I live in VA. My bankruptcy was discharged over 3 years ago (Dec, 2008). I have made my mortgage payments on time ever since the discharge. I recently discovered that I never reaffirmed the loan. I realized that my 3+ years of mortgage payments were not being reported on my credit report. Initially I considered reaffirming, but I realized that I may have an opportunity in front of me to get out of an upside down mortgage with an un-godly interest rate (6.75%). If I stop paying my mortgage now and walk away once the foreclosure process has concluded, will the post BK foreclosure show up on my credit report (the mortgage was included and discharged in the ch 7 bankruptcy)? How long does the F/C process usually take in VA? Did the payments made post BK reaffirm my mortgage in VA?
First, you did not reaffirm unless a signed document was filed with the court before your discharge. Second, it is rare to reaffirm a principal residence debt in bankruptcy. Third, if you get a payment history from your mortgage lender, you can dispute the credit report (providing a copy of your payment history), and the lender cannot deny the report it gave you is wrong. Finally, yes, if you stop paying and a foreclosure results, it will show up on the credit report as a foreclosure when it happened.
You filed bankruptcy because you were not able to handle the credit you had been granted. Why would you be concerned about getting more credit now, when you have been living without it for the last three years? To me, that is asking for trouble in the future.
Foreclosure on credit report? Yes. The lender will state how the relationship terminated.
No idea about the timing.
No, you cannot reaffirm a debt by making payments. that is, in part, why they are not reporting on your credit.
Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.
It is funny that 6.25% is considered ungodly now. Anyway, your personal obligation has been discharged. The rest is irrelevant.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.