Foreclosure after Chap. 7 BK

What is the name of your state? Illinois

I filed Chap. 7 BK in 1999 and surrendered by home. The case was discharged and then the lender did a foreclosure over a year later. Now, 4 years later, the lender has put Chap 7 Bankruptcy and foreclosure on my credit report. Can they do this or are they only allowed to report a Chap. 7 BK?

[HomeGuru]

Originally posted by tomvlasic
What is the name of your state? Illinois

I filed Chap. 7 BK in 1999 and surrendered by home. The case was discharged and then the lender did a foreclosure over a year later. Now, 4 years later, the lender has put Chap 7 Bankruptcy and foreclosure on my credit report. Can they do this or are they only allowed to report a Chap. 7 BK?

**A: if the foreclosure action was filed while you were still the legal owner (even when you were in BK), then the information reported to the CRA would be correct. You may have surrendered your home but possible title remained in your name for a year after. When you surrendered your home did you deed it back to the lender or deed it to anyone? If not, title would remain in your name until deeded by the BK Trustee. If the BK Trustee abandoned the property, then the lender took their time in filing the foreclosure to get the property back.
Please explain what actually happened in your case.

My home burned down in a fire Christmas 1998 (not my fault). My insurance company found faults with the original appraisal and the actual electric wiring in the home. Unfortunately, they allowed nearly $30,000 less needed to rebuild the home and I was unable to sue the original owner as he passed away.

When I filed for Chap. 7, stay was granted, and in Aug. 99 stay was lifted so the property could be given back to the lender and Discharge was granted 9/1/99.

When the Lender did the foreclosure proceedings, over a year later, I never received notification. They sent the notification to my old home address (burned down home) and an old p.o. box, even though they new my current address from my BK filing. My credit score, post BK, is 646, which I don't is to bad considering I have a Chap. 7 and forclosure on my credit report and I recently purchased a condo this year at an 8.5% interest rate with no money down and no pmi.

I guess I don't understand why they can report both. I thought the Bankruptcy court discharges the debt and anything after the discharge is not reportable? I'm so confused...

[HomeGuru]

Originally posted by tomvlasic
My home burned down in a fire Christmas 1998 (not my fault). My insurance company found faults with the original appraisal and the actual electric wiring in the home. Unfortunately, they allowed nearly $30,000 less needed to rebuild the home and I was unable to sue the original owner as he passed away.

When I filed for Chap. 7, stay was granted, and in Aug. 99 stay was lifted so the property could be given back to the lender and Discharge was granted 9/1/99.

When the Lender did the foreclosure proceedings, over a year later, I never received notification. They sent the notification to my old home address (burned down home) and an old p.o. box, even though they new my current address from my BK filing. My credit score, post BK, is 646, which I don't is to bad considering I have a Chap. 7 and forclosure on my credit report and I recently purchased a condo this year at an 8.5% interest rate with no money down and no pmi.

I guess I don't understand why they can report both. I thought the Bankruptcy court discharges the debt and anything after the discharge is not reportable? I'm so confused...

**A: thanks for the info but that was of no help. I need to know about the property title transfer and the dates of that transfer with respect to the filing of the foreclosure action and the BK discharge date.

I'm not sure what to say...The lender filed in open court requesting foreclosure 6/12/00 and 6/19/00 the foreclosure was granted by the court. This information I only recently found out about. I do know that the lender requested a relief from the Stay of the BK court in 7/99 and it was granted in 8/99. My BK was discharged in Sept. 1, 1999.

Does this help?

[HomeGuru]

Originally posted by tomvlasic
I'm not sure what to say...The lender filed in open court requesting foreclosure 6/12/00 and 6/19/00 the foreclosure was granted by the court. This information I only recently found out about. I do know that the lender requested a relief from the Stay of the BK court in 7/99 and it was granted in 8/99. My BK was discharged in Sept. 1, 1999.

Does this help?

**A: no. But it appears that the BK Trustee abandoned the property meaning the property was not part of the BK estate and the lender was free to foreclose. Since relief of stay was granted, the lender just continued with their foreclosure action. And being that the court did grant the foreclosure, you were still the legal title holder. Therefore the CRA's had every right to report the foreclosure action (as well as the BK) on your credit reports.