POST BK Options (no reaffirmation)

[bankruptsee]

I had a discharge CH7 in October 2009.

Everything was discharged including the house that we're still in.

We're paying the mortgage... but had no reaffirm agreement to do so. We haven't been ready to move.

BofA hasn't been reporting payments to bureaus

If I were to let the house go (stay in it and save monthly payments til they boot us) will this effect my chances of getting a new mortgage even though the current mortgage has been discharged.

Basically... I've started to rebuild credit and have a FICO of 615. Will foreclosure on my discharged mortgage effect my credit rating?

[DCC77]

From what I have heard/read- yes it will hurt your chances of getting another mortgage. But- not forever. The general timeline is banks will be more willing to lend to you 3 years after the Foreclosure actually happens (for FHA Mortgages). Conventional is approx. 5 years after. I believe the date of the transfer of deed into the banks name is when the clock starts ticking. Basically, there is still a lien on your home and the bank holds that lien. Even though you don't personally have any responsibility to pay the mortgage, banks won't ignore that and give you another mortgage on top of the one you have just because you don't have to pay on that one. It's a risk they are not willing to take!

Also, it CAN take up to 2 years (even longer) for the bank to finally go ahead and foreclose. I don't know your situation, but if you like where you live and you are not having issues paying the mortgage, then you may just want to stay put. Or are you just looking to not have to pay the mortgage and sock away some money? You would probably have to rent a while after you leave the home- unless you can purchase a home with cash and don't require a mortgage.

Hope this helps! (If I'm incorrect on anything someone please let me know!)

[bankruptsee]

thanks for the info

I have another question

Only my name is on the mortgage that was discharged. Both me and my wife filed bankruptcy jointly

do you think it would be possible for her to put a new mortgage in just her name without any FHA restrictions? she has never had a mortgage

[newbie2]

She can, once she is 2 years (I think) post discharge. But remember, she can be the only one applying for the loan and your income can't be considered in the equation.