New on this board so thanks for, hopefully some good information.
I live in Northern California and I received a bankruptcy discharge in 2010 and clearly my credit tanked, to be expected, sub 400.
The discharge included a first and second mortgage, two cars which were repossessed by the bank and a few credit cards.
Since then my credit has been steadily climbing and I am currently at a score of 677 and improving. That's the good news.
My assumption was that the bank, since the first and second mortgage were both discharged with the BK, would take the house. Mind you that as of today, all of the three credit bureaus reflect the debt on the mortgagees, (1st and 2nd), as being discharged.
However, I recently found out as I was thinking of purchasing a small condo or town home, (in my mind three years after the BK I was "allowed" to do this by the courts), that I still have title to the house. Yes, I was shocked and called the BK attorney to see if a mistake had been made. He was quick to tell me that only the debt was discharged but that to get rid of the title the house had to short sale or the bank had to foreclose. He never advised of this when he did the BK legal stuff and I would have never even thought to ask about this, so I never asked. How can you ask a question which in your head you don’t' even know is a question?
So over the past almost four years the bank has not foreclosed on the house and I was never approached to short sell the house. So now, after calling the lender, who has changed no less than four times since the BK, and telling them of my situation, they assigned a broker to short sell the house.
So the BIG QUESTION is, once the house short sells, does my credit immediately plummet back below 400, again, as if the past three plus years had never happened?
I sure would appreciate some guidance on this. Thank You
