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can i walk away and not have foreclosure on credit?

Posted on: 26th Dec, 2010 03:30 pm
Hi, I had a chapter 7 discharged in 12/09. My mortgage statements just started saying "voluntary" on them. I never signed a re-affirmation. But, on my credit report, there is NO indication of this mortgage AT ALL! Ive paid for 15 years on it.
The other loans/charge accounts are listed on my credit reports as discharged in chapter 7, can you tell my why my mortgage isn't listed at all?

Will it be listed as discharged AND foreclosure once i stop payments and they foreclose? and will i have to wait 2 years from THAT point to apply for FHA on a new home? What would be the best thing for me to do right now? I thought of staying in the home, not making payments and saving what i would be paying as morgtage payments for a down payment on a new loan. I owe more than this house is worth and it seems like a losing battle. I think it would be at least 6-8 months in my state before i would have to move out and rent for awhile.

Thank you
Mary
Welcome runlong,

Are you making voluntary payments on your mortgage after your bankruptcy has been discharged? If yes, then that's the status mentioned in your mortgage statements. As you haven't reaffirmed the mortgage, you're not personally liable for paying off the mortgage. Thus, the lender is not liable to report anything to the credit bureaus regarding the account.

If you let the lender foreclose the property, then the foreclosure will be mentioned in your credit report but the lender won't be able to come after you for the deficient balance as the mortgage has been discharged in your bankruptcy filing.
Posted on: 26th Dec, 2010 07:02 pm
Thank you for your reply, Adonis
One question though, will they be able to mention the foreclosure on the credit report as separate from the bankruptcy? In other words, will the foreclosure date be listed even though the debt was already discharged? I am confused on that.
I am wondering if I will have to wait longer to get into a new loan/home if the foreclosure comes almost two years after the discharge
Posted on: 27th Dec, 2010 06:40 pm
Hi Guest!

Welcome to forums!

As far as I know, though the debt was discharged in your bankruptcy filing, the foreclosure may be mentioned in your credit report.

Feel free to ask if you've further queries.

Sussane
Posted on: 27th Dec, 2010 09:14 pm
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