Posted on: 28th Jan, 2013 02:09 am
Hi there… I need your help. 2 years have passed since we filed bankruptcy Chapter 7 discharge and mortgage was included in discharge. I did not reaffirm the loan. We have stayed current on the mortgage but credit score shows chapter 7 for the mortgage and no activity on it since the discharge. We are now considering walking away from the house/mortgage. How will the foreclosure be reported to the credit bureaus?
Hi Bolona,
A foreclosure will be reported to your credit report if you walkaway from the property and the home is foreclosed by the lender. It may even reduce your credit scores.
Thanks,
Jerry
A foreclosure will be reported to your credit report if you walkaway from the property and the home is foreclosed by the lender. It may even reduce your credit scores.
Thanks,
Jerry
If the mortgage was not reaffirmed and was discharged in bankruptcy, simply transferring the property to the lender to prevent a foreclosure proceeding may be your best option. By doing this there might not be any additional reporting to the credit bureau as the lender stopped all reporting when they were notified of the bankruptcy. You should contact your bankruptcy attorney for his advice on how to best accomplish this.