Sorry if this question has been answered, but I can't seem to find any consistent information to apply to my situation:
Does foreclosure show on your credit report as a public record or only as a tradeline (i.e. the mortgage)?
I am surrendering a house in my chapter 7 which suggests to me that the trade account for the mortgage will ultimately list a $0 balance and a derogatory IIB. After discharge, I assume the bank will foreclose on the house, but I have no idea how long this will take. Once they finally foreclose, will I be hit with a derogatory public record "foreclosure" possibly months or even years after my bankruptcy?
Not that this has happened to me but I work in real estate and it is recommended to have the bankruptcy and foreclosure at the same time. As you stated the foreclosure can take years after a bankruptcy. I acquired a property where the homeowner filed bankruptcy 9 years before the bank finally tried to foreclose. Most attorneys will tell you to do bankruptcy right away but depending on what your state requirements are you can file the bankruptcy before the first day your foreclosure is scheduled.
I let my house go 1 year prior to filing bankruptcy. It never posted on my report as a public record. The actual tradeline reflected the lates and ultimately the foreclosure. If at all possible you really need to wait to file the bankruptcy after your foreclosure is complete.
For the most part most homeowners I have dealt with have lived in the property till the house has been scheduled to foreclose. They can go years without paying the mortgage and then file bankruptcy and try to renegotiate the mortgage or a short sale but it depends on the type of mortgage you have and who owns the note at the moment?