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New Contributor
livingfree
Posts: 54
Registered: ‎04-23-2012
0

Transfer of deed filed after Chapter 7

I filed chap 7 in March 2011 and it was discharged in August 2011.  I included a mortgage.  The problem is the transfer of title has not taken place yet.  I called the bank and the sale will be June 13, 2012 and then it will take several weeks for the transfer to take place.  How will this affect my credit? Can I expect scores to decrease?  Thanks for responses. 

5/13/13 EQ 636 (Myfico), TU 660 lender pull , EX 640 lender pull
Barclay Rewards MC $2300, Cap One $750, Walmart $800, Macys $2000, Lane Bryant $600.
Regular Contributor
ji9
Posts: 139
Registered: ‎10-14-2011
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Re: Transfer of deed filed after Chapter 7

It may not effect them at all.  Our transfer of deed never even showed up on our credit report.  It just shows our mortgage as Included in BK and closed.  There was never any public record added to our credit report for the foreclusre deed.  I think it has something to do with the timing of which came first, the BK or the Deed. 

Starting Score: 608 (TU) 612 (EQ)
Current Score: 679 (TU) 679 (EQ)
Goal: 760 on all
New Member
backfrombk
Posts: 3
Registered: ‎06-24-2011
0

Re: Transfer of deed filed after Chapter 7

I am  pretty much like you. I filed ch 7 first in 02/2011 then the foreclosure sale of the house took place almost a year later in 03/12 The deed was registered 3 days after the sale. It affects your credit in the sense that it will be that date of transfer that will be used to calculate when you can purchase another house whether you go FHA or conventional and not date of discharge or filing of bankruptcy. At least in California, ymmv. There was no indication on the credit report of the transfer of deed. The score went up cause I am working on rehabilitating my school loans and other credit. I don't remember where I read it but it was saying that it was better to file bankruptcy first then have a foreclosure. You don't get two dings on the credit report but if done foreclosure then bankruptcy you get both listed on the credit report, ymmv. 

 

7/16/2010: FICO EQ: 514  TU: 521

7/1/2011:   FICO EQ: 631  TU: 509

2/2/2012: FICO EQ: 643 TU: 618

4/4/2012: FICO EQ: 649 TU: 618

4/19/2012: FICO EQ: 662 TU: 662 

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Senior Contributor
StartingOver10
Posts: 4,562
Registered: ‎03-06-2010
0

Re: Transfer of deed filed after Chapter 7


backfrombk wrote:

I am  pretty much like you. I filed ch 7 first in 02/2011 then the foreclosure sale of the house took place almost a year later in 03/12 The deed was registered 3 days after the sale. It affects your credit in the sense that it will be that date of transfer that will be used to calculate when you can purchase another house whether you go FHA or conventional and not date of discharge or filing of bankruptcy. At least in California, ymmv. There was no indication on the credit report of the transfer of deed. The score went up cause I am working on rehabilitating my school loans and other credit. I don't remember where I read it but it was saying that it was better to file bankruptcy first then have a foreclosure. You don't get two dings on the credit report but if done foreclosure then bankruptcy you get both listed on the credit report, ymmv. 

 

7/16/2010: FICO EQ: 514  TU: 521

7/1/2011:   FICO EQ: 631  TU: 509

2/2/2012: FICO EQ: 643 TU: 618

4/4/2012: FICO EQ: 649 TU: 618

4/19/2012: FICO EQ: 662 TU: 662 


+100 Exactly right

New Contributor
livingfree
Posts: 54
Registered: ‎04-23-2012
0

Re: Transfer of deed filed after Chapter 7

Thanks so much for answering.  The home was sold July 3, 2012 and nothing on credit report so far (fingers crossed).  So how long is it going to take me to buy another home?

5/13/13 EQ 636 (Myfico), TU 660 lender pull , EX 640 lender pull
Barclay Rewards MC $2300, Cap One $750, Walmart $800, Macys $2000, Lane Bryant $600.
Community Leader
Senior Contributor
StartingOver10
Posts: 4,562
Registered: ‎03-06-2010
0

Re: Transfer of deed filed after Chapter 7

[ Edited ]

For a new loan after a Ch 7, if you finance an FHA loan it will be 3 years from the date the deed was transferred from you to the bank. Don't make application until 3 years has passed as the underwriter looks at the time period from the deed transfer date to the new app date. :smileyhappy:

If you are looking to do a conventional loan, then its 4 years.

For USDA its 3 years.

For VA it's 2 years.

 

If there are extenuating circumstances the time period can be reduced.

Time periods for Bk 13 and short sales or foreclosures are different.

New Contributor
livingfree
Posts: 54
Registered: ‎04-23-2012
0

Re: Transfer of deed filed after Chapter 7

Thanks, well it looks like I will be waiting for three years.  At least I should be able to save a hefty down payment.

5/13/13 EQ 636 (Myfico), TU 660 lender pull , EX 640 lender pull
Barclay Rewards MC $2300, Cap One $750, Walmart $800, Macys $2000, Lane Bryant $600.

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