So confused!

[leedonovan]

If anyone can help me out with this question, I would greatly appreciate it. Our BK was discharged in July and we did not reaffirm our house. Which means we are no longer personally liable for the mortgage debt. Right now we are doing the "stay and pay" or "ride thru" or whatever you call it. We can stay in this house as long as we stay current in payments. We don't know now if it is in our best interest to stay here.

My question is, if we walk away from this home, when it forecloses...will the foreclosure show on our credit report? Right now on our credit report it shows the mortgage as being discharged and closed. The mortgage company will no longer be reporting payment history.

I have read conflicting answers to this question, can't seem to get a straight answer. I do not see how a foreclosure can be reported on our credit report for a debt we are no longer responsible for.

Thanks in advance!

[Tbornetun]

It shouldn't show as a foreclosure since the debt has been discharged. If for some reason it does, you will contact the credit bureau and provide them with your discharge and they should change it to reflect that it was included in bankruptcy.

[leedonovan]

This was exactly the answer I was hoping for! But you would be suprised how much info is out there that says otherwise. Do you know of anyway I can find out for sure? My lawyer said it was up to the lender if they wanted to report or not. When I asked the lender/mortgage company, they said they could not answer that question and to contact our lawyer. Erggggg, so frustrating!

[Tbornetun]

I don't think the credit bureau will allow them to report a foreclosure on a debt that they previously listed as included in bankruptcy and closed. Either way, like I said, you can fix it after the fact by providing the bankruptcy information to the credit bureau.

[leedonovan]

That's what makes sense to me! Thank you!