Should I wait to rebuild, due to possible FC

[Jf24]

Got discharged and closed ch7 earlier this month. Want to start rebuilding with a secured card. Mortgage mod was denied and may be facing foreclosure. Would tryinging to rebuild now be wasting time with a possible foreclosure, which may take years anyway. Or does it not matter.

[ValleYum]

Did you reaffirm your mortgage during your Chapter 7?

If you did not - a foreclosure should not affect your credit since you would have discharged the financial responsibility for the house in your Chapter 7 (again, if you did not reaffirm the debt). So, you could try for your card if rebuilding with a credit card is what you personally have decided to do. FYI, Barclays has some good offers out there (non-secured).

[Jf24]

Did not reafirm. I will consider Barclays but figure a secured card would be easier to get. Looking into Cap 1

[MC9199]

I don't see how this could be correct. Despite not reaffirming, isn't a foreclosure on one's public record, and thus a factor in one's credit score???

Did you reaffirm your mortgage during your Chapter 7?

If you did not - a foreclosure should not affect your credit since you would have discharged the financial responsibility for the house in your Chapter 7 (again, if you did not reaffirm the debt). So, you could try for your card if rebuilding with a credit card is what you personally have decided to do. FYI, Barclays has some good offers out there (non-secured).

[ValleYum]

I don't see how this could be correct. Despite not reaffirming, isn't a foreclosure on one's public record, and thus a factor in one's credit score???

Most people on here who filed their BK first and were foreclosed upon afterwards have found no mention of the foreclosure on the public records portion of their credit report - thus it has not affected their credit scores.

The actual pulling of public records only (say for an employment search) may show the foreclosure as they are searching through court records only and not relying on the credit report itself to show those records.

My response to Jf24 was from what I have learned via my reading here and on other forums - anyone's mileage may vary.

[LadyInTheRed]

Jf24, even if the foreclosure does show up on your credit report, you can't start getting positive credit history too soon. One of the positive factors on your credit score is having long standing accounts. Getting a secured card, keeping the utilization low and making timely payments can only help.

[df04527]

i have never seen a foreclosure in public records of the credit report. The individual trade line could add a comment about the foreclosure but because it should already be reported as included in bankruptcy adding a foreclosure comment doesn't really make much difference. once it's negative from the BK it remains negative.

[AngelinaCatHub]

For the OP, if the house is desired, just pay through as advised many times here. It is our desire to use few or no credit lines. (I have an O.D. line). Yet in the few years of our discharge, our credit rating has rapidly gone up, with no attempt to make it so.

I believe time will fix most credit. I like the idea of secured cards as this is not a "loan" but your own money. Remember folks, what got you here. Just my thoughts. 'Hub

[forest007]

Angelina, What's an O.D. line?

[LadyInTheRed]

Angelina, What's an O.D. line?

Over Draft Line of Credit.

[TBA]

Good new replaces old bad. If you are disciplined, it never hurts to get started right away. A tank of gas, pay it off. A bag of socks, pay it off. You dont have to carry a balance.

I knew my hubby had issues so we took a secured card with $250 limit. He gets gas with it and pays it off. We are already seeing good results.

GL