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Credit Report AFTER Ch 7 Discharge - Foreclosure in Progress
Anonymous2 views5 answers
1. Got behind on credit cards and mortgage.
2. Lost Foreclosure case on house and sale date was set.
3. Filed Ch 7 before sale date and house was put on automatic stay.
4. Chapter 7 went smoothly and has been discharged - no assets.
5. Home was "surrendered" on paper but I am still living in it.
6. Bank filed automatic stay lift; it was granted AFTER Ch 7 was discharged.
7. My credit report accounts are all zeroed out on my credit report.
8. My score is in the 500s and will probably hit 600 as soon as my car loan reports current (was behind during BK, now I am current.
My question is this - I am ready to start the journey of improving my credit, but will future foreclosure actions affect my credit report now? My mortgage is off my credit report as a debt. My lawsuits are also off.
The foreclosure will be listed on your report and it will impact your credit. However, the benefits of discharging the debt you did have will outweigh it and within a year you should be in the mid 600s again. You can also dispute the negative reporting and try to get the foreclosure removed on the basis it was surrendered in bankruprcy, although this is very difficult. I have experienced two clients getting the foreclosure removed on that basis.
I agree.Also since you can't file another Chapter 7 for 8 years after the filing date of your last one and a Chapter 13 filing within 4 years will not result in a discharge of subsequently acquired debt,some credit card companies, in their calculating way ,will consider you a better credit risk since there is no way for you to discharge them in a subsequent case for some time..Be wary of accumulating these types of lenders as they have marginally disclosed membership "fees" and other costs.Good luck.
Michael Christopher BurrChapter 13 Bankruptcy AttorneyChicago, IL ·
Generally, the future foreclosure actions will continue to affect your credit. The goal certainly needs to be to get that event completed and behind you. Even though the surrender took place in the bankruptcy, you typically still need to try and give possession to the bank in the foreclosure process. You can try some summary or accelerated foreclosure proceedings, or a deed in lieu of foreclosure. You will have to move out too, so if it's worth it to you, see what you can do to accelerate the process.
You are on the right track to start your new life. However, credit reports reflect facts..and I believe if in fact a foreclosure occurs, despite an intent to surrender, the report should show foreclosure if that happens. I would live there free as long as possible. If your bankruptcy is "closed" not "discharged" but closed, then the trustee is done with your case which entitles you to transfer if desired. The bank may take a deed in lieu of foreclosure and pay you $3000 or whatever you agree to. But if there were lawsuit liens (you had lawsuits) then they may have to proceed with a formal foreclosure or if there are other liens. Get 2 credit cards and pay them off every month when you buy gas or food to increase your score too. If needed, a secured credit card. Good luck and I hope between all our answers we have helped you now.
The foreclosure will definitely affect your credit score adversely. You should immediately contact an experienced real estate professional or attorney to begin a short-sale. You might actually get money to move. The short sale should have less of an adverse effect on your credit score.
