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Guest

My husband and I filed for bankruptcy in September 08 after I lost my job. We did this to eliminate our unsecured debt and free up the cash to continue to make our house payments. Our attorney petitioned Citi Mortgage to reaffirm our mortgage. Our bk was discharged in December and I pulled our credit report to see that the mortgage account has been closed with a zero balance and was included in our discharge. Citi has told us that we can reaffirm IF the judge reopens the case and we were told by our attorney that he will not. We can continue to live here and make payments but they will not be reported. If we are essentially "renting" our home now, we can rent something much nicer for far less (we bought at the height of the bubble in 2007 and our house is not worth almost $50K less than our mortage is for). My question is this...if we walk away can the mortgage company report a foreclosure on a loan that was already discharged? Should we do a DIL - do we even have to do that since the mortgage was discharged. We were told by our attorney that we should act quickly if we are going to give up the house so it is seen as one hit. Any help would be greatly appreciated. Thanks.

jerry · Posted: Mon Jan 19, 2009 3:13 am Post subject:

Hi,

Though your bankruptcy was discharged, still the lender has the right to collect the mortgage dues from you. If you walkaway from the property, the lender will have the right to foreclose the property. The foreclosure will also badly affect your credit and will lower your credit score by 250 points.

You can definitely apply for a deed in lieu with the lender. You will have to write a hardship letter the lender. It will be lender's discretion whether he will accept the deed in lieu or not.

Thanks,

Jerry

Guest

We filed for chapter 7 and our house was included. All the debt in the chapter 7 was discharged, my question is are no longer responsible for the propert now that it has been discharged, or are we still responsible until the bank forecloses on the propert and gives us notice to vacate.

jameshogg · Posted: Wed Apr 08, 2009 9:58 pm Post subject:

Hi Kimberli,

Though your bankruptcy has been discharged, the bank still holds the lien on the property. If you do not pay the debts, the lender will have the right to foreclose the property. This foreclosure will badly effect your credit score and credit report.

Thanks

Guest

I filed for chapter 7 and my house and my rental property was included(did not reaffirm houses). All the debt in the chapter 7 was discharged. My rental property was foreclose on by the banks and the second house is in the process of being SOLD on a short sale(Banks approved). My question is will i be held resonsible for the the short sale home financially/ taxes because of how much the banks are losing on the short sale or is it part of filing chapter 7. Thanks

adonis · Posted: Fri May 22, 2009 1:46 am Post subject:

Once your bankruptcy is discharged, you'll not be personally responsible for the payments. However, this short sale will definitely effect your credit score.

Guest

Can someone provide a definitive answer on this. Some say the mortgage discharge will be listed separately if the mortgage company forecloses after the discharge, others say it will be listed as part of the discharge. Which is it? Due mortgage companies purposely delay foreclosure until after the discharge, just to mess with your credit? It has been five months since I made a mortgage payment and they still have not started foreclosure proceedings.

smithsussane · Posted: Tue May 26, 2009 9:46 pm Post subject:

Hi Guest!

A query similar to yours has been answered in the given link:
http://www.mortgagefit.com/bankruptcy/discharge-reaffirmloan.html#9796 7

Please have a look at it. I hope it'll help you.

Sussane

mntnmama · Joined: 02 Jun 2009 Posts: 5 2.89 Dollars($)

We recieved a Chpt 7 discharge in 07 and our mortgages report as included in bankruptcy our current lender and FHA underwritter have given the go ahead to look for a home. Our credit is up at 700 only 24 mo after discharge and no foreclosure is on report.

Guest

Did you live in the home after discharge? Did you reaffirm the debt? Did you sell the property or walk away, etc. When you say you have the go ahead, are you out of your house that was tied to the mo0rtgage in the discharge?

smithsussane · Posted: Sun Jun 07, 2009 8:56 pm Post subject:

Hi mntnmama!

Welcome to forums!

As 2 years have passed since your chapter 7 bankruptcy has been discharged, you can definitely apply for a FHA loan. However, if you want to go for a conventional loan, you will have to wait for another 2 years.

Feel free to ask if you have further queries.

Sussane

Guest

No they cannot report your foreclosure if you did not reaffirm!! That MUST be listed on your credit report as part of the bankruptcy by law. If they add anything to your credit report about foreclosure after your discharge debt, contact the credit bureau demanding removal. I would get a lawyer to get compensation for the damage they did to your credit.

Guest

No matter what they do with the home after you did not reaffirm in your bankruptcy, cannot legally affect your credit.

Guest

I filed for bankruptcy 2/08 (as a result of a divorce 5 years before, trying to rebuild my career, and buying a house that was really more than I could afford). It took over year, but my BK was finally discharged this past March 3/09. My home was NOT reaffirmed with my BK. I am trying to decide now if it makes sense to try and work something out with the banks after the fact - or walk away from my home and rent. As the person noted above, I am upside down at least 50-80K and could actually find something nicer/bigger for the same monthly payments to rent. If what I just read above is correct.... the forclosure will not be an additional hit to my credit (over an above the chapter 7) - correct? Any clarification on this would be greatly appreciated! This is such a big decision...and I want to make the right one.

Guest

Kdecker, we did exactly what you are, and decided to walk away and rent something for a couple of years. Forclosure is not an additional hit on my credit. I also had 20 rental properties that I surrendered as well as my primary and none are additional hits. The person saying it lists as separate and will lower your score 250 points either doesn't know what they are talking about or has ulterior motives. I am telling you from experience!!

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