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foreclosure after BK discharge

Posted on: 16th Aug, 2011 08:08 am
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filed 12/22/09; discharged 3/22/10; included home and home equity loan in bk. did not reaffirm but continued to pay until july 2011. credit report shows "discharged in bk": with no records of any payments past 3/22/10. have stopped making payments as of aug. 2011. still living in house. not sure if we should go short sale; foreclosure; deed-in-lieu of. also see conflicting remarks regarding how this is going to affect our credit scores (762; 766 and 767 at the moment). live in ct.
hi meandher,

as you haven't reaffirmed the mortgage while you were in bankruptcy, though you make the payments, it won't be mentioned in your credit report. this is because, you're personally not responsible for the mortgage payments. you can surrender the property to the lender and ask them sell off the property either through a short sale or a deed in lieu of foreclosure.
Posted on: 16th Aug, 2011 08:00 pm
Thank you Adonis. I think we will try to pursue the deed in lieu of foreclosure.
Our credit scores are good to excellent and am very concerned in doing whatever will not affect them.
Posted on: 18th Aug, 2011 11:14 am
Hi Meandher,

Deed in lieu of foreclosure will have a negative affect on your credit scores. It will lower your credit scores by around 250 points.

Thanks
Posted on: 18th Aug, 2011 10:00 pm
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