What to say about non reaffirmed mortgage when rebuilding credit

[maddog2112]

My ch7 was discharged in aug of 09 and I did not reaffirm my 1st or 2nd mortgage. I have been paying them both on time thru the bk and ever since. I have one 500.00 limit credit card , always current and have been able to obtain an auto loan 1 year ago. My question is, what do you say when they ask about you owning or renting.? I checked my credit report and it shows zero balance on 1st and 2nd and that they were included in ch 7 discharge. Even though I have been paying them on time, it does not show that. It actually shows as no mortgage, but I usually include my mortgage payment on any application I fill. I`m trying to get my ducks in a row for an auto loan I will need next spring.

[dspii]

You own it if your still paying the mortgage........

[mrslick]

maddog, my advice to you is to say you own vs rent. the deed still says your name and you're still responsible for taxes and you have to be truthfull when filling a loan application.

[LoveBubble5]

The house is still yours under the original loan agreement, therefore as long as you're paying on it you still own it. Not reaffirming the mortgage simply means you are no longer liable for that debt; should you decide to walk away now, the bank cannot sue you for payment or possible lost money (in a case where the balance of your loan is bigger than what the house may sell for). This can be looked at as good and bad: good in a case where you might be late on a payment because the bank will not report this to any credit agencies; bad because your on-time payments are not being reported either so as to help build your credit faster.

However, you state you've gotten some major (IMO) credit since your discharge. The fact that you've already gotten an auto loan is a good indication that you'll get another auto loan in the future.

Every creditor is different though. I've read some strange things on this forum about people who've gotten major credit cards, HUGE limits, within very short amounts of time after discharge. You won't know until you apply... but again, I think just the fact that you already have an auto loan will help in the decision as to whether or not to give you another auto loan.