My first reaction is for you to consult with your bankruptcy attorney before opening any negotiations with the bank holding your mortgage.
If your attorney approves of your doing so, you have no reason not to open a negotiation with your bank regarding a short sale or deed in lieu of foreclosure. Both of these options are less expensive than a foreclosure for your bank, and are much, much less damaging to your credit score.
Regarding your credit report question, credit reports are imperfect snapshots of a consumer's history 60 to 90 days in the past. Any changes to your Chapter 13 status will appear in a month or two at the earliest. How the creditor will report the change in status is anyone's guess, and I doubt any creditor handles this type of situation consistently. See the Bills.com credit resources page to learn more about credit reports.
Foreclosure is a serious situation that has serious repercussions. If you can, you want to avoid a foreclosure as much at all costs. Bills.com is here to help. We also offer helpful guides, foreclosure FAQs, glossary terms, and other helpful tools to help you keep your home and avoid a bank repossession.
You can find more in depth information about foreclosures on our Bills.com foreclosure page on our foreclosure information page.
I hope this information helps you Find. Learn & Save.