top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Discharge and effect of Foreclosure

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Discharge and effect of Foreclosure

    I was discharged in Sep. 2010, I had a rental property in Arizona that I did not reaffirm, I was interested in modification but the modication was going to have me owing way more that I owed before and the house is underwater by $100,000.00

    Supposedly if I dont sign the modification the house is up for auction on 2/23, how will that affect me? Will I have a BK and foreclosure on my record? Will that cause another negative mark on my credit?

    Will I have to wait longer to be able to buy another house?

    Thanks for your help.
    Tags: None
    #2
    If your house was given up in the bankruptcy then it won't add another ding as far as I'm aware.

    Comment

      #3
      The completion of the foreclosure (actual transfer) is the date the clock starts ticking for you to qualify for a new mortgage. (3yrs FHA, 5yrs conventional etc.)
      Your mortgages and all responsibility to repay them is gone and will not effect your credit report anymore; however, you will still get a additional public record for the foreclosure once it is completed. This will mean two public records on your credit report, one for BK and one for Foreclosure.

      There is still some debate out there that nobody for sure has been able to answer if this additional public record effects your credit score again or lowers it further.
      Some say yes, some say no, this lawyer says this and that lawyer says that etc.. etc.

      I am in the same boat right now and the end is inevitable so I will just have to wait and see if the foreclosure effects my credit further. Right now, I just don't know for sure.

      ST
      Filed 7 - 7/8/10, 341 - 8/17/10 - Continued, Presumption of Abuse Filed - 8/27/10
      Report of No Distribution 9/27/10. Discharged 2/7/11 Closed 02/25/1
      10/12 EXP. 681

      Comment

        #4
        In my case, I received absolutely no public record on a (investment/rental) property that was surrendered in bankruptcy and foreclosed upon. I did receive a 1099-A/C.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment

          #5
          Hi JB,

          I hope for me and everyone else that's the case as well. It would be great just to let the old debt die and get a move-on without any further sanctions..

          I am gonna check my in-laws credit report and see what it shows. They also did the Chapter 7 and foreclosure last year.


          ST
          Filed 7 - 7/8/10, 341 - 8/17/10 - Continued, Presumption of Abuse Filed - 8/27/10
          Report of No Distribution 9/27/10. Discharged 2/7/11 Closed 02/25/1
          10/12 EXP. 681

          Comment

            #6
            I had more than a few investment properties surrendered in bk that were foreclosed on after the fact. None of them show on my credit reports.
            All information contained in this post is for informational and amusement purposes only.
            Bankruptcy is a process, not an event.......

            Comment

              #7
              What about if the foreclosure was filed before discharge? I filed BK in June 2010, Wells Fargo filed foreclosure on 7/2010 and to this day, the property is still in my name and about to go on sale on 2/23 (supposedly)...Is the Foreclosure filing already on my record?

              Comment

                #8
                A foreclosure before filing should be on your credit report.
                All information contained in this post is for informational and amusement purposes only.
                Bankruptcy is a process, not an event.......

                Comment

                  #9
                  I just confirmed with my in-laws after checking their credit report. They have no foreclosure reported after completing their chapter 7. This is very good news to hear.
                  Filed 7 - 7/8/10, 341 - 8/17/10 - Continued, Presumption of Abuse Filed - 8/27/10
                  Report of No Distribution 9/27/10. Discharged 2/7/11 Closed 02/25/1
                  10/12 EXP. 681

                  Comment

                    #10
                    Originally posted by screentest View Post
                    I just confirmed with my in-laws after checking their credit report. They have no foreclosure reported after completing their chapter 7. This is very good news to hear.
                    Thank god screentest. I mean how many negatives can we get to hurt us? I already know there will be a big hurdle with interviewing when they see my bk. The less I have to bring up, the better. But there comes a point when you simply have to look out for your very survival, such as declaring bk or foreclosing. You have no choice, unless you want to be permanently hooked up to a blood donating machine or want to rob banks to fuel your house payments.

                    Thats the point where I said I simply don't care anymore about what this will do to my credit. I have to survive and I have to do something now.

                    Comment

                    Previous template Next

                    bottom Ad Widget

                    Collapse
                    Working...
                    X