Please help me understand...

[cory1848]

From what I was told, it will list on your reports in the public records section as a foreclosure but in the tradelines, it should read Included in Bankruptcy. If it reads foreclosure then it is a reporting error.

That may work in your favor however. If something is reporting incorrectly, you may have a better chance of getting it removed altogether.

[bulletproof77]

Mine read as follows: Mortgage included in bankruptcy-discharged. After the bank foreclosed and it was recorded, the debt showed as "0" balance-discharged with a foreclosure as of date of trust sale...Not that I give a damn about FICO anymore...And by the way, the old myth that you can't buy another house until 3-5 years is rapidly turning into that, just another myth. I leased a house in my old neighborhood with just the intention of renting for a while. The owner/landlord approached me and asked if I would like to buy it..He holds the note as the home is paid off. He knows my recent credit history also, including the recent foreclosure. Well, as of next week we meet at his attorneys and draw up a 15 year [email protected]% with no points and nothing down. I am paying at or below current values in my old neighborhood with a fixed, no balloon note for 15 years. The interest rate isn't the greatest, but with no banks involved, I can't complain...Time to buy another lawnmower I guess..

[clamp]

If it was discharged in the bankruptcy, it will show as IIB -0- balance. If they foreclose, a bank may try and report it as a foreclosure, but this directly VIOLATES bankruptcy law. If they do report it this way, you ABSOLUTELY can contest it and get it changed back. The reason...even tho it was discharged, the bank has to go through foreclosure (if you don't do DIL or short sale) to legally get the deed in their name. HOWEVER, legally at this point the foreclosure is NOT against you, but the HOUSE. Something to keep in mind tho, while the bank can't report the foreclosure to your credit, the bureaus MAY pick it up through public record filings (your name WILL be on those papers)... but again, if they do pick it up through public records and report it, you can once again contest it and argue that it was discharged and that the foreclosure was not against you, but the property itself.... and they should remove it. Look at it this way...just because something is not supposed to happen doesn't mean it won't.... but you will have to take steps to rectify it. Just make sure to check your report annually and see that it's still not on there.