My BK7 was discharged in Jan 2011, and my mortgage was not reaffirmed. Since then I've been able to get my FICO back up to 690. Checked here at myFICO yesterday, EQ score. I know this may sound strange, but I had very good credit before the BK, and only two 30 day late pays. It was the massive amount of debts and the payments that were sinking me. Since the BK I've been rebuilding, and was able to keep a card that I've had for 18 years now, which I use and pay each month.
I decided in Oct 2011 to no longer continue to make the payments on my upside down mortgage, BOA has not reported any negative marks on my credit since the debt was discharged and not reaffirmed. It shows on my credit report as "Discharged, Included In Bankruptcy", and $0 balance, but not closed.
I'm considering accepting a Deed in Lieu of Foreclosure offer from BOA, and I'm curious of how this will affect my credit. BOA has stated that they will report as "settled", or "Paid Settlement", which is better than foreclosed, but not much better. It would still take me out of the mortgage lending game for 3 more years. Are they even legally allowed to report "Settled" or "Deed in Lieu" on a discharged debt, considering that it would be another negative mark? My understanding is that the creditor cannot post any negative remarks after the debt has been discharged. Does anyone know how a Deed in Lieu would affect credit after a CH7 BK? I'd like to keep rebuilding my score to get into the mid 700's.
