Will the foreclosure show up on my credit report? 10 Answers as of January 10, 2013My mother and I are co owners of a home that we haven’t lived in for years only my sister and children live there. I have to file chapter 7. I know after I’m discharged my name will still remain on the home. The payments are on time, but in the event something happens to , and payments can't be made. The bank would then do a foreclosure. Although, I’m discharge from any debts from the house except HOA fees, taxes... Will the foreclosure show up on my credit report? In other words, five years from now I’ve been discharged from bankruptcy, my credit score is getting better. But, now there are foreclosure proceedings. Will this start the time clock of 7 years again?
Granger Law Firm | Katharine Granger
It is possible that the foreclosure will show up on your credit report even after having filed. The bankruptcy protects you from collection of the debt, but does not guarantee that the foreclosure judgment will not be reported. I would suggest having the co-signer try and refinance in their name only if possible.
Answer Applies to: Ohio
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
A foreclosure is always a negative on your credit report and I agree it would be painful if you spend five years post-bankruptcy rebuilding your credit only to see the score fall back. Why do you think a Chapter 7 will release you from the mortgage debt? Generally it does not. You are released from the personal liability on the loan, but the house is not released from the mortgage. So payments must be made if you want to keep ownership. It may be that your bankruptcy lawyer has not fully explained the ins and outs. Ask him or her to do so.
Answer Applies to: Wisconsin