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Can foreclosure be reported after discharge?

Posted on: 13th Nov, 2006 02:07 pm
I had a bankruptcy discharged and a 1st and 2nd mortgage not reaffirmed. I was told the mortgage company can not report the payment history since the bankruptcy has been discharged. What actions can the mortgage company take if the payments are not made. If the house goes in foreclosure can the foreclosure be placed on my credit record? I am really confused at this point about what to do. Is the company allowed to place a judgement or foreclosure on my record after the bankruptcy has been discharged?

Bankruptcy discharge will eliminate your mortgage liability but the lien on the property will still remain. What this means is that after the bankruptcy is completed, the lender still has rights over the property and can foreclose.
Posted on: 13th Nov, 2006 02:15 pm
"I was told the mortgage company can not report the payment history since the bankruptcy has been discharged."
Payment history will not be reported but the lender certainly can foreclose as the lien still exists on the property.

Posted on: 13th Nov, 2006 03:13 pm
Hi Bubba,

Any debt owed by an individual prior to the date of bankruptcy filing can be included in the list of debts that he has filed. If certain debts come to his attention after the filing, he can file a Notice of Amendment when the case is still open in order to add names and debt amounts to the listing of debts. However, if the case is closed, then the person needs file a Motion to Reopen and then once the case is reopened, he can file the Amendment and add the names. However, as far as your situation is concerned, you cannot add names to the list of debts, as you have already been discharged from the bankruptcy.

I think that the mortgage company would prefer that you make all necessary payments in time, otherwise there is a chance that the company can foreclose on your house. If that happens then the company will report the foreclosure to the credit bureau and this will show on your credit report for at least 7 years.

Your bankruptcy may have been discharged, but the list of debts shown in the process did not include the two home loans. As such, if you do not repay them in time, the company can bring a judgment or a foreclosure against you and these will be shown on your credit report.

I shall suggest that you try to clear all dues on the home loans and avoid the foreclosure.

Hope I could help you.

God bless you

Posted on: 13th Nov, 2006 07:53 pm
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