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Chapter 7/mortgage not reaffirmed/foreclosure

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Chapter 7/mortgage not reaffirmed/foreclosure


I really am trying to improve my FICO and am just starting. What I am concerned about is that 3 years ago I filed Chapter 7 bankruptcy. I did not reaffirm the mortgage loans. (Had two - one arm and one balloon). My home is finally foreclosing - the bank took 3 years to do it (in which I am not living there but paying assessments!). 

I am concerned that even though my bankruptcy was 3 years ago, and the mortgage loans were discharged, that I am now going to take another hit on my credit. 

I hear different responses - does anyone know what is true?

I did check my report and one of the loan servicing companies had on their that I was over 180 days late on my loan and it was noted that it was foreclosing. It did not state discharged in chapter 7. I disputed it w/equifax and said that it should say discharged and they adjusted it but left a note stating it is foreclosing. 

When I filed bankruptcy, the lawyers ensured me that if I did not reaffirm the house (which was underwater and due to divorce and other circumstances I was now a single income, single parent that could not afford everything by myself) that I wouldn't take another hit on my credit when it foreclosed. 

Thanks for any input and clarification - I really do appreciate it. 

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