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How does mortgage ch 7 get show in county records in VA?

Posted on: 14th Sep, 2011 11:23 am
we filed ch 7 in Jan 09. the mortgage was discharged in May 09 and we did not reaffirm, we actually moved out in Jan 09.

We are looking at buying the home we are renting. after pulling the credit reports we qualify for an FHA. one of the reports shows the mortgage as in foreclosure and the others showed as discharged. We got this fixed.

now the underwriters have found that the bank has it listed with the county as a foreclosure. Is that correct?

basically it's putting our home purchase 8 mths out.
Yeah, if there is a foreclosure on record, FHA you have to wait 3 years, unless you can document unforeseen hardship such as death of primary wage earner. In 8 mos, the market wont change much, improve your credit, save more money for down payment, and the 8 mos will fly by.
Posted on: 14th Sep, 2011 11:52 am
so the foreclosure happens even if it's discharged in the bankruptcy? so credit reports will say one thing and county records something else?

no wonder the mortgage / banking industry is a mess
Posted on: 14th Sep, 2011 12:08 pm
I am not a BK expert, there may be someone on here that has more BK experience. The BK as far as I know, does not fully protect your home forever once the BK is over.
Posted on: 14th Sep, 2011 12:17 pm
yeah my question is how it get's reported to the county since credit is good.
Posted on: 14th Sep, 2011 12:23 pm
Hi Guest,

Though your credit is good, bankruptcy filing will be reported in your credit report normally. It will be mentioned that you filed Chapter 7 and it will reduce your credit score by around 200 points. Apart from that, Chapter 7 bankruptcy will be reported in your credit report for the next 10 years.
Posted on: 14th Sep, 2011 08:04 pm
credit isn't the issue, credit is fixed, it's how it shows with the county. it was reported as foreclosure and not sure if that is correct or if it could shown a different way. Reported to the county as foreclosure makes it a 3 year wait instead of being able to buy today.
Posted on: 15th Sep, 2011 06:20 am
Posted on: 15th Sep, 2011 06:29 pm
thanks for the replies. I guess what folks are missing is this is not a Credit Report issue. This is how the home mortgage was filed with the county of residence. Our credit reports do not show a foreclosure, the county record shows the home was foreclosed. I'm trying understand if there is a way for that to be corrected.
Posted on: 16th Sep, 2011 06:36 am
Hi Guest!

Welcome to forums!

If you want to correct that, then you need to contact the county recorder's office for the same. You can also ask the lender to rectify the information at the county recorder's office if you feel that wrong information has been updated there.

Feel free to ask if you've further queries.

Sussane
Posted on: 19th Sep, 2011 10:00 pm
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