PHH Mortgage follows the current guidelines from the Consumer Data Industry Association (CDIA) for all bankruptcy filings. The status of the loan at the time of reporting will be furnished monthly along with the current chapter filed. Typically, a bankruptcy filing can reflect on a credit report for 7 to 10 years.
READ MOREPer CDIA requirements, there will be no credit reporting upon discharge of a chapter 7 bankruptcy if the debt is not reaffirmed. This is because the discharge removes the personal liability for the underlying debt amount. For secured loans discharged through chapter 12 or 13 bankruptcy cases, credit reporting stops if the collateral was surrendered or the lien was avoided.
READ MOREAfter the bankruptcy is discharged, we will resume sending statements. However, we will not send statements if the lien was avoided or the property was surrendered in the bankruptcy.
READ MOREThere is no personal liability for the debt owed; however, a chapter 7 discharge does not eliminate the lien of the mortgage or deed of trust (also known as security instruments). This means that creditors still maintain an interest in the property and can take action to protect that interest.
READ MOREYes. We encourage you to ask for assistance if necessary. While it is possible that the bankruptcy discharge eliminated the personal obligation to repay the debt, the lien of the security instrument remains on the property.
READ MOREYes. All of the above information regarding discharge and the lien status applies to both first and second mortgage accounts.
READ MOREAn Adjustable-Rate Mortgage (ARM) is a loan with a fixed interest rate for an introductory period and then changes at regular intervals according to the index listed in the Note. ARMs are also known as a Variable-Rate Mortgage.
READ MOREAfter the introductory period, the new interest rate is calculated based on the terms outlined in the Note.
READ MOREA recast occurs when a large lump sum payment is made towards the principal balance and a request is made to recalculate the monthly payment based on the new lower balance. The interest rate and loan term remain unchanged. Recasts are subject to eligibility and a fee may apply.
READ MOREA buydown mortgage is a way to lower the mortgage interest rate for a set period of time. This can be done by paying an upfront fee, known as discount points, or by having the seller or lender pay for a temporary buydown.
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