Yes, that is the case. If you file for bankruptcy without including the mortgage, you must still file a reaffirmation with the mortgage company within 30 days of the bankruptcy discharge.
If you fail to do so, the mortgage company will report that your mortgage has been discharged to the credit bureaus. However, they will not reveal this to you. Instead, you will continue making mortgage payments, which they will gladly accept.
You won't discover that they have not been reporting your excellent payment history to the credit bureaus until years later. Then, when a new mortgage or car loan requires a credit check, you may not comprehend why your credit score remains low.
Sure, the bankruptcy lowers the score, but over time and by making payments on time, you may believe your score should rise.
Do not anticipate the mortgage company to inform you of their actions. Since they will not. In fact, I would wager money and easily win that there are currently a large number of individuals who are unaware that their excellent mortgage payment history is not being recorded because they did not reaffirm it with their mortgage company.
Do you believe it is equitable to continue paying a mortgage even though it is not reported as being paid each month? This is currently occurring, so it is possible.
How can you prevent this from happening? By being informed. You are responsible for managing your credit and learning what things are and how to comprehend them. Start by obtaining reports and scores from all three credit bureaus.
" - https://www.affordablecebu.com/
