Am I unfairly being Penalized twice??

[InOverHead]

Hi everybody!

I filed Ch. 7 discharged 12/11

Had been paying on home although debt was not reaffirmed. My understanding was no further reporting could occur on the home/loan due to BK discharge. Later on I realized I t was a no win loan to continue paying on (incredibly when I asked for mod pre-bk they turned it into a 40 i/o with completion @ 60years with a yearly interest rate reset) So I stopped making payments and payed an attorney instead (same BK atty) to keep them off my back and try to negotiate, as of course they wouldn't negotiate with me.

Fast forward nearly two years. I'm in Florida where they've been moving cases along. At atty's advice accepted 90 day cash for keys deal in December - so I have about 3 weeks left in home. My mom also stays with me and has health issues. I've been trying to get attorney to confirm impact on credit report and length before I'm available to get a new home. He finally did and that's the news that got me back on here trying to get more opinions/options. He says most likely will NOW have a foreclosure on my report!! This destroys me as I have been working so hard to rebuild my credit, now feel back at square one AND will have problems getting another home for sometime.

Is it wrong for me to think 2x penalized, or are these different animals truly? I had lumped it together as having been dealt with via the BK filing.
If it is 2 separate things, is there any way I can get the foreclosure to coincide the the BK filing dates so that I'm already 3 years past this dreadful stuff - LIKE I thought?

[mynameainttracy]

I went through a FC after filing 13. As long as the debt was IIB and if you foreclose it will not hit you again. There will not be an additional public record. There may be comments in the accounts saying foreclosure but that's the worst that should happen. I disputed the comments and even got them removed.

[justbroke]

I also had a foreclosure after a converted Chapter 13 that discharged as a Chapter 7. The property took almost another year after the Chapter 7 discharge to foreclose. There is absolutely not one record of the foreclosure. Of course, this would not prevent the lender from making a mistake and reporting the tradeline (on credit report) as foreclosed, but you should be able to dispute and have it set back to "IIB" (included in bankruptcy).

I would say to just say, first, to just stop worrying about your credit. Worry about your health and your family's health. Then worry about housing (renting/leasing). After some time, then worry about your credit report and if you want to purchase another home. I know it's not what you want to hear, but maybe you need to hear that?

For the record, again, I live in Florida and had a foreclosure after the bankruptcy. The account was Included in Bankruptcy back in 2010. It has been off my credit report for at least 2 years and I don't know why. I have "public records" other than my bankruptcy filing. The other (investment home) is showing as Included Bankruptcy (IIB) on my credit report with $0 balance and no payment history. That represents what the majority of people see on their credit report.

[Drazil65]

We filed 12/11, discharged 3/12, included 2 homes in chp 7, did not reaffirm either one. Stayed and paid and put primary home on market, bank accepted short sale and closed on it 10/12. Second home (rental in another state) was finally FC on in 01/14 (stopped making payments 2.5 yrs prior to FC), neither the short sale or the FC shows on credit report, one we paid on for a little while then stopped until it sold and other we stopped period. Both show as IIB, this March it will be 3 yrs since discharge.

We have been told that if we wanted to purchase another house at some point (we do not), it would be at least 2 yrs after the latest FC before we could apply. So if that were the case we would have another year to go if that is so (I have heard this timeframe before).

Good Luck!

[LadyInTheRed]

We have been told that if we wanted to purchase another house at some point (we do not), it would be at least 2 yrs after the latest FC before we could apply. So if that were the case we would have another year to go if that is so (I have heard this timeframe before).

I have of the same timeframe. The foreclosure may not appear on your credit report, but it is a public record that a prospective lender will find out about.

[InOverHead]

Awesome - I just love how a group of intelligent, good hearted people can have better/more accurate info than an atty whom I've paid large sums of $$$ for this type advice!! Although I do realize/have heard it is the essential function of an atty to provide worst case scenario. A) based off his knowledge didn't really do that as if that's what he felt to be true then should have addressed during BK so as not to have foreclosure looming. B) above all knows me to be a worry - wort so shouldn't have mentioned unless absolutely certain. Thanks everyone for the relief!

And JB - Yes. Thank You! Stress is the real killer IMO and all this keepin' up with the jonses' and worries over the almighty $ and credit reports & stuff...blah. It's too much and just crippling at times.

Summary: So the FC should be iib and I shouldn't fear the 3 to 5 year timespan of obtaining another home loan. If anything, dispute.

Thanks again to all who respond or view this page and find it helpful.

[InOverHead]

We filed 12/11, discharged 3/12, included 2 homes in chp 7, did not reaffirm either one. Stayed and paid and put primary home on market, bank accepted short sale and closed on it 10/12. Second home (rental in another state) was finally FC on in 01/14 (stopped making payments 2.5 yrs prior to FC), neither the short sale or the FC shows on credit report, one we paid on for a little while then stopped until it sold and other we stopped period. Both show as IIB, this March it will be 3 yrs since discharge.

We have been told that if we wanted to purchase another house at some point (we do not), it would be at least 2 yrs after the latest FC before we could apply. So if that were the case we would have another year to go if that is so (I have heard this timeframe before).

Good Luck!

I have of the same timeframe. The foreclosure may not appear on your credit report, but it is a public record that a prospective lender will find out about.

Oh...well, can't really expect to get off scot-free; just the idea of having a BK AND a FC when the house was part of the BK seemed wrong. Although I'm forced to move out in a few weeks not exactly in a position to get another loan right now anyway. But appreciate ALL the info nonetheless.

[Drazil65]

"Stress is the real killer IMO and all this keepin' up with the jonses' and worries over the almighty $ and credit reports & stuff...blah. It's too much and just crippling at times."

This is EXACTLY why we will not purchase another house or use credit cards, the relief from stress and having cash is beyond anything we have ever felt before, we are hooked. This is what life is about, not robbing peter to pay "the bank" or worried about the credit score, its bliss to be so free. We work hard and save harder....it all pays off. Even our 12 yr old son saves 50% of his allowance in his emergency fund, its a teachable moment for all of us.

Take your time and relax a bit, you may love it!!!