Foreclosure vs Discharge

[seanf12]

If worst-case scneario happens for some reason your lender files for and receives a lift from stay in order to forclose (for whatever the reason) and they do end up forclosing, are you responsible for any deficiency balance, or is that wiped out when you are discharged?

Also, in this scenario does the foreclosure appear on your credit as just that, or is part of your BK and thus will show as being IIB or something similar)? I guess I am asking in terms of FHA guidelines, where they say you can qualify 2 years after a Ch 7 but 3 years after a foreclosure

Thanks

[lrprn]

If worst-case scneario happens for some reason your lender files for and receives a lift from stay in order to forclose (for whatever the reason) and they do end up forclosing, are you responsible for any deficiency balance, or is that wiped out when you are discharged?

If you do NOT reaffirm, then the deficiency balance is wiped out when the mortgage company forecloses whether it's before or after discharge and closing.

Hopefully someone else will have an answer for your second question.