I made the last payment on my house on May 1, 2009. 341 and confirmation of Ch. 13 in February 2010. Ch. 13 discharged 4/23/2014. Part of my Ch.13 plan was to return the house to the bank. The foreclosure case is still going on in the court. Anybody know what will happen here in May regarding credit reporting? The BK is discharged, it'll be 7 years since the last payment, will the mortgage just stop being reported even if the case is still going on?
-
-
Yes, if it is reported properly as included in bankruptcy, it should drop off your credit reports 7 years from date of first delinquency (I.e. first missed payment). You can check your credit reports now to make sure that it is being reported as included in bankruptcy and that they have the correct date of last payment, first delinquency or date scheduled for removal (reported date varies depending on which of the three credit bureaus). If not, you can dispute to get it corrected.
With the bankruptcy you are no longer personally responsible for payment, so the debt doesn't belong on your personal report beyond the 7 year reporting period. Essentially, a mortgage establishes the property itself as having a responsibility for the debt and foreclosure is the means by which the property can be made to pay. This has nothing to do with your personal credit once the property and debt were included in bankruptcy and discharged.
Definitely dispute if the creditor tries to report both bankruptcy and foreclosure. Seterus tried to do this by putting a note about foreclosure proceedings in the remarks section for my mortgage. I disputed and this was removed. Now, I just need to get them to report the last payment date correctly so it will fall off in July. I'm in the same situation with foreclosure still pending.
Comment