How to keep a foreclosure off of my credit report after bankruptcy?

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How to keep a foreclosure off of my credit report after bankruptcy?

My wife and I file bankruptcy 2 years ago. Both mortgages were included in the bankruptcy and we never reaffirmed the loans. My wife has since lost her job and we are about 50K upside down in the house. I have repaired most of my credit (she has not). If I quit claim the house to her, will this keep a foreclosure from appearing on the public record section of my credit report and could I buy another house?

Asked on December 13, 2010 under Real Estate Law, Minnesota

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Something does not sound right here.  I think that you need to seek help from an attorney in your area who can look at the discharge and see what happened.  If you never reaffirmed the mortgages and they were included then the debt was discharged.  You kept paying to avoid  foreclosure and the appearance on your credit report?  And now you have to deal with another blow to your personal economy.  Quit claiming the deed transfers the title to the property but it does not transfer the liability for the mortgage.  Only refinancing the mortgage out of your name would do that.  So that will not help you here.  Have you tried modification of your mortgage?  If you think that foreclosure is inevitable how about  a short sale or a deed in lieu of foreclosure?  You just have to make sure that the bank waives your deficiency.  Seek help.  Good luck.


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