Does your credit take a second hit when foreclosure happens a year after discharge?

[debbie42]

Hello, last December we were discharged in FL, Ch.7 - house was included and we left 2 months after filing as instructed. We have been working at getting our credit repaired, etc. and renting a house after leaving the old house. The bank who owns our house just got a release on 2nd mortgage and is now finally ready to foreclose, or so I thought - got a call saying they will do a deed in lieu and do not report it to credit agencies and said thatis better for us than a foreclosure.

SO my question is (really with bk or DIL) - does your credit take a second hit when the foreclosure or deed in lieu actually happens a year or so after the bk???

Thanks for any help you can offer.

[bk2009]

Yes, is my understanding. Don't tell them that you're not living in the house and try to work a cash for keys out with them.

[helpme2010]

crap. I was assuming that the bk would cover the foreclosure and no additional hits would be added to the credit report.

[ccsjoe]

It is my understanding that the foreclosure, separate from the bk, will be on your credit, however, the actual hit will not happen again, it is covered in full by the bk and the lender showing the mortgage as IIB.

[DebtEnder]

This has been asked and answered many times on this forum. After BK assuming you did not reaffirm then nothing else can cause any change to your credit report. However there is a separate recording systems, starts with a c, that will record the non sell or full payoff of the lien and THAT will block you from FHA/conventional financing for the next 3/4 years respectively. Someone just posted about how they were still in the system in spite of a divorce, and subsequent ex taking full ownership of house and getting foreclosed on years later, and the run around she is going thru to get out of that system.

[SunshineGal]

This is the "C" that DebtEnder is talking about.

http://hud.gov/offices/hsg/sfh/sys/caivrs/caivrs_faq.cfm