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Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Foreclosure/BK confusion...question

That's great news!!! I am glad you talked to someone that could help you. Congrats! :-)
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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Amythyst
Posts: 139
Registered: ‎01-22-2013
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Re: Foreclosure/BK confusion...question

I'm glad you were able to speak to someone however I guess I'm confused too... just because it isn't on his credit report doesn't mean it doesn't exist.  I know you said one of them doesn't have a public record for some reason (still fuzzy on how something can get foreclosed and not generate a public record)?  And the other one does?  My foreclosure is not on my credit report either (neither is my mortgage for that matter because I disputed them off) but the lender still knew I had a foreclosure and I have to provide them the deed of the foreclosure and make sure I'm past the 3 year mark.  I know every situation is different and different lenders will do different things... but I would be weary to believe that just cause its not on the credit report you don't have to abide by the 3 year rule. 

Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: Foreclosure/BK confusion...question

[ Edited ]

The bank could not list on any credit report that your mortgage was foreclosed on, since the debt was removed with bankruptcy.  There could be a public record of a foreclosure listed on your credit report, but it would not show up under the mortgage entry. That should say "Included in bankruptcy".  Any other comment on it, and the bank has violated the law.

 

IN addition, Foreclosures are not absolved at bankruptcy - as has been stated, only the responsibility for the debt can be. 

 

Regardless of any public records, whether on your credit report, your husband's report, or even listed on a country clerk's website, the fact of the matter is that if there is a property on the credit report, and the debt was discharged at bankruptcy, an underwriter WILL look at the deed record and will find the foreclosure.  If one of the properties was foreclosed on in December 2012, then whoever was on that mortgage cannot have an FHA loan until December 2015.  They can't even open a file. If a foreclosure took place, then the record of that will be available for an underwriter to find.  I'm not trying to rain on anyone's parade, but whether or not a foreclosure is listed on your credit report is irrelevant.  All one needs to do is look up the property online, and a foreclosure will be found.  The credit report isn't the issue.

 

And some lenders have their own overlays and will consider the bankruptcy discharge itself as a kind of foreclosure.  Even if there is no actual foreclosure, you're shedding the responsibility for the debt and some lenders will not finance you until three years after bankruptcy EVEN IF the property never goes into foreclosure. 

Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012
0

Re: Foreclosure/BK confusion...question

First of all, we are 4 years post Bk do if they were to consider that a foreclosure in itself, that's fine.

Secondly, not sure what there is to be fuzzy about and not really appreciating the negative implications. No, I didnt say one was on public record and one wasn't.

Plain and simple, there are no foreclosures on public record of my husbands credit report. There is a Bk from 2009. After this summer, the entire mortgage will be gone from his credit report because this began 7 years ago. Not sure how they will know he owned these properties when there are no mortgages on his credit report and no record of foreclosure listed under his credit report.

I am not waiting until 2015 bc the bank chose to take 7 years to foreclose. Yes, a lender will see the BK but there will be NO mortgages listed. I don't know why there is nothing listed under the public records section regarding this, but there isn't.

I guess we will see what happens. There are differing opinions on how this will be viewed. Only time will tell.
Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012
0

Re: Foreclosure/BK confusion...question

Foofighter-I just reread your post and wanted to clarify that there will not be a mortgage on his report at the time of application.
Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012
0

Re: Foreclosure/BK confusion...question

Amythyst-how did your lender know of your mortgage if it isn't on your credit report? Clearly I have never applied for a mortgage before so this is all foreign to me. I think I an missing what you are all saying. I'm usually not this clueless but if it's not on his report and not on the public record section of his report, why would a lender search further and where would they search?
Contributor
Amythyst
Posts: 139
Registered: ‎01-22-2013
0

Re: Foreclosure/BK confusion...question

Hi there, no worries... it can all be a little confusing.  A foreclosure creates a searchable record (outside of your credit report) that lenders will search when you apply for a mortgage.  A foreclosure exists whether its on your credit report or not.  Just like I have had my bankruptcy removed from my credit report as well but it still exists and is searchable in the public records database.  

 

A public record does not specifically reside on your credit report.  They can show up on your credit report in the public records section but they are not removed or gone if they don't show up on your credit report.  Its just like if you had a credit card and that credit card just happened to not be on your credit report... the credit card still exists and you can use it, it just isn't being reported on your credit report.

 

Does that make more sense?

Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: Foreclosure/BK confusion...question

Using your social security numbers, etc, the underwriters will look to make sure that you are not listed on a property or mortgage that was foreclosed on within the last three years.  It's just a basic part of the mortgage process.  The credit report is just one tool. 

 

Also, if you don't disclose it, it's mortgage fraud anyway. 


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