Mortgage not reaffirmed? What am I?

[madhattr]

Ok, here's the deal. Opened a business, business failed. Wife and I personally filed back in June. Discharged September 22. Home and vehicle were supposed to be reaffirmed. The home mortgage was not reaffirmed and was discharged. We have never been late on either car or home. We are staying in our home and have talked with the lender and everything stays the same regardless of reaffirmation. Only thing, nothing gets reported on my credit report from the mortgage. My debt to income ratio is now really low. What do we put on a credit application if we to ever fill one out? Do we say we just own or we own with mortgage payments? Are we in a good spot? The house, car, and some school loans are the only things we owe. Car will be paid off in February.

[justbroke]

You are in a good spot. What type of credit application are you completing? I personally would still list your housing status as "own" and list the mortgage payment as the payment amount.

[madhattr]

None at the moment. I was just curious as to what I would need to put on if the time came. I thought I would be able to put own with no mortgage payment since it shows on the credit report as no mortgage. I know that means they could approve me for much more, but I would definitely stay within our means. Timing couldn't have been any better. Since the time we filed and the time we were discharged, we both have considerably increased our incomes.

[justbroke]

We are all on the fence as to what one should put on a credit application when the debt was discharged on a home that you own. The general consensus is that we should list the actual mortgage payment. Some have opined that putting $0 would be okay.

However, putting $0 for the payment for "own" may cause some unwanted questions. It may cause an underwriter to flag the application since there are very few people that own an unencumbered own home. That's just theory as well, so we don't really know.

[maddog2112]

This sounds like the same question I had a little while back. I have purchased a vehicle, and am on my second credit card. I keep my limits at 1000 dollars or below so I will not ever get into the same old cc debt problem in the future. I actually keep my balances very low and use them just to rebuild credit. Unfortunately, in this life you actually do need a credit score, unless you are flush with cash. I never reaffirmed my mortgage or 2nd. I never mention the 2nd, but do write down my actual mortgage amount and have never been asked any questions.