Mortgage after Discharge

[newimges]

My bankruptcy was discharged in January of this year.

I have a mortgage through Countrywide that wasn't reaffirmed. All payments were made on time until this month. I was going to continue to live here and pay the mortgage payments but now believe it will be better to look for another place with a lower monthly payment.

My question is since the bankruptcy was discharged with no late payments on the mortgage - will the late payment this month be reported to the credit bureaus? What are my options? Can I move my family out of the house without any obligations to Countrywide? I originally intended to reaffirm the mortgage but they refused to do so. It is my understanding that the mortgage was discharged with the bankrupty and I could continue to live here as long as I made the payments but could walk away at any time.

Thanks in advance for your help.

[CindyLou]

Depending on the laws in your state you could continue to live in your house free for 6mo to a year.....The foreclosure process is not fast!!

[newimges]

Yes, I am aware of that. I have a friend who didn't make a house payment for 2 years and just now has to move out.

My main concern is what the late payments will do to my credit now that I am trying to repair it and if it comes to a foreclosure will that show up on my credit as well since the mortgage was discharged with the bankruptcy and no reaffirmation agreement was made.

[FreshLikeADaisy]

Newimges, before you start guessing as to how this will affect your credit, pull your credit report now. Because it wasn't reaffirmed, the trade line should still show "IIB" -- I'd be surprised if they were still reporting at all, current payments or not.

Also, because you did discharge the loan in bk, if you stop paying and walk out, any adverse credit reporting can be successfully disputed with your creditor matrix (showing Countrywide) and your discharge, because again, technically the mortgage was discharged in bk. They didn't want to reaffirm, too bad -- it's on them now.

While walking out is not a practice I would generally recommend quite frankly, with what you've written, I don't see how it's NOT in your best interests, or how it's wrong for them to be stuck with it since they refused to reaffirm. In other words, in my own opinion, you've already done everything you could do to keep the house and be aboveboard in your dealings with them; doesn't sound like there's a whole lot left you *can* do. Don't worry about the credit report because even if they report negatively, you can easily dispute it. Good luck!!!

[tallberry]

I hate to say it but Countrywide gets what they deserve...we tried and tried with more than a few buyers for our house to do a short sale or we even said we would agree to signing a note to pay the difference on the house after it sold. Nope, wouldn't even consider it because we paid on time and had excellent credit. They said to call them back when we get 3 or 4 months behind and then they would see what they could do. So don't walk out, stay as long as you can for free and then give them the house on a silver platter. (I swear I'm not bitter..okay maybe a little).

[newimges]

Thanks for your responses.

My main concern now after the bankruptcy is repairing our credit which is why I was concerned about the late payment showing up on the credit reports.

I agree with you tallberry - Countrywide is not a very "nice" company to deal with.

Thanks again!

[JRScott]

as Fresh says legally they can only report IIB on your credit statements, Pull those and check to make sure they have been.

[BK2008]

I noticed CW is reporting 'satisfactory' on my CRA's, although I have not reaffirmed the loan, and am still paying on it. If it's supposed to be reported IIB 0 balance, why aren't they doing that???

Of course, it's to my benefit I guess that it's open & current in reporting, I have gained 50 points on TU & EX, and 100 points on EQ in the last 1.5 months.

Does anybody have any experience wih CW?? They also tell me if I default after bk discharged, and there is an upside down balance, they can come after me for that difference since the BK will be discharged, and the loan is current. I thought, if it is included in BK, that is it.

I'm confused. I have a call in to my attorney to clarify that.
Im in TX.