Does filing chapter 7 bankruptcy hide a foreclosure on my credit report?
Question:
Answer:
Yes you are.
The only thing that a bankruptcy changes is how accounts are listed on your credit bureau. They should read "Included in bankruptcy". But they will still show for 7-years.
Nothing is hidden from your credit report. Being in bankruptcy doesn't mean that you are magically no longer responsible for you debts. As long as you have assets, these are realised to pay off what is possible. Mostly not the whole amount, just a percentage and that is why so many people lose out to people who become bankrupt or take voluntary liquidation to try and evade their responsibilities. Obviously, sometimes it is inevitable and a bankruptcy order will be taken against you by a creditor.
Nope. They are two separate events. Foreclosures and Bankruptcies are considered financial "lifetime events"
Some lenders have additional guidelines for folks that have one "lifetime event", but if you have two, even if you meet the seasoning guidelines for them individually, two will get you disqualified faster.
Example: I underwrote a loan that had seasoning requirement of >5 years since the last foreclosure. The borrower, had 9 properties that were foreclosed on >5 years ago. However, upon reviewing their credit report, I discovered that they had purchased 4 properties within the last 6 months...I denied the loan b/c of the "mulitple life events"...b/c it looked like this guy was headed in the same direction again.
No, the foreclosure won't be hidden, but it won't ruin your life... Keep your future credit history clean, as soon as you can, get a small credit card that you can PAY OFF each month (only use it a little) and it will help you to start building good credit again. Within a few years, you will be able to get another mortgage, but you may have to jump through some hoops and pay a higher interest rate to do it...
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