Chpt 7 on home loan

[LOANQUESTIONGUY]

4 yrs ago we filed chpt 7 we did not reaffirm with our 1st and 2nd mortgages. We have kept the payments current this whole time. We are about to start missing payments. Can the mortgage companies report the forclosure and late payments on our credit even though we did not reaffirm? How long does it take for them to get to the point that we have to move out?

Thanks!

[Evan Bedard]

4 yrs ago we filed chpt 7 we did not reaffirm with our 1st and 2nd mortgages. We have kept the payments current this whole time. We are about to start missing payments. Can the mortgage companies report the forclosure and late payments on our credit even though we did not reaffirm? How long does it take for them to get to the point that we have to move out?

Thanks!

Welcome and thanks for joining the community.

If you never reaffirmed your mortgage(s) after bankruptcy the creditors will not be reporting the debt to the credit bureaus. If you have yet to miss a payment, depending on your state, it could easily be 6+ months before a foreclosure date is set. We have members here who are over a year delinquent on their payments without a set date for foreclosure.. What state are you located in?

[LOANQUESTIONGUY]

We are in Missouri. So you are saying the mortgage company will not or they are not allowed and cannot report on our bureau? I talk to the court house an attorney and a credit repair place and they said they could report once we started to miss payments and the foreclosure. I also had another attorney tell me that they could not report. This is why I am so confused, opposite answers from people in the same proffession. Not sure who knows what.

Thanks

[Evan Bedard]

Here is an article Moe wrote in regards to this topic several months ago:

When you do not reaffirm your home loan obligation after bankruptcy, this means that you are not personally liable on the promissory note associated with your mortgage. Your home will remain under the original loan agreement as you resume making payments. The title does not change and you still own the home. You are just not personally liable.

Not reaffirming the mortgage after bankruptcy simply means that you are no longer personally liable for the mortgage. This can be great news for many BK filers who cannot be held personally liable if they were to walk away from their homes because they cannot be sued for any deficiency judgments.

The bad news is that your credit report will note that the mortgage was discharged in bankruptcy and even though you are making payments, your report will not reflect your newly established good payment history. This is because you do not have to make payments and you are not utilizing credit. You might think you are actually rebuilding your credit score back up by paying your mortgage on time and paying period but you may not be gaining anything at all. When it comes to some people, they do not know this and years later when they want to take out a larger loan, they wonder why their credit score is still so low. They may even get denied for the loan because of the low credit score or lack of mortgage history.

However, if you do pay off your mortgage, you will still receive title to the home. Once the home is paid in full, the home is yours. Whether you reaffirm your home loan or not.


After you file bankruptcy, you will have to make a choice to reaffirm your mortgage or not to reaffirm. Some homeowners will elect not to do this because they plan to walk away from their homes and do not want the personal liability hanging over their heads. While others who want to stay in their homes with the benefits of good credit will most likely decide to reaffirm their mortgage.
What Happens If You Do Not Reaffirm Your Mortgage in Bankruptcy? | LoanSafe.org

[Angels]

They cannot report anything nor can they attempt to collect a debt that was discharged in a bankruptcy - period. If they do report a foreclosure on your credit or attempt to collect from you, you can sue them and you will prevail.

You said you did not re-affirm? Then you have nothing to worry about!

Don’t trust the credit repair place. They obviously don’t know what they are talking about and probably want you to pay them for their service. Run as fast as you can from them.

[Angels]

Here is an article Moe wrote in regards to this topic several months ago:

When you do not reaffirm your home loan obligation after bankruptcy, this means that you are not personally liable on the promissory note associated with your mortgage. Your home will remain under the original loan agreement as you resume making payments. The title does not change and you still own the home. You are just not personally liable.

Not reaffirming the mortgage after bankruptcy simply means that you are no longer personally liable for the mortgage. This can be great news for many BK filers who cannot be held personally liable if they were to walk away from their homes because they cannot be sued for any deficiency judgments.

The bad news is that your credit report will note that the mortgage was discharged in bankruptcy and even though you are making payments, your report will not reflect your newly established good payment history. This is because you do not have to make payments and you are not utilizing credit. You might think you are actually rebuilding your credit score back up by paying your mortgage on time and paying period but you may not be gaining anything at all. When it comes to some people, they do not know this and years later when they want to take out a larger loan, they wonder why their credit score is still so low. They may even get denied for the loan because of the low credit score or lack of mortgage history.

However, if you do pay off your mortgage, you will still receive title to the home. Once the home is paid in full, the home is yours. Whether you reaffirm your home loan or not.


After you file bankruptcy, you will have to make a choice to reaffirm your mortgage or not to reaffirm. Some homeowners will elect not to do this because they plan to walk away from their homes and do not want the personal liability hanging over their heads. While others who want to stay in their homes with the benefits of good credit will most likely decide to reaffirm their mortgage.
What Happens If You Do Not Reaffirm Your Mortgage in Bankruptcy? | LoanSafe.org

nicely stated Evan. becarful out there...lots of scamers.

[Evan Bedard]

Thank you Angel and you are right on about the bankruptcy, thanks so much for paying it forward and sharing your knowledge with others here in the forum:-)