Discharge Vs Foreclosure

[325Falcon]

Dishcharged Jan,08 have stayed in home and made payment without reafirming. House was included in BK.

If we choose to walk away from this home for the purposes of getting a new mortgage FHA or VA would the timeframe start from the date of discharge or the date we walk away and let the bank foreclose?

Since the home debt was discharged can the bank report to the credit agencies any late payments and/or foreclosure?

[brokeballer]

I believe, but not certain, that the clock starts after you officially foreclose. The house is still in your name at this time.

As far as credit report, you should not receive any late/non payment remarks after your BK was discharged.

[monkatom]

I am doing the same thing and my understanding is the 3 year clock starts after the house is foreclosed and out of your name. So even though my chp 7 was discharged May 08 my house is not going to be sold until Sept 09 so the three year date starts Sept 09. No the bank does not report the foreclosure (or should Not) but any under writer will see the house as IIB and do a title search etc and see you let it go to foreclosure.

[Funk4Crunk]

Clarification: The date a foreclosure judgment is granted is *not* the date that the deed is transferred out of the defendant's name (that statement may be *state* specific).

As far as I have been able to research online, I continue to be liable for vandalism, etc. until the property is *settled* to a new owner, via sheriff's auction, short sale, or other transfer.

Also, there are many local code violations for vacant property (and property insurance may be null and void after 30 days of vacancy).

I am *not* an attorney.