QUESTION
What will happen to the monthly mortgage payments?
Asked on Jun 11th, 2013 on Bankruptcy - Florida
More details to this question:
I filed Chapter 7 and included my home in the bankruptcy. The home has been vacant for a couple of years. Now that the Chapter 7 is finalized, will the monthly mortgage payments due after bankruptcy be reported to the Credit Bureau and noted as missed payments/bad credit?
6 ANSWERS
No, the mortgage company cannot continue to report negative information to your credit reports after you file bankruptcy.
Answered on Jun 11th, 2013 at 7:35 PM
Travis Christiansen
That all depends on how the home was categorized in the bankruptcy. If you re-affirmed the debt then missed payments will be reportable. If you surrendered the home they will likely not be reported and if they are will be far less damaging to your credit than the bankruptcy itself.
Answered on Jun 11th, 2013 at 4:48 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Talk to your bankruptcy attorney. They should be able to explain the situation you are in and how to deal with any issues.
Answered on Jun 11th, 2013 at 4:48 PM
The mortgage company will only report that the debt is discharged in bankruptcy & that your current legal obligation is $0. But that is only part of the story. As long as title remains in your name, you have a legal responsibility as a property owner and any of these obligations that occur after you file bankruptcy are unaffected by your bankruptcy. And foreclosure comes with its own consequences.
Answered on Jun 11th, 2013 at 4:45 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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If you don't want to keep the home, I would contact the mortgage company. They will have you sign a deed transferring title to hem. They should not come after you for any money.
Answered on Jun 11th, 2013 at 4:43 PM
Sanford M. Martin
Assuming that your mortgage was discharged in the Chapter 7 bankruptcy, you are no longer responsible for making payments, so your failure to make payments should have no effect on your credit report.
Answered on Jun 11th, 2013 at 2:14 PM