Discharged Chapter 7 no foreclosure yet

[Anonymous]

I had a chapter 7 discharged in 2010 and included my mortgage in the BK.  Currently my credit score is 695 and the report indicates "Mortgage included in BK".  The bank has not officially foreclosed on the house and is paying taxes and community dues.  My question is this..  When they do report the foreclosure, will it lower my score or no since the mortgage was already included in bk?  Will they even report it? Also, if I want to buy a new home, will the lender go by my discharge date or the date of the official foreclosure, which has not happened yet?

Thanks!

[chasmith]

The lender will go by the date the deed is taken out of your name and you'll have to wait three years after that...

[Anonymous]

That's what I thought.  Although in this day and age I could care less.  No rush to get into another home.  Will it lower the credit score if it posts or will it just show as a public record if at all?

[chasmith]

I'm not an expert in the mechanics of foreclosure, and it's very dependent on your state law and lender.  My general impression is that nothing will post to the three CRAs about your foreclosure.  There's another system real estate lenders can use to determine the date of deed transfer.  Especially in "judicial foreclosure" states the banks are taking years to get around to foreclosing.  It may be in your interest to press them to get the deed out of your name to start the three year clock, not because you want to buy another home soon but to preserve your options.

A foreclosure when your debt has been discharged may be a lawsuit against the property (an archaic process) to convert the lien to full title.