Posted on: 22nd Jul, 2013 12:57 pm
We filed for bankruptcy in 2010 with a discharge in Jan 2011. Included the home in the bankruptcy and did not reaffirm. Bank refused to give us a quit claim deed and officially foreclosed Friday...July 19, 2013. 2.5 years after we had the bankruptcy discharged. Last week (before the foreclosure) we attempted to start looking for a home loan as the house we are renting is no longer available. Banks told us that we aren't eligible for any type of loan because of the foreclosure and that we had to wait another 3 years AND they told us that our credit report was going to take another hit.
I cannot get any clarification on this. We included the house in the bankruptcy. Why are we getting penalized twice on our credit report? Why do we have to wait another 3 years.
Thanks!
I cannot get any clarification on this. We included the house in the bankruptcy. Why are we getting penalized twice on our credit report? Why do we have to wait another 3 years.
Thanks!
Hi Cjandjt!
Welcome to the fourms!
As you did not not reaffirm the loan, you should have surrendered the property to the lender and got it sold off. At this point of time, if the lender reports the foreclosure to the credit bureaus, then it will be mentioned in your credit and will have a negative impact. With a foreclosure on your credit report, none of the lenders will be ready to give you a mortgage within the next 3 years.
Feel free to ask if you have further queries.
Sussane
Welcome to the fourms!
As you did not not reaffirm the loan, you should have surrendered the property to the lender and got it sold off. At this point of time, if the lender reports the foreclosure to the credit bureaus, then it will be mentioned in your credit and will have a negative impact. With a foreclosure on your credit report, none of the lenders will be ready to give you a mortgage within the next 3 years.
Feel free to ask if you have further queries.
Sussane
Welcome Cjandjt,
Foreclosure is a negative item and though the property was included in bankruptcy filing, the lender has the rights to report the negative item to your credit report.
Foreclosure is a negative item and though the property was included in bankruptcy filing, the lender has the rights to report the negative item to your credit report.