreclosure though since we are voluntarily making payments, since we did not reaffirm and the mortgage company tells us they are not permitted to report our payments because the loan was discharged with the bankruptcy. If you pull our credit report (which we have done several times since the discharge) both accounts show a zero balance, zero payment, and states discharged in bankruptcy.
Welcome alf,
Though you are not personally liable for the mortgage anymore, the lender still holds the lien on the property. Thus, he will be able to report the foreclosure to the credit bureau.
Though you are not personally liable for the mortgage anymore, the lender still holds the lien on the property. Thus, he will be able to report the foreclosure to the credit bureau.
I have bee trying to figure this out. House foreclosed in Nov. and no report to credit, which makes sense since we were not responsible. Next question is can we buy again sooner since we were not responsible for the loan.. By the way I tried to save my home but the bqnk would not negotiate becasue we did not reaffirm
Hi Cheryl,
I guess you filed bankruptcy and your property was sold off at a foreclosure auction in order to pay off your creditor. You won't be able to get a mortgage immediately after a bankruptcy discharge. Depending upon the type of bankruptcy you file, you may have to wait for 2-4 years to qualify for a loan.
Thanks,
Jerry
I guess you filed bankruptcy and your property was sold off at a foreclosure auction in order to pay off your creditor. You won't be able to get a mortgage immediately after a bankruptcy discharge. Depending upon the type of bankruptcy you file, you may have to wait for 2-4 years to qualify for a loan.
Thanks,
Jerry
im in the same situation.. filled bankruptcy 2 years ago. but i was woundering i cant sell the house for what i owe and im trying to avoid the forclosure any options? I did not reaffirm on this house. i have allready been approved for a new house so if i get the new one then walk from the old one can they come after the new house????
thanks
Tim
thanks
Tim