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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

I was discharged through Chapter 7 and have no financial responsibility to property other than maintaining it. No reaffirmation. Moved out well in advance of discharge thinking I was doing the right thing. Want to get my name off deed, but bank is not responding to my calls. Bank said they would be in touch when they received notification of the discharge. Am trying to save myself attorney fees by using this forum. Also it seems I have been paying rent unnecessarily when I could have stayed in the other place. From this information, can anyone sense what would be the next best move on my part?

Thanks for any and all help.

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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

Look at soulmasters posts above - it gives a great summary as to what happens.

To speed up the process, short sale the house or Deed in Lieu and it will no longer be in your name. Normally the bank won't even consider a DIL until you have gone down the short sale route (many, not all lenders require a short sale attempt first).

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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

+1 on what SoulMaster wrote. He explained the process and the options very clearly.
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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

Does anyone have answer for this? I filed chapter 7 in 2010 and didn't reaffirm home, I need to know what paperwork I need to reopen chapter 7 so I can now reaffirm it. I don't want to use a lawyer but the court won't tell me the correct paperwork I need! Can anyone help please !
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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

 
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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

SoulMaster

 

I gave my house up in a chapter 7 BK in August of 2009.  The reported a forclosure as of 4/5/10.  I am now buying a house and they want to know why I have a forclosure.  Forgive me for being slow but exactly what is IIB?  

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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question


jmack62 wrote:
Does anyone have answer for this? I filed chapter 7 in 2010 and didn't reaffirm home, I need to know what paperwork I need to reopen chapter 7 so I can now reaffirm it. I don't want to use a lawyer but the court won't tell me the correct paperwork I need! Can anyone help please !

why in the world would you ever reaffirm the mortgage?  the courts probably won't tell you so you do go to an attorney and set you straight....there is absolutely zero benefit to doing so.

Filed BK7: 7/12 (discharge 10/12) 5/12- EQ FICO - 508 / TU FICO - 490
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TU FICO: 651 (01/15)
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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

I can't speak to the whole foreclosure issue but, SrfrGrl, IIB = included in bankruptcy. :smileywink: Hang around here and you will catch onto the acronyms in no time!

Filed Chapter 13 bankruptcy 04/12 after two and a half years in a DMP. So wish we would have done the BK sooner. Live and learn!
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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question

@grassfeeder:  I have to 100% disagree with you.  There are plenty of reasons why someone would want to reaffirm a mortgage.  You may disagree with it but to others, there are many good reasons.  The first is that you get to keep your house and all its equity.  Why would someone want to give up thousands of dollars in equity if they have equity and it a forced sale is not required?  Another reason is the monthly positive reporting by the CRA.  When you do not affirm, the mortgage will not report.  A mortgage that reports positiver is ALWAYS better than no reporting.

 

There are many reasons not to affirm too.  However, everyone has unique situations.  Just remember there are many solutions to one problem and reaffirming could, to many, be a very good thing.

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MyFICO MAY13: EQ=701, TU=708, EX=705 (Lender Pull).
MyFICO JAN13: EQ=701; TU = 677) 2 years after filing BK7, 18 months after discharge in JUN11
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Re: Chapter 7 already discharged - mortgage not reaffirmed - foreclosure/credit score question


thonati wrote:

@grassfeeder:  I have to 100% disagree with you.  There are plenty of reasons why someone would want to reaffirm a mortgage.  You may disagree with it but to others, there are many good reasons.  The first is that you get to keep your house and all its equity.  Why would someone want to give up thousands of dollars in equity if they have equity and it a forced sale is not required?  Another reason is the monthly positive reporting by the CRA.  When you do not affirm, the mortgage will not report.  A mortgage that reports positiver is ALWAYS better than no reporting.

 

There are many reasons not to affirm too.  However, everyone has unique situations.  Just remember there are many solutions to one problem and reaffirming could, to many, be a very good thing.


I understand the monthly reporting, however it doesn't gain you that much ground that its worth increasing liability.  As for equity, as long as you keep paying as agreed, you'll live there just as you always have.  Your principal will continue to decrease, just as it always has - and if you want to sell it, great - sell it and keep the equity built.  That equity doesn't go to the bank - they get paid what they're owed - regardless.  The only thing reaffirming will provide you is liability.

Filed BK7: 7/12 (discharge 10/12) 5/12- EQ FICO - 508 / TU FICO - 490
EQ FICO: 674 (01/15)
TU FICO: 651 (01/15)
EX FICO: 671 (01/15)
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