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Mortgage discharged in 2007 BK; kept loan current; options to remove me from title

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    Mortgage discharged in 2007 BK; kept loan current; options to remove me from title

    I was discharged for Chapter 7 BK over 7 years ago. While the BK still shows on my credit report as a public record, the two loans I had on my house no longer report (been 7 years past discharge). Neither loan was reaffirmed and both were discharged. The loans have never been in default and I have a tenant in the property.

    I am in the process of buying a new home and there is a program that I would qualify for to pay for downpayment on new home, but I cannot do so while being titled to another property. I am on of many that didn't understand the difference between bankruptcy and ownership. I assume Wells Fargo has no interest in Foreclosing considering the loan has always been current.

    1. What is the best way to have my name removed from the deed without it interfering with the loan approval process for a new loan? With my credit score >760 and with the time that has elapsed, I am not having any issue prequalifying for a new FHA or Conventional loan on a new property, but I am not sure if it is in my best interest to try and get my name off the title? At some point I will have to do this as my mortgage is variable, though right now it is at 2.75% so it isn't an issue.
    2. If in the future if it is foreclosed or a short sale, would there be any implications on my credit? I didn't believe I could be double dinged for the same property, BK and Foreclosure/Short Sale.

    I just don't want to mess up my current buying process on a new property or mess up my credit. When reading these different posts, I have become more confused, but I realized everyone's situation is different.

    #2
    Hi, we had our out of state rental property FC on 2.5 yrs after discharge and did a short sale on our primary here, both were included in bankruptcy and neither showed as anything other than IIB on our credit report.

    As far as getting your name out of title, you pretty much summed up the process, stop paying and go to FC or sell (short sale I assume since you mention it but bank has to approve and they can be very tough and process drawn out). Both of these processes can take a very long time but eventually your name will come off. You could approach the bank about a DIL to remove your name but do not count on it, banks not usually cooperating on that. Good Luck!

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