Question : How will a foreclosure affect my credit after discharge of chapter 7?
My mortgage was included on a chapter 7 bankruptcy 2.5 years ago. I continued making payments until recently and now have decided to walk away from my home. Will a judgment of foreclosure be added to my credit report even though the debt was discharged?
- asked by Chgo1978
All Answers:
Answer #1
Very good question. While I would give a call toyour foreclosure attorney I think you are in thefollowing situation: having your mortgage includedin the chapter 7 means that the bank can't comeafter you for the loan and they haven't had tobecause you have been paying thus you don't have aforeclosure on your credit record. Now you will,though it is a mute point, because you are inchapter 7. A suggestion if this concerns you, finda realtor and say you want to do a short sale. Yourisk and pay nothing. The realtor try to findsomebody who will buy the house, somebody willmake an offer which the bank either accepts orrejects. If they accept it you are off the hook onthe foreclosure. If they don't they will simplystate a price at which they will sell it and therealtor can list it again at that price. I owed125k on a place that was sold in a short sale for50k. You still take a hit on your credit, or atleast I will but much less because the placedidn't go into foreclosure, the bank accepted anoffer for it. Whatever reason you are giving fornon-payment you just have to back it up with bankand tax records.
- answered by Apollenaire
Answer #2
Unfortunately, though you continue makingpayments, it will probably still be visible onyour credit report.
- answered by Karie Iversen
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