When does foreclosure hit credit report?

[rkg2004]

Hi, happy and hopeful New Year to everyone!

I'm sure this must have been addressed on the forum in the past but I can't find it through search. Does anyone know exactly when a foreclosure shows up as a public record on your credit report. I have seen conflicting information. Some say it's as soon as notice of default is filed, and then others say it's toward the end just before its sent to the sherriff. Anybody know for sure?

[justbroke]

If your mortgage debt was discharged in a bankruptcy, you will probably not have any public record of the notice on your credit report. I certainly did not have a public record for any of the properties that were discharged through bankruptcy and subsequently foreclosed upon. My tradelines, on my credit report, for the 2 mortgages are also just listed as "Included In Bankruptcy" with a balance of $0.

If a public record, other than the bankruptcy itself, does appear after the debt is foreclosure, you could dispute it and see if it is removed. I have read similar posts from other experts that say that it "could" be reported, but I have never read anything from a debtor that claims that it has been reported (in the public records section of the credit report).

[BobMango]

I had a rental property foreclosed and sold at auction just before I filed and the foreclosure never showed up on my credit report. The loan being in default did, but nothing about the foreclosure. When I subsequently purchased another home I had to prove the property was no longer in my name but nothing ever hit my credit reports.

[rkg2004]

Thanks for the info. As always, really appreciate the useful feedback I get on this site.

[bluemartini]

Thank you for this info. In 2010 I had my foreclosure in the spring, and filed BK in December.

We listed the foreclosure debt among my creditors even though the judgment had already happened.

Fast forward four years, this morning I pulled my credit report for the first time in quite a while and was surprised that the foreclosure appears nowhere on my credit report. I guess it's because it was rolled into the BK.

However my understanding is that the lein survives, and in my county I can never take out a mortgage in my own name because if I did, I would be responsible for the foreclosure judgment amount. Not a biggie since I have since gotten married and my DH owns his home outright.

I was a little frustrated though to see that my credit score has only gone up about 10 points in the past three years, from 627 to 637. I don't get it because I have several small credit cards, am never late on them and keep balances at low or zero.

Whatever!

[LadyInTheRed]

However my understanding is that the lein survives, and in my county I can never take out a mortgage in my own name because if I did, I would be responsible for the foreclosure judgment amount.

That makes no sense. Yes, when a secured debt is discharged, the lien remains. But, if there was a foreclosure before your BK, then the lien was already gone (or possibly assumed by the buyer) and all that remained was a deficiency judgement. Your liability for the deficiency was discharged in BK if you did not reaffirm it. That discharge is forever. Taking another mortgage would not change that.

[bluemartini]

That makes no sense. Yes, when a secured debt is discharged, the lien remains. But, if there was a foreclosure before your BK, then the lien was already gone (or possibly assumed by the buyer) and all that remained was a deficiency judgement. Your liability for the deficiency was discharged in BK if you did not reaffirm it. That discharge is forever. Taking another mortgage would not change that.

Thank you for answering. And whoops, I just realized that I made a mis-statement in my OP and you are right, it makes no sense.

I wrote:
"However my understanding is that the lein survives, and in my county I can never take out a mortgage in my own name because if I did, I would be responsible for the foreclosure judgment amount."

And what I meant was that it is my understanding I would be responsible for the lien.

But yes, I have been operating on the assumption that I am stuck with that lien, which is what my then-attorney explained to me. In fact I had posted a thread about all of this at the time it happened. http://www.bkforum.com/showthread.ph...post-Chapter-7



Hmmm.... this is interesting. I'm very curious about this now in light of your comment. My lawyer had a number of people working for him and towards the end of my case there was a young guy representing me who said we needed to vacate the lien as part of the bankruptcy. During the BK the judge tabled the motion to vacate lien and scheduled an evidentiary hearing to discuss the lien issue. My "substitute lawyer," if you will, seemed inexperienced and not very confident. I remember the judge raked him over the coals and denied the motion. Afterwards the substitute lawyer researched the issue, called me back and confirmed that indeed, the lien could not be vacated as part of the bankruptcy, and that the only way it would ever affect me is if I tried to finance a house again in my particular county at which time I would have to pay off the lien.

He didn't explain anything beyond that, and I guess I assumed the lien would be hanging out there forever, unless I paid it off. It didn't occur to me that the next buyer would assume the lien. But I'm googling right now and I'm finding some stories that echo what you're saying.

You are correct, I did not reaffirm my mortgage so the deficiency judgment was discharged.

I just checked online property records in my county, and when the house went to foreclosure the bank got it for $0 (that's what it says online!!!), then sold it for $120k to a couple, who sold it a year later to someone else for $210k. I remember the judgment against me was $210k. I have no idea what the amount of the lien was. I guess I could call my county property tax department today and ask them to research if there is a lien on record anywhere with my name attached to it. But it sounds like there isn't.

I guess I'm in a bit of shock. All this time I thought I had a lien that would follow me around indefinitely in my county?! And I even explained that to my husband when we got married a couple of years ago--- I wanted to be sure he knew that I would never be able to finance property with him in this county, should we ever consider that in the future. It sounds like I got some bad legal advice!


I'm really annoyed that I have been walking around for four years with incorrect information.

Thank you so much for responding and bringing this to my attention.

[LadyInTheRed]

The lien stays with the property, not with the individual. If the property has been sold twice since foreclosure, it would be very rare for the lien to remain. Even if it did, it wouldn't be your problem. The foreclosure in your past may make getting a mortgage more difficult. But, that is not because the lien remains.

[bluemartini]

That is music to my ears. Thank you again so much for your help and your input!! I truly appreciate it! It's nice to finally have the correct info!

[WhatHappened]

My CH7 discharge was complete in 08/2011 (included the house in my BK). The house was sold at auction in 02/2013. To date, no foreclosure showed up on my credit report.

I have no idea what this means, good or bad, just thought I'd point it out.