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Bankruptcy Discharge & Foreclosure

Posted on: 30th Aug, 2009 10:23 pm
I'm in California. Chapter 7 discharged, but trustee selling an asset so our case is "open." I did not reaffirm mortgage on house; the crecit report shows the mortgage "included in bankruptcy."

BofA has not yet gotten around to foreclosing although they say they will. Once they have foreclosed, are you saying that this actual foreclosure will NOT be listed separately on the credit report ????

Can anyone cite any law regarding that, because BofA has been very difficult to work with (I was originally w/ Countrywide and BofA bought them.) I cannot get any real consistent answer and as I'm working on rebuilding credit, it would be very helpful to know how huge a hit my credit will take -- the BK is bad enough, but to top it off with a foreclosure in the near future is awful. And BofA is not rushing to foreclose for some odd reason.

Anybody know ????
Though you did not reaffirm your mortgage, it was included in your bankruptcy filing. Though your debts were discharged through bankruptcy, the lender still holds the lien on the property. Thus, he has the right to foreclose the property. If you had reaffirmed the mortgage and paid off the mortgage dues, then the lender wouldn't have foreclosed the property.

I won't be able to cite any law but as far as I know, this foreclosure would affect your credit score and may lower it by 250 points.
Posted on: 31st Aug, 2009 03:07 am
So what you are saying is that the BK "protection" does not prevent the foreclosure from being reported separately on the credit reports, yes ? Then our score will drop 250 points from where it is now (710).

It would be nice to have the foreclosure started, because it's been 13 months now. BofA won't tell us how long it will be until they foreclose. But we cannot move forward (like to buy a house) until the foreclosure is completed, for another 3 to 5 years, depending on who we talk to. The BK is now in the past, but this pending foreclosure is simply dragging on and on.

Anyway to get them to speed it up ??? Because we are still "open", we can only talk to the people in the bank's BK dept.
Posted on: 31st Aug, 2009 09:03 am
Hi marilyn,

The foreclosure will get reported to your credit report. You can contact the lender and ask him to speed up the process. You will have to negotiate with them so that they complete the whole process asap.

Thanks
Posted on: 31st Aug, 2009 11:43 pm
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