I had my mortgage discharged in chapter 7 bankruptcy. It is currently in foreclosure. Some say the foreclosure is not supposed to be added to ones credit report if the foreclosure occurs after the debt was discharged. Does anyone know the right answer. If you answer, please indicate how confident you are in your respone and why. Thank you.
It depends on when the judgment of foreclosure is entered. If the judgment was filed before you filed the bankruptcy it will (and should be) on the credit report. If the judgment of foreclosure is filed after the dischrarge then it should not show up as a foreclosure on the credit report. I am very confidant of the law but credit reporting errors are common and the Court may report the information to the CRA's and if they do it is likely it will be on the report.
Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.
It will likely show up on your credit report even if the foreclosure occurs after the debt was discharged. The lien still exists at the close of the bankruptcy, even if personal liability for the debt has been discharged. The foreclosure is an historical fact that can be reported.
I am confident about the answer because I have seen it reported that way in the wake of countless bankruptcies.
Please consult an attorney who is licensed in your state to evaluate your case if you have any questions at all. This communication does not in any way create an attorney client relationship.
I have also seen foreclosures on credit reports after bankruptcy. The reason is because a foreclosure is an enforcement of a lien on the real estate whereas the discharge acts to wipe out the personal liability on the promisorry note executed at the time the mortgage is taken. However, some reporting agencies will work with you to clarify issues on the report. I would be happy to dicuss this further. Please contact me.
Debra G. Simms