Question on Home Not ReAffirmed in 7/09 BK But Still In. Credit Report

[booboo]

Shows that this debt was discharged in BK, but we chose to stay in home, since rent would, in most cases be more
expensive. I do understand that if 6 years from now, or whenever we can walk away without looking back, since
it was included and not reaffirmed.

My question is this, our credit report shows this home included in BK, and lets say we decide to walk away in 6 years, the BK will almost be off our credit report, but if we walk away, and decide not to sell the home because of being underwater, or
for what ever reason, we just walk, will they just take the home back without going through a foreclosure procedure? If they have to go throuogh a foreclosure procedure, will that now show on our credit report as a foreclosure after our BK is off the credit report?

We decided NOT TO REAFFIRM because of the obvious (housing crash) and if the home gains in value, we can sell it to get some money out of the sale, but we ask this question if it does not. We Do not want to, after 10 years, get a huge "DING" because of a foreclosure report.

Any thoughts would be appreciated?

BooBoo

[tobee43]

the bk is 10 years but the forclosure is 7. so if you walk away in 6 years you will have 4 left to go on your bk but 7 years to go from the date the house foreclosed on.

if you do them around the same time, they would both be removed....



Foreclosures and Your Credit Report

"when a foreclosure gets reported to the credit bureaus, you can expect your credit score to drop by as much as 150 points. in most cases, borrowers who have dealt with foreclosure are granted “subprime status”, which means they aren’t eligible for attractive interest rates in the near future. like bankruptcy, a foreclosure is considered to be a serious delinquency and will stay on your credit report for up to seven years from the date of filing.even when you meet a lender’s requirements based on a past foreclosure, an underwriter will still see you as a risky candidate for another mortgage and you may find it very difficult to
get the loan you want.

it is possible to have the foreclosure removed from your credit report, but this can be a very lengthy process and will require some strong negotiation skills.

when you have bankruptcy or a foreclosure in your credit history, it’s even more important to make sure you are keeping up with other bills and working towards repairing your credit. you may need to wait several years before your credit score improves after the negative impact from these credit problems, but you will be able to remove them from your credit history completely within seven to ten years."

[daytona]

I don't know this for sure...but I'm thinking the foreclosure would not be reported on your credit report at all. If the house was included in the BK and NOT re-affirmed.. then technically I don't think the bank could foreclose on "you" as the debt was already discharged in your BK. What they would likely do is an "In Rem" foreclosure on the property (I/E just on the house) and name you as an "interested party" in the suit. (For sure they cannot come after you as it would be a discharge violation) Hopefully other experts will chime in...but I don't think they could, or would, report the foreclosure on your credit report. FCRA issue perhaps?

[sh9730]

The foreclosure MAY not get reported on your credit report (Ive read it both ways from various places) if you leave later and dont sell it in a proper manner. Even if it does NOT show up on your actual credit report, it WILL show up as a new public record as of the date of foreclosure, and you will be required to disclose that on any future mortgage applications if you try to buy another home.

So, even though I did the same thing as you (didnt reaffirm but am staying and paying on my house), there still is a negative consequence that can occur if these two things (BK and foreclosure) are not done at the same time..

[tobee43]

I don't know this for sure...but I'm thinking the foreclosure would not be reported on your credit report at all. If the house was included in the BK and NOT re-affirmed.. then technically I don't think the bank could foreclose on "you" as the debt was already discharged in your BK. What they would likely do is an "In Rem" foreclosure on the property (I/E just on the house) and name you as an "interested party" in the suit. (For sure they cannot come after you as it would be a discharge violation) Hopefully other experts will chime in...but I don't think they could, or would, report the foreclosure on your credit report. FCRA issue perhaps?

i think they could, and the problem with that is, like in the state we left our property over 4 years ago, the bank has made absolutely NO movement on foreclosing...not a bit. now, in that state, which is nj, the statue of limitation for a deed transfer is 20 years. so, and this really gets me, the bank actually has 20 years to decide to ever foreclose. can you imagine this???? and, since our names are still on the deed i'm certain a credit reporting agency would pick it up when they reviewed the county court filings and could report it. what a mess!

we are lucky at this point and have already purchased another home. i just know in the future if chase ever does decide to move on our old home it would not surprise me to see this creep up on our credit report. of course i would fight it, tooth and nail, but i don't know if that would work. also, i'm not saying they would always report it, i just think the chance is there.

[btbeme]

i think they could, and the problem with that is, like in the state we left our property over 4 years ago, the bank has made absolutely NO movement on foreclosing...not a bit. now, in that state, which is nj, the statue of limitation for a deed transfer is 20 years. so, and this really gets me, the bank actually has 20 years to decide to ever foreclose. can you imagine this????

Should I ever need to move to NJ, at least I know who to call to get a cheap rental home.