[ChrisHinton]

I filed Chapter 7 about a year and a half ago. BK was discharged, the house was as well. However, still living in the same house I have continued to pay the mortgage all the way through. The bank is not reporting any of the payments because they said that the debt was discharged.

My question is this - if I walk away from the house and the bank forecloses, is that going to show up on my credit as well? And if yes, why since they aren't reporting any payments because the debt was discharged. Shouldn't that work both ways?

[JudyKayTee]

Yes, it will show on your credit report as does the bankruptcy filing.

I'm confused - you think your mortgage was discharged by the bankruptcy, you continue to live there and you shouldn't have to make any payments? I don't know why the bank would discharge the mortgage when it's a secured debt.

Contact the credit report agency and tell them whatever it is that you feel is being done illegally.

Shouldn't what work both ways? You got out from under debt. What are they doing that financially hurts you?

[ChrisHinton]

I'm wondering why, if payments aren't recorded then why a foreclosure would be. I am making payments.

[JudyKayTee]

So the mortgage was not discharged, you are making payments, it's in foreclosure?

[ChrisHinton]

Mortgage was discharged. I am still living in it and making payments. My question is hypothetical as in "If I walked away and the bank eventually forecloses (which they will of course), does that foreclosure show up on my credit even though the debt/mortgage has already been discharged.

[JudyKayTee]

Yes, of course a foreclosure will appear on your credit report.

[ChrisHinton]

So that's the part I don't understand. Why, if payments or late payments are not reported because the debt is discharged, why does the foreclosure? The foreclosure is against the same debt.