Being forclosed on after Chap7 discharge.

[rogerd12]

I was discharged in Chapter 7 in August 2010. My ex wife was living in the house that was discharged and was making the payments. She was not on the loan just on the deed.
Anyway she walked away from it last year. Bank is now coming after me for it. I did not reaffirm this loan, all my debt including this house was discharged in Chap. 7 and today I learned the mortgage company dinged my credit for this and I am being served foreclosure paperwork. I am in South Carolina. My attorney says don't worry about it. Anybody know if this is normal? More importantly, I have been working hard to fix my credit now this is happening? Any help would be greatly appreciated... Thanks

[despritfreya]

The lender has the right to foreclose and must abide by notice requirements under state law, hence the notification(s) sent to you which, if your are in a judicial foreclosure state, would include the filing of a law suit. Eventually your CR may or may not show that the property was foreclosed. There is no specific law prohibiting the reporting of the foreclosure and there is case law that states such is not a violation of the discharge. I do not know if the foreclosure will actually show up on the CR - only time will tell.

As to dinging your credit for failure to pay after you filed bk, get a copy of the report. It should simply state that the account was IIB.

Des.

[rogerd12]

The lender has the right to foreclose and must abide by notice requirements under state law, hence the notification(s) sent to you which, if your are in a judicial foreclosure state, would include the filing of a law suit. Eventually your CR may or may not show that the property was foreclosed. There is no specific law prohibiting the reporting of the foreclosure and there is case law that states such is not a violation of the discharge. I do not know if the foreclosure will actually show up on the CR - only time will tell.

As to dinging your credit for failure to pay after you filed bk, get a copy of the report. It should simply state that the account was IIB.

Des.

Thank you for the quick response. I appreciate the info.