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Was my mortgage considered "included in my bankruptcy" if listed as a zero balance (Deficiency Waived) ?
Anonymous2 views3 answers
Retained atty & started Ch7 BK (sick, had to leave work)-started process & things were delayed due to my illness, surgery and pending permanent disability--house was surrendered/foreclosed on prior to filing&discharge.
Lender waived deficiency and lists as Included in Bankruptcy on credit report--(no foreclosure reported on report)-- In conventional application for mortgage now & bank after reviewing my CH7 petition/papers says the BK lists as foreclosed and not included in BK--because lender is listed with a zero balance/notice only on petition. Is the credit report by the lender as "included" not enough?
Robert W GambrellChapter 13 Bankruptcy AttorneyOxford, MS ·
Provided a creditor is listed in your schedules, the fact that the amount of the debt is not shown in the schedules has no effect. For example, if you list a hospital and only show one debt owed to the hospital with a balance of $27.00 and fail to list the other 4 debts owed to the same hospital and the total amount owed of thousands of dollars, all of the debt owed to the hospital is discharged. In fact, in most jurisdictions, the debt is discharged even if it was not listed at all.
Perhaps if you contact your attorney that handled the bankruptcy and request that he/she write the banker and give the banker the explanation establishing that the debt was discharged.
The problem in getting approved for a new house mortgage may be that because the schedules show the mortgage as having been foreclosed, that could preclude being approved for a home mortgage. For example, FHA loans specifically preclude the approval of an FHA home mortgage within three years of the date of the foreclosure.
Your bankruptcy discharge eliminated your liability on your mortgage if you did not reaffirm your mortgage loan during your Chapter 7 bankruptcy proceedings. Are you asking a legal question related to your bankruptcy filing? Or are you asking attorneys to decode the jargon contained in your report? If you listed your mortgage loan on your Chapter 7 petition and schedules, it was for all purposes "included" in your bankruptcy. You don't need a banker to review your credit report, and tell you what you have already done; simply ask your lawyer. There was no alternate reality here. Your mortgage was listed and discharged in your Chapter 7 case. End of story.
Howard Clifford HoytDUI / DWI AttorneyLees Summit, MO ·
Your discharge eliminated your debts as a part of the Chapter 7 case. Notations on the credit report are often confusing. The balance listed on the loan is irrelevant in my opinion. You were given a fresh start by federal law by eliminating your responsibility for the old house loan. You can talk to your lawyer as well.
