Yes.
The BK clears the debt. The foreclosure, short sale or deed-in-lieu clears the title.
A different way to look at it is that post-BK you don't owe the $. The house still does.
-SM
Starting Score: ~470 preBK(8/2010)
If your state records foreclosures as public records, yes. The tradeline, however, should read IIB/$0/Closed.
This is why the FHA rules for a new mortgage state: 2 years post Bankruptcy Discharge or 3 years post short sale/foreclosure title-transfer, whichever is later.
I totally paraphrased that... but you get the gist. The clock for you to buy again doesn't start ticking until the title is out of your name. The spirit behind this rule/law is that a homeowner (like me!) can live in the house for years rent-free until the foreclosure happens. The FHA would rather you just execute a short-sale immediately after discharge.
The screw is that there's no way to force a bank to foreclose... which is why you need to short sell if you want to have any control.
-SM
@Chilli wrote:Need advise - In April 2013 a collection account was deleted from 2 of my credit reports. Well, because I put in a dispute with TU. The collection showed back on my other 2 reports amost a year later...saying discharged but show that I'm on a payment plan in February. When the discharge was in Jan.
can something show up after it was deleted almost a year later?
this took my score back down over 35 points!
Dispute. If fail, call FCRA attorney. Get free money. Profit.
Also, stuff like this should probably go in it's own thread.
-SM
@ando35 wrote:I would say it takes 3-4 years to get to 700.
Only if you don't follow the plan. The plan in post 1 of this thread is a proven method to get there in 24 months or less (+/- 10 pts).
-SM
@Chilli wrote:@Anonymous I have an appt. next Wednesday.
question...i've read a lot about keeping limits below 30% ...is that 30% each cc or is it 30% collectively? Again...just curious...still staying on the plan but just wanted to know.
thanks
re-read the plan... the answer is in there! ;-)