Expert: Terry Leeders - 2/21/2011

Question
Hi.My husband filed a bankruptcy back in 2009.He did not reaffirm the house after filing.We discovered that they are not reporting on his credit report.The house has a lot of problems and we just want out.If we choose to give the house back to bank can they sue us or report negative or foreclosure on his credit report since they do not report positive?We eventually want to purchase another home.

Answer
if he did not reaffirm, then there is nothing to report on the credit report. He can turn the house back over to the bank and not owe anything else on the mortgage. They will foreclose, and that fact can be reported on his credit report as a factual event (since it has to go thru court).