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  1. #1
    kalamansie is offline Junior Member
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    Foreclosure Question

    What is the name of your state (only U.S. law)? Pennsylvania

    In 2006 I declared personal bankruptcy. Handled it myself. Was kinda stunned when the judge refused my request to reassume my mortgage - even though I had made those arrangements with the bank. So, I've been living in the house and making the payments ever since - without it being reported to the credit bureaus.

    My question is - If I were to walk away from this house now - would my credit suffer with a foreclosure stuck in there for another 10 years - or since this debt was discharged in the 2006 bankruptcy - would it NOT show up in my credit report as a foreclosure?

    The answer to this question is vital as to whether i stay in this house or walk away to buy a new home.

    Please advise and thanks in advance.
    Last edited by kalamansie; 03-07-2012 at 01:35 PM. Reason: typo
  2. #2
    HomeGuru is offline Senior Member
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    Quote Originally Posted by kalamansie View Post
    What is the name of your state (only U.S. law)? Pennsylvania

    In 2006 I declared personal bankruptcy. Handled it myself. Was kinda stunned when the judge refused my request to reassume my mortgage - even though I had made those arrangements with the bank. So, I've been living in the house and making the payments ever since - without it being reported to the credit bureaus.

    My question is - If I were to walk away from this house now - would my credit suffer with a foreclosure stuck in there for another 10 years - or since this debt was discharged in the 2006 bankruptcy - would it NOT show up in my credit report as a foreclosure?

    The answer to this question is vital as to whether i stay in this house or walk away to buy a new home.

    Please advise and thanks in advance.
    **A: confusing post. Mortgages are not automatically discharged in BK. Get a current title and credit report.
  3. #3
    kalamansie is offline Junior Member
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    Not helpful at all.
  4. #4
    HomeGuru is offline Senior Member
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    Quote Originally Posted by kalamansie View Post
    Not helpful at all.
    **A: you have not provided enough information. There should already be a foreclosure and BK status on your credit report.
  5. #5
    kalamansie is offline Junior Member
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    OK sorry - here is what I know:

    My credit report shows the bankruptcy, but there is no mention of the mortgage anywhere on the report.

    The mortgage was discharged in the 2006 bankruptcy since the judge refused to allow me to re assume it.

    My monthy statement from the lender says:

    Something to the effect that - "this is not an attempt to collect a debt" but since we have an interest in the property please remit the following amount to keep the loan current..... Next time bill comes I will type in exactly what it says.

    At times, I have fallen 2 months behind on the mortgage payment and that info NEVER shows up in my credit report....

    Hope this helps clarify question.
  6. #6
    nextwife is offline Senior Member
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    The note is the promise to repay. THAT is what was discharged in the bankrupcy. You are not personally liable for repayment.

    The mortgage is the lien that secures the collateral. That outlives the bankruptcy, and is what the lender would act upon to take back the collateral for non payment, they cannot go after you for any deficiency.
  7. #7
    kalamansie is offline Junior Member
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    Thank you. Forgive my stupidity, but does that mean the bank cannot enter foreclosure informatoin about me in the 3 credit bureaus if I decide to walk away from this house?
  8. #8
    Zigner is offline Senior Member
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    Your monthly statement says that they are not asking you to pay a debt that you are responsible for. They simply want you to donate to the cause.

    I suggest you consult with a bankruptcy attorney in your area because you are confused (and confusing)
  9. #9
    kalamansie is offline Junior Member
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    Lightbulb

    I don't mean to confuse anyone. It is a simple question. There is no mention of this mortgage in my credit report from the 3 credit bureaus. I realize that I am donating to the cause - but they are allowing me to live here for that donation. The question is - suppose I quit making the payments on this mortgage and the lien holder forecloses on the property - will that foreclosure appear on my credit report? oR, SINCE THE DEBT WAS DISCHARGED IN 2006 BANKRUPTCY, are they precluded from entering that foreclosure information into my credit report? Anyone?
  10. #10
    Zigner is offline Senior Member
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    Quote Originally Posted by kalamansie View Post
    I don't mean to confuse anyone. It is a simple question. There is no mention of this mortgage in my credit report from the 3 credit bureaus. I realize that I am donating to the cause - but they are allowing me to live here for that donation. The question is - suppose I quit making the payments on this mortgage and the lien holder forecloses on the property - will that foreclosure appear on my credit report? oR, SINCE THE DEBT WAS DISCHARGED IN 2006 BANKRUPTCY, are they precluded from entering that foreclosure information into my credit report? Anyone?
    There is no way we can know that for sure without having access to all of your documents. A local BK attorney can give you a good idea of what may, or may not, happen.
  11. #11
    HomeGuru is offline Senior Member
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    Quote Originally Posted by kalamansie View Post
    Thank you. Forgive my stupidity, but does that mean the bank cannot enter foreclosure informatoin about me in the 3 credit bureaus if I decide to walk away from this house?
    **A: READ my first post.
  12. #12
    kalamansie is offline Junior Member
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    Read my reply.
  13. #13
    HomeGuru is offline Senior Member
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    Quote Originally Posted by kalamansie View Post
    Read my reply.
    **A: I did earlier and don't believe you.
  14. #14
    Anna Alb is offline Junior Member
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    Technically, the answer would be, "no" because the debt was discharged and you did not "reaffirm" it in the bankruptcy. However, even though that is the case, it is possible that the lender may go ahead and report the foreclosure to the credit bureaus. You would then need to dispute it as it was discharged and included in the bk. At the very minimum, the credit bureaus would need to list as, "included bankruptcy." If you end up in this situation, you might need to consult with a "collections" attorney to ensure that the loan either does not get reported at all on your bureau or that it simply is "included in bankruptcy." I hope this helps.
  15. #15
    kalamansie is offline Junior Member
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    Thanks a million. Finally a straight answer!

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