Reply
New Member
stepsal
Posts: 4
Registered: ‎10-20-2011
0

Bankruptcy AND Foreclosure

Hi-

 

My husband and I are divorcing... we filed chapter 7 about a year ago and were discharged in January. 

 

Now that we are divorcing, neither of us can afford the mortgage on our own, and I can't afford to pay my part of the mortgage and rent a place.

 

Does anyone have any info on how a foreclosure will effect my credit when I have already filed a BK?  Obviously I would rather sell the house, but I don't think that will come about amicably.

 

My divorce lawyer says I will be screwed FOREVER but I know BK's last for about 7-10 years and so do Foreclosures, and that after 2 years you can usually start to get back on your feet...

 

Any insight would be greatly appreciated!

 

 

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Bankruptcy AND Foreclosure


stepsal wrote:

Hi-

 

My husband and I are divorcing... we filed chapter 7 about a year ago and were discharged in January. 

 

Now that we are divorcing, neither of us can afford the mortgage on our own, and I can't afford to pay my part of the mortgage and rent a place.

 

Does anyone have any info on how a foreclosure will effect my credit when I have already filed a BK?  Obviously I would rather sell the house, but I don't think that will come about amicably.

 

My divorce lawyer says I will be screwed FOREVER but I know BK's last for about 7-10 years and so do Foreclosures, and that after 2 years you can usually start to get back on your feet...

 

Any insight would be greatly appreciated!

 

 



The Chapter 7 BK is done and will stay with you for the next 10 years. You can work on improving your credit and will get stronger as time goes on.

 

Adding a foreclosure will have another negative impact on your credit. You can usually start applying for a home mortgage after a few years has lapsed from foreclosure. But keep in mind a few years later with the BK reporting your scores may not qualify you. Some places will check your credit to rent also and this may have an impact on you being able to rent and your utilities which will charge you higher deposits in most cases. Have you thought about the possibility of still living in the home? Can you live as room mates until the home is sold or at least try it out?

 

I know that it is something that isn't easy to do when getting divorced and things are not going amicably, but hopefully you both can sit down rationally and realize that it is actually probably best for both of you until the home is sold. If you both can not come to agreements then it will probably end up being a foreclosure or a short sale, and then you will have to work on rebuilding. Rebuilding can be a pain but will be rewarding as things improve and you want to get back on your feet again.

 

You are always welcome to come back here and ask for advice and any help and opinions as you need. 

 

Hope things work out.....

Good Luck
May all your dreams and wishes become a reality!
New Member
stepsal
Posts: 4
Registered: ‎10-20-2011
0

Re: Bankruptcy AND Foreclosure

I acutally just found out that we may not have reaffirmed our mortgage when we filed the BK... so if that is true I don't need to worry about the foreclosure... I am hoping this is the case.

 

The problem isn't living together... the problem is that we have to live separatly for 1 year before we can file for a divorce... so if it takes forever to sell the house, plus add a year of separation, it could take forever to divorce. And no I don't know if I could live with him that long, especially when he doesn't want to sell.

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Bankruptcy AND Foreclosure


stepsal wrote:

I acutally just found out that we may not have reaffirmed our mortgage when we filed the BK... so if that is true I don't need to worry about the foreclosure... I am hoping this is the case.

 

The problem isn't living together... the problem is that we have to live separatly for 1 year before we can file for a divorce... so if it takes forever to sell the house, plus add a year of separation, it could take forever to divorce. And no I don't know if I could live with him that long, especially when he doesn't want to sell.


When you are ready to start rebuilding we are all here to help and assist. Hope things do not go to badly through the divorce. 

Good Luck
May all your dreams and wishes become a reality!
New Member
stepsal
Posts: 4
Registered: ‎10-20-2011
0

Re: Bankruptcy AND Foreclosure

Thanks!! I am waiting to hear from my BK lawyer about whether we reaffirmed...

 

I don't remember signing anything and DH says we reaffirmed, I don't know.

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Bankruptcy AND Foreclosure


stepsal wrote:

Thanks!! I am waiting to hear from my BK lawyer about whether we reaffirmed...

 

I don't remember signing anything and DH says we reaffirmed, I don't know.


You can look over your BK papers it will tell you. 

 

Just thinking about you saying he doesn't want to sell. If he doesn't want to sell then have him refinance the home in his name only or with some one else as long as it is out of your name. Of course this would be irrelevant if your mortgage wasn't reaffirmed. Whether or not he can afford the payments on his own should not be your concern. Your concern I would believe is since you are getting divorced you want to end all ties. Also check all credit cards and other loans that may be in both names, if they are joint accounts you need to close the accounts and if you or your DH are authorized users of the accounts you need to remove yourselves also.

Good Luck
May all your dreams and wishes become a reality!
New Member
stepsal
Posts: 4
Registered: ‎10-20-2011
0

Re: Bankruptcy AND Foreclosure

Well I don't know that they will let him re-fi the house into his own name. I don't think he will qualify.

 

We already split the bank accounts, and never had any joint credit cards, just were authorized users on each others, which has been canceled.

 

Thanks!


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}