1st & 2nd Included in BK on Credit Report???

[NotEvenADime]

I am so confused! We were discharged 10/2008 Chapter 7...keeping the house which included a 1st and 2nd mtg. We just noticed on our credit report that it is showing our 1st and 2nd (both through Wells Fargo) as being included in our BK and discharged. Both show a zero balance on the reports. We did not sign a reaffirmation as it was never offered. We have automatic withdrawals each month and are never late.

Why are they being reported this way as the house was never an issue and we thought it was left of of the BK. Doesn't this effect our credit? What happens if we ever sell the house?

[NoMoreCards]

Sounds like Wells Fargo is reporting the correct way.

Because you did not reaffirm the mortgages, they are required by law to report balance at zero and report as IIB.

The house can not be left out of the BK, you must list ALL debts when filing.

Keep up your payments, and you should have no problems down the road.

[NotEvenADime]

Sounds like Wells Fargo is reporting the correct way.

Because you did not reaffirm the mortgages, they are required by law to report balance at zero and report as IIB.

The house can not be left out of the BK, you must list ALL debts when filing.

Keep up your payments, and you should have no problems down the road.

Thank you! I didn't know this!

[NanaOf11]

That is correct BUT.... If you ever need to refi you will need to show proof of your payments as it will not show any pmts on your credit report. You will never get any score building credit from it as it will always show as included in the BK. It will show you owe $0 as that is exactly what you owe.

[2manybills]

This is true. I'm surprised Wells kept you on automatic payments. They would not for my equity line unless I reaffirmed the debt. NOT!