Bankruptcy in 2007 (Discharged) Mortgage Not Reaffirmed. Lender is WellsFargo. What are my Options?

[MT_Texas]

To Whom It May Concern.

I am coming to this board to ask what my options are and to validate my research to this point in time.

Situation:  In March 2007 my wife and I filed for a Chapter 7 Bankruptcy that was Discharged in June 2007.  Our mortgage was not reaffirmed and was discharged along with all other debts we had at that time.  We have stayed in the house for the past six years and never been late on any payments, and have alwasy been in good standing. We are now looking to leave the area due to a number of reasons of which I will not go into here.  With the before noted and said I have done some research and am not  getting a real clear answer.

We are considering walking away from the house and renting a house in a new area.  It is my understanding that since the mortgage was not reaffirmed in the bankruptcy and has been discharge we can do this without issue.  The concern / question we have is that when the bank forcloses as they will have to do inorder to take controll of the property is how will it affect our credit report and can they still come after us for anything.

Our property is homesteded in Texas and our mortgage is with WellsFargo.

So in short what are my options? What are others experiances here in Texas? Any advise is apperciated.

Thanks

MT of Texas

[foofighter74]

Well, the debt has been discharged...so the bank can't collect anything from you.

Obviously, the foreclosure would prevent you from buying anything for at least 3 years.  The foreclosure will not be listed on the tradeline as being foreclosed on, as it was discharged in bankruptcy, but the public records section of your credit report may list the foreclosure when it happens, and that will probably push your score down a bit. 

However, i doubt it would prevent you from renting....assuming your new landlord even checks your credit.

[MT_Texas]

Foo Fighter

Thanks for your note.  Do you think or have any thoughts on if the bank may work with me for a deed in lue or cash for keys programs.  It is an FHA Mortage as well.

Thanks

MT

[Tristate]

I'm pretty sure that deed in lieu will have same effect on your score and ability to buy as foreclosure.