We kept our home as exempt property in our bankruptcy but we were not aware of what reaffirming meant. We need to relocate across the country for a job transfer, have no equity, our house is worth less than we own. We are upset that the last few years of making on time payments is not showing up on our credit. If we were to walk away is it going to be another blow to our credit or will it even show? We've had this house for 6 yrs and nothing at all shows on our full credit report
You should ask the lender for a payment history, then send it to the credit reporting agencies, asking them to confirm the history with the lender. Then it should show up as paid on time. Get your new home lined up, and walk away from the old one. Your mortgage debt on the old one has been discharged, so you will not be subject to a claim by the old lender. If it does come after you, it is a violation of the discharge injunction issued in your bankruptcy.
Unfortunately if you do just walk away from the home and they foreclose on the home, it will be a bad mark on your credit report. I may be best to try and short sell it.
My answer is general information not intended to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. If you are in Washington, please feel free to contact us at (425) 283-0432 to see if we might be of assistance.
Check with your bankruptcy attorney to see if you reaffirmed the debt. If you did not reaffirm it, the creditor can foreclose on the property to get title to the property but cannot come after you for any money.
YOur listing of facts fails to indicate if in fact you did reaffirm or not. If not, then the debt was discharged in the bankruptcy and balances and late or timely payments not reports post-petition. If you did reaffirm, then they should be. Irrespective, you do NOT indicate if only one mortgage or if two. If only one, in Washington, almost all mortgage creditors foreclose non judicially and you wont owe any monies to that creditor; if a second mortgage exits and no reaffirmation, they were discharged; if reaffirmation on a 2nd, then they can come after you! PS..I would seriously look at renting the property to obtain as much $ you can out of it if you let it go also when you move..you may receive rent for 8 or more months..and that is money you can use to start over. You should check out difference between short sale..and see if you would owe any taxes on it..if not, you may still receive more monies by renting it out. Let the mortgage company know your change in address also by certified mail so if you are renting it out on month to month, you can see when any sale will be..and tenants do not have to vacate till 20 days after that sale date~ Good Luck. Richard D. Granvold, 26 yrs of practicing bankruptcy