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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I LIVE IN OHIO AND 2 YEARS AGO i RECEIVED A CHAPTER 7 BK DISCHARGE

Customer Question

I LIVE IN OHIO AND 2 YEARS AGO i RECEIVED A CHAPTER 7 BK DISCHARGE I DID INCLUDE MY FIRST AND 2ND MORTGAGE IN THE BK AND I DID NOT REAFFIRM, I HAVE BEEN LIVING IN THE HOUSE SINCE AND CONTINUE MAKING BOTH PAYMENTS ON TIME EVERY MONTH, HOWEVER I JUST RECEIVED A SIGNIFICANT PAY CUT AND I AM NOT SURE I WOULD STILL BE ABLE TO PAY THE MORTGAGES, I OWE MORE ON THE FIRST ONE THEN THE HOUSE IS EVEN WORTH. MY QUESTION IS IF I WERE TO MOVE AND THE BANK TOOK THE HOUSE, WILL THAT SHOW ON ME AS A FORECLOSURE AFTER A BK, SINCE I DID NOT REAFFIRM, I WAS TOLD I WAS NOT PERSONALLY RESPONSIBLE FOR THE MORTGAGES ANYMORE SINCE I DDINT REAFFIRM, BUT CAN THAT BE PUT ON MY CREDIT BUREAU AS A FORECLOSURE? THE WND MORTGAGE COMPANY SAID THEY WOULD SUE ME IF I WALKED AWAY FROM THE MORTGAGE AND RUIN MY CREDIT AGAIN, I HAVE WORKED HARD TO GET REASTABLISHED AND I DONT WANT A FORECLOSURE ON MY BUREAU, UNFORTUNATELY THE ATTORNEY THAT HANDLED MY BK HAS SINCE RETIRED SO I CANNOT ASK HIM
PLEASE ADVISE,
THANKS JEANNIE
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

The debt is discharged in your bankruptcy.

Terry L. :

But, when the lender moves to foreclose, that will show on your credit too, the factual event that occurs.

Terry L. :

Foreclosure is the process to transfer title.

Terry L. :

They will not be able to collect on the debt, just get title.

Terry L. :

You are not responsible for the debt. Unfortunately, unless you sell the home, a foreclosure will show.

Terry L. :

do you have any questions?

Customer :

tHANK YOU FOR YOUR RESPONSE, I WAS TOLD BY MY ATTORNEY WHEN I ORIGINALLY FILED THAT THEY COULD NOT AFFECT MY CREDIT SINCE I DID NOT REAFFIRM AS LONG AS I JUST TURNED THE HOUSE OVER BEFORE THEY HAD TO ACTUALLY FORECLOSE, APPARENTLY THAT WAS A ERROR AM I CORRECT? I DONT UNDERSTAND HOW THEY CAN REPORT TO MY BUREAU IF I AM NOT PERSONALLY RESPONSIBLE IF I WILLING GIVE THEM THE HOUSE BACK AND SIGN OFF

Terry L. :

yes, the debt is discharged, so non-payment will not be reflected. The foreclosure suit is a public record, which can be reported.

Terry L. :

if you have more than one loan, you cannot do a deed in lieu of foreclosure unfortunately

Customer :

OK, thanks you for your help, I have jsut worked hard to get my credit reastablished and now it will be ruined again if I have to let the house go

Terry L. :

It won't the bankruptcy trumps the negative impact of the forelcouure

Terry L. :

foreclosure

Customer :

even though the foreclosure would be 2 or so years after the BK?

Customer :

or would it state foreclosure included in BK?

Terry L. :

no, public records just state the case #

Terry L. :

the debt was discharged.

Terry L. :

foreclosure removes the lien, and transfers title

Customer :

ok so that was my concern that it would show as a foreclosure after a bankruptcy which being in the credit business I know that looks bad to potential lenders

Terry L. :

it may

Customer :

ok well I think I have my answers just a little confused still sorry, beacuse you just said it would just show the case number

Terry L. :

It will be listed as Creditor - Case Number - Case Type - Foreclosure

Customer :

My attorney told me they could only show it as a foreclosure on my bureau if I reaffirmed and then defaulted, Ok thanks

Customer :

No wonder he is out of business ha ha thanks for your help

Terry L. :

Best of luck, thanks for your question

Terry L. :

please click accept so that I may get credit for my answer.

Terry L. :

Thankyou

Terry L. :

please click accept so that I can get credit for answering. Thank you and good luck!