Credit report/score affect when not reaffirmed

[Patch3z]

Hello,

We filed chap 7, 1 yr ago, it was discharged in 7/2008. Our mortgage was NOT reaffirmed, our intentions at the time was to keep the house.

Now from all the reading I've done, it looks like it's a good thing we did not reaffirm......just in case. I understand we are no longer liable for the promise note, and could walk away any time. I also understand if we walk away or quit paying, the lender will eventually foreclose.

The one question I've searched for but havent found is, if we do walk away, will there now be a foreclosure on our credit report further damaging our credit?

We are trying to build our credit back up. We currently have our house for sale & would prefer to sell it instead of walking away, but worse case, if we do have to walk away, we want to know if our credit report/score will be further damaged.

thx

[Patch3z]

anyone?

[StartingOver08]

Your mortgage should show iib (included in bankruptcy). If you did not reaffirm, the foreclosure will not show on your mortgage tradeline on your credit report. If it does show after the house has been foreclosed, correct it.

[Patch3z]

Thanks...I checked my credit report and it does show "included in bankruptcy". So if I understand you correctly, if we walk away, the foreclosure should NOT appear on our credit report.

One more question:

If our current lender offered a loan modification and we accepted, would we then be "on the hook" for the mortgage? Meaning would we again be liable for the promisary note?

thanks again!

[StartingOver08]

Depends on the lender. Some of them will modify without a reaffirmation and some will require a reaffirmation. If you are upside down - don't reaffirm unless there is going to be somesort of principal reduction offered. JMO.