Question on credit score after bk and foreclosure...

[HAP]

Hello all,

We were discharged from Chapter 7 in early May (we gave up everything including our house). I just checked my credit score (through Transunion I think) the other day and it was 574. Not good but better than I thought it would be. My question is this, Wells Fargo will be auctioning the house off next month, will my credit score go down even further because of the foreclosure? Not really sure how that works since we quit paying our mortgage in February and were discharged in May.

Thanks for any insight!

[BassBoy]

Your credit score should not be affected any further by the BK. When you surrender a home in a Ch.7, the debt should be listed as Included in BK and no lates after your filing date.......the foreclosure doesn't show up at all. If the debt shows up as IIB and foreclosre, then that's inaccurate because you surrendered the home and you should dispute that inaccuracy.

I would say your scores are pretty good considering. Our scores weren't bad either. I would guess that in some cases, the credit scores go up after a BK because they are no longer strapped with debt. Having too much debt and lates is bad for your credit scores. Just a side note.......having a good payment history prior to a BK is also a good thing.