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

New Visitor

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.

Message 11 of 96
Moderator

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).

Message 12 of 96
Valued Contributor

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.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 13 of 96
New Visitor

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 !
Message 14 of 96
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New Visitor

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

 
Message 15 of 96
New Visitor

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?  

Message 16 of 96
Frequent Contributor

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.

Message 17 of 96
Established Contributor

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. Smiley Wink Hang around here and you will catch onto the acronyms in no time!

Filed Chapter 13 April 2012. Case successfully closed May 2017, about 1 month after 60th payment. FAKO scores on close date: TU 695 EQ 697. Received discharge July 11th - took forever! Real EX day of discharge 624.
Message 18 of 96
Established Contributor

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.

F'08 APR16: EQ714, EX675, TU679; Clean since BK7 D/C 6/2011
Message 19 of 96
Frequent Contributor

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.

Message 20 of 96