How does a short sale show up on a credit report after a Chapter 7?

[DirkDiggler]

Ch. 7 was discharged in March 2012. Short sale recorded the last week of November. Obviously nothing has hit my report yet, but how should it look when it does? Or will it even show? Both my 1st and 2nd mortgages are showing "Included in Bankruptcy" on my credit reports...just curious as to what it should look like once it hits my reports. Thanks!

[justbroke]

It will likely still read Included In Bankruptcy (IIB) with a balance of $0.

[Charlie777]

Your debt was discharged, nothing can show up on the tradelines for the mortgages dated after your discharge (some say filing) date. Your mortgage lines should show zero balance, IIB. This is relevant for your credit score.

The date the deed was transferred out of your name is tracked in another system for mortgage lenders, and you must answer the question on a mortgage application truthfully or risk a fraud charge.

You probably won't be able to get a mortgage until three years from November at the earliest.

[SwingLine]

You probably won't be able to get a mortgage until three years from November at the earliest.

If the mortgage was included in ch. 7 and was a conventional loan (i.e., not FHA/Hud), you can get a new FHA mortgage 3 years after discharge date. I know because I just did it. Some mortgage companies will not go for it and will make you wait until 3 years post deed transfer, but this is not what FHA actually requires. It's just a matter of finding a mortgage company that will go for it. After having my first application rejected for this very issue, I quickly found another lender (RoundPoint, a national, direct lender out of Charlotte, NC) that would do my loan (I was post-deed transfer by 2 years, 10 months and post discharge 4+ years at the time we closed). I also easily found two local backup lenders ready to go who confirmed they could do the loan if the other lender fell through. Turns out, the backups were not necessary as Roundpoint got it done. We ended up getting a 30 year FHA loan at 3% with 3.5% down from Roundpoint with no surprises and no drama.

Because FHA is vague on their seasoning requirements for foreclosure/short sale included in BK, some lenders will take the conservative route and require at least 3 years post deed transfer. Those lenders who have a close relationship with FHA understand that a foreclosure that was discharged in BK allows the 3-year seasoning clock to start ticking at discharge, rather than deed transfer date.

[DirkDiggler]

Thanks guys, not too worried about buying for at least another 2 years, we signed a 2 year lease on our current place and I still need to find a job! Just was curious if I should look for anything on our credit report regarding the short sale Thanks!

[ace300s]

Your debt was discharged, nothing can show up on the tradelines for the mortgages dated after your discharge (some say filing) date. Your mortgage lines should show zero balance, IIB. This is relevant for your credit score.

I've been wondering about how my mortgage and forclosure can be reported on my credit reports? I filed for BK7 in 02/12 and discharged in 06/12. My mortgage was discharged in BK7.

This is the strange part....A major lender brought my loan in 2004 but never reported anything on my loan to the credit reporting agencies....All the on time payments...Nothing! When I stopped making payments prior to BK7..Nothing! My mortgage with this major lender has never showed up on any of my credit reports. BTW, I never noticed the non reporting until filing BK7.

Now I haven't made a payment in over a year and I'm waiting for the foreclosure process to start.

Here's my question. What can the lender report now? Can they all of a sudden report I'm late? Can they still report a foreclosure? Very strange!

[LadyInTheRed]

Here's my question. What can the lender report now? Can they all of a sudden report I'm late? Can they still report a foreclosure? Very strange!

What you quoted from Charlie777 answers your question.