QUESTION
Will the foreclosure appear with the credit bureaus, even though all were discharged years ago?
Asked on Oct 18th, 2016 on Bankruptcy - Nevada
More details to this question:
My home and 2nd mortgage were discharged as part of a bankruptcy in 2009. I have now been contacted by the law firm doing the foreclosure proceedings. I have been told that my being on the deed means they must name me in foreclosure. I understood I have no legal obligation to the property, debt, liens etc.
5 ANSWERS
Although creditors are prohibited from reporting payment information on debts that have not been reaffirmed after a bankruptcy, with a foreclosure, the information is part of the public record and gets reported to the credit bureaus. So this information will legally appear on your credit report because the creditor or mortgage company is not placing it on your credit report. Other options are available to prevent this but require effort by you.
Answered on Nov 09th, 2016 at 4:12 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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Probably.
Answered on Nov 09th, 2016 at 4:08 PM
2 Awards
You have no legal obligation to pay the debt; however, since the property is still in your name the only way for the bank to get it out of your name is to do a foreclosure sale. You could do a short sale in lieu of a foreclosure sale but that is at the banks option to except. If you're interested in this option I recommend that you discussed it with the real tour. Yes, the foreclosure will show on your credit report.
Answered on Nov 09th, 2016 at 4:07 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, a foreclosure is a lawsuit and all lawsuits are listed in credit reports. To avoid this, speak to the attorney about doing a deed-in-lieu (signing the property over to the lender without a lawsuit).
Answered on Nov 09th, 2016 at 4:07 PM
Credit reporting agencies only report factual information. You can supplement your reports with "factual" information, and should.
Answered on Nov 09th, 2016 at 4:07 PM