foreclosure protected by bankruptcy?

[morpheus918]

I have owned a mobile home since before I filed for bankruptcy 7 years ago. I have always been current on all payments and have never been 30 days late. However, I am seriously considering letting the mortgage company foreclose. My desire is to avoid or minimize any repurcussions to my credit when this happens. The loan was included in the bankruptcy and not reaffirmed, however, my sister continued to live there and make payments. In stead of waiting for several months of delinquent payments before foreclosure, is there a way to sign a letter to the mortgage company giving back the mobile home without incurring any negative reports to the credit bureau? My thought is that since it was included on my bankruptcy from 7 years ago, there is no reason that I should incur negative consequences for foreclosure today. I want to avoid having a 30 day late notation on my report as well. Is there a way to accomplish this or is it just wishful thinking?

[SinkingFast]

Hi Morpheus and Welcome to the Forum!

I took your post off that old thread and created a new one.

Unfortunately, you'll probably take a hit on your Credit Reports with a Foreclosure listing.

When BK and Foreclosure occur together, prospective Lenders view the 2 as one single event. Also, having both happen close together allows for the Credit hit to occur at once. With time, and rebuilding with positive tradelines, the impact fades.

When time lapses between filing BK and the Foreclosure, they become 2 seperate entities and you get dealt a double whammy on your Credit. You won't owe any deficiency balance. Your personal liability was Discharged in your BK. But the Foreclosure will be a seperate, free standing event that will once again ding your Credit.

[CindyLou]

Your mortgage company should not even be reporting ANYTHING on this account...positive or negative since it was included in BK. check your credit report, it probably says "zero balance, IIB" So, it shouldn't affect your credit at all because shouldn't be updated at all. Its the same as giving a car back after BK. It does not show up as a repo. Let us know what your credit report says. Or jus pick up the phone, call your mortgate company. Ask for the BK department and ask them how they report it. They will tell you.