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PHorvy

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I have a question about how a mortgage that was not reaffirmed can impact my credit.
I had a bankruptcy discharged in February 2013. I had a mortgage on an investment property that was NOT reaffirmed in that bankruptcy, but I kept paying the mortgage. Due to the high cost of repairs I have been putting into the building, I can no longer afford to keep the building and unfortunately have to let it go. It is still not worth what is owed on it and I will either need to do a short sale, a deed-in lieu of foreclosure or a foreclosure. Since the mortgage was not reaffirmed, what impact, if any, will these options have on my credit score?

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I'm not an expect, I suggestion you discuss this with your bankruptcy attorney.   Reaffirming a mortgage which was included in a bankruptcy means you actually renew the loan.   You would get to retain the property and continue with your mortgage payments.    As the loan was not reaffirmed, there was never an agreement.  You MAY have the ability to walk away from the properly and let the mortgage company take care of it.  I do not believe it can be reported on your credit report as it was included in the original bankruptcy.   There may be laws in your state which state if you make payments it could be considered the same as a reaffirmation.  I would definately discuss this with your original bankruptcy attorney so that you can consider your true options.

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