QUESTION
Can a mortgage report foreclosure on your credit report if the mortgage was included in the bankruptcy?
Asked on Mar 04th, 2013 on Bankruptcy - Michigan
More details to this question:
The bankruptcy was discharged in 2010 and the mortgage was included. The mortgage company foreclosed on it in 2012. Now the mortgage company is reporting it as a forclosure on the credit report. Can they do that since it was included in the bankruptcy?
6 ANSWERS
Business Law Attorney serving Bingham Farms, MI
at
James T. Weiner, P.C.
Update Your Profile
Generally it should not be included on your credit report because it was discharged in bankruptcy. Check out the fair credit reporting act FCRA and use it's procedures to challenge their report of it.
Answered on Mar 06th, 2013 at 2:32 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
The bankruptcy discharged your legal obligation to pay the debt. It did not remove the lender's lien on the property. The foreclosure completed the lender's rights as to the property. Therefore, you will have both a bankruptcy and a foreclosure on your credit.
Answered on Mar 06th, 2013 at 2:31 PM
William A. Siebert
Yes. Bankruptcy does not stop foreclosure; it stops remedies beyond foreclosure.
Answered on Mar 06th, 2013 at 3:22 AM
Generally only 2nd mortgages are discharged in a Bankruptcy filing not 1st trust deeds. That sounds like what happened here. The 1st was not discharged and the house was ultimately foreclosed upon. So you have the double whammy of a foreclosure and a Bankruptcy on your record. You should have short sold the property.
Answered on Mar 06th, 2013 at 2:56 AM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
Assuming it was a Chapter 7 and the mortgage was not reaffirmed, the mortgage company should not report anything other than either included in or discharged in bankruptcy and a zero balance in its trade line. However, the credit bureaus may be picking up the public record created by the foreclosure, so if you are seeing the judgment in the public records section of the report that is the cause of the problem. In either situation, you should dispute the references to the foreclosure with the credit bureau, based on the fact that the mortgage was discharged in 2010, and see if it is removed.
Answered on Mar 06th, 2013 at 2:52 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Yes, because it is true.
Answered on Mar 06th, 2013 at 2:50 AM