We filed for Chapter 7 and it was discharged in September 2009. Our morgage was included, but we are still in the house. We have been trying to get the morgage company to work with us from the begining. It has almost been a year and a half since our last payment. Now, if they get around to saying they won't help us is that when the forclosure hits our credit report? Even when a morgage is included in the bankruptcy does it show up as to different hits on our credit a bankruptcy and forclosure?
State/Country relating to question: California
We have turned in a modification application and called, but they still haven't discussed any options with us. They just keep saying it's being processed. It's worth waiting it out and hoping they work with us right? Or is it hurting us rebuilding our credit?
The lender will need to file the foreclosure, and that can take from 3-12 months in some cases to be official. The bankruptcy discharged the debt and the foreclosure is the means to transfer title back to the lender. IF you only have 1 mortgage, you may want to see if they can offer a deed in lieu of foreclosure, where you just transfer the property back and avoid the foreclosure. There is nothing to impact your credit as to the mortgage after the bankruptcy, it is discharged.
So, how will it be on our credit report? Will it just show bankruptcy? For future loans will lenders know that the we didn't forclose after bankruptcy, that it was done at the same time?
The bankruptcy will show for 10 years that you filed the case.Any lawsuits, such as foreclosures will show for usually 7 years in the public records portion of the credit report.Under the loan item though, it will usually show as $0. or as discharged in bankruptcy.You can get free credit reports at www.annualcreditreport.comThanks and good luck
Better Business Bur 15yrs bankruptcy experience. Chicago Bar
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