New Visitor
Posts: 1
Registered: ‎09-29-2012

Chapter 7/mortgage not reaffirmed/foreclosure


I really am trying to improve my FICO and am just starting. What I am concerned about is that 3 years ago I filed Chapter 7 bankruptcy. I did not reaffirm the mortgage loans. (Had two - one arm and one balloon). My home is finally foreclosing - the bank took 3 years to do it (in which I am not living there but paying assessments!). 

I am concerned that even though my bankruptcy was 3 years ago, and the mortgage loans were discharged, that I am now going to take another hit on my credit. 

I hear different responses - does anyone know what is true?

I did check my report and one of the loan servicing companies had on their that I was over 180 days late on my loan and it was noted that it was foreclosing. It did not state discharged in chapter 7. I disputed it w/equifax and said that it should say discharged and they adjusted it but left a note stating it is foreclosing. 

When I filed bankruptcy, the lawyers ensured me that if I did not reaffirm the house (which was underwater and due to divorce and other circumstances I was now a single income, single parent that could not afford everything by myself) that I wouldn't take another hit on my credit when it foreclosed. 

Thanks for any input and clarification - I really do appreciate it. 

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+