Is the lender, BOA, legally allowed to report anything other than what was originally reported when the debt was included in our chapter 7? 5 Answers as of April 13, 2016

My chapter 7 was discharged in February 2012 and my mortgage was not reaffirmed. In July 2015, I decided to no longer continue to make the payments on my upside down mortgage. BOA has not reported any negative marks on my credit since the debt was discharged and not reaffirmed. It shows on my credit report as "Discharged, Included in Bankruptcy", and $0 balance, but not closed. I'm considering pursuing a Foreclosure or Short Sale offer from BOA, and I'm curious of how this will affect my credit and ability to purchase a home? My understanding is that the creditor cannot post any negative remarks after the debt has been discharged. Would this allow a new mortgage company to go off the discharge date of February 2012 and process a new mortgage for us since it has been over 4 years post discharge?

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Very likely. Your credit score should not have fallen on account of not paying a discharged debt. There is no 4-year rule written in stone. It may be worth it for you to begin applying for credit, or at least discussing it with a bank or other lender.
Answer Applies to: Wisconsin
Replied: 4/13/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
BOA is correctly reporting the status of the debt. It should remain that way if there is a foreclosure or short sale. Why would you bother with a short sale? Only the realtor makes money on the deal. On the other hand you can stay there and save money while the bank forecloses.
Answer Applies to: California
Replied: 4/11/2016
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
If B of A has not foreclosed yet, it means you are still the titled owner to the property. Although the debt has been discharged, B of A needs to obtain title of the property, either by a foreclosure, short sale or a Deed in Lieu Of Foreclosure. Any of these are an additional credit event which could be reported to the credit bureau. The most likely one to be reported would be if they had to complete a foreclosure. Your best alternative is a short sale or a Deed in Lieu of Foreclosure as there is the possibility these would not be reported by B of A. You may also request that, as part of the short sale transaction, no report be made to the credit bureau.
Answer Applies to: California
Replied: 4/11/2016
Ronald K. Nims LLC | Ronald K. Nims
Creditors aren't allowed to take action to collect a debt after bankruptcy. Most lenders interpret that as prohibiting negative reporting to the credit reporting agencies, so lenders interpret that as prohibiting any reporting to the credit reporting agencies. Any prospective lender will be looking at the same information from the credit reporting agency that you're seeing.
Answer Applies to: Ohio
Replied: 4/11/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Like many people facing the issue, you are missing the point. There are no secrets, even though the bankruptcy discharge may prevent BOA from reporting even one thing about this loan. Foreclosures are public record, and every potential real estate lender can find out about it if you apply for new credit. What you see on your consumer report is only a small part of what an lending industry insider will see when considering lending to you. And any new lender will ask before verifying from independent sources. A short sale would make obtaining new mortgage credit easier than a foreclosure, but both will make your credit worthiness difficult.
Answer Applies to: Nevada
Replied: 4/11/2016
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