Posted on: 21st May, 2010 04:20 pm
i got into a bad home loan and ended up in a chapter 7 bankruptcy. i had a credit score above 730 when i took the loan.
the debt, including the bad home loan was discharged last summer. and after a low score of 524, i have got my score back up above 630.
we are still in the home and are waiting for them to give us the notice to move(we are told they will give us 30 days) now i have saved up 10k, my score is above 630, and i have no debt. but will they forclose on the house and will that show on my credit score even though the debt(loan) has been discharged through chapter 7? and how much will it lower my score?
should i apply for a mortgage again before that happens? will the price of homes rise before next spring(when i planned on having a higher score and more money)? can i even get a mortgage again?
the debt, including the bad home loan was discharged last summer. and after a low score of 524, i have got my score back up above 630.
we are still in the home and are waiting for them to give us the notice to move(we are told they will give us 30 days) now i have saved up 10k, my score is above 630, and i have no debt. but will they forclose on the house and will that show on my credit score even though the debt(loan) has been discharged through chapter 7? and how much will it lower my score?
should i apply for a mortgage again before that happens? will the price of homes rise before next spring(when i planned on having a higher score and more money)? can i even get a mortgage again?
Hi vac_storm,
Though your mortgage has been discharged in your bankruptcy filing, the lender holds the lien on the property. He will foreclose the property but won't come after you for the deficient balance resulting from the sale. This foreclosure will have a negative effect on your credit report. It may lower your score by 250 points. Immediately after a bankruptcy filing, you won't be able to get a mortgage.
Thanks
Though your mortgage has been discharged in your bankruptcy filing, the lender holds the lien on the property. He will foreclose the property but won't come after you for the deficient balance resulting from the sale. This foreclosure will have a negative effect on your credit report. It may lower your score by 250 points. Immediately after a bankruptcy filing, you won't be able to get a mortgage.
Thanks
Ok, well, they are still offering a short sale solution. If I go the short sale and avoid forclosure, how much will that hurt my credit?
Welcome vac_storm,
After a short sale, your credit score would get lowered by around 80-100 points.
After a short sale, your credit score would get lowered by around 80-100 points.
Ok, so that would be a better idea then. I wouldn't have to pay taxes on what is owed because the debt has been discharged through chapter 7. So sell the house before they go through the forclosure procedure. They save money not having to go through foreclosure and it effects my credit less than a forecloser. Thnx