Getting a mortgage POST Bankruptcy (with a Foreclosure)

[SadDebbie]

Hello, I filed for BK in 09/2007 and my BK was discharged in 10/2008.

I let a house go in my bankruptcy therefore it was foreclosed on. How long do I need to wait to obtain a new mortgage? How much $$ down are lenders going to require me to put down? Also, I actually had 2 houses in my bankruptcy but only 1 was foreclosed on. I continued to pay on the other and I am still living in that house. If I walk away from this house (I never signed a re-affirmation agreement) would this start the clock all over again if they foreclose on this house as well? I know my BK 7 relieved me of the responsibilities of paying on this house even though I have been paying on it and living in it. I look forward to your insight.

Thank you.

[mommyof2monkeys]

Yes it will start the clock over again.

 

When was the foreclosure of the first?

 

Tammy

[p11]

In an older thread you mentioned that your spouse was also on the deed and mortgage for this house. Is that still the case. It could be an important factor in your decision whether or not to walk.

[SadDebbie]

Foreclosure of the first? not exactly sure but my BK discharge happened in 10/2008...I think the foreclosure happened shortly after that.

 

What if I do a died in lieu of foreclosure on the second property?

 

How will that affect me getting a mortgage? Will a deed in lieu of foreclosure still warrant a 3 year wait?

[SadDebbie]

In an older thread you mentioned that your spouse was also on the deed and mortgage for this house. Is that still the case. It could be an important factor in your decision whether or not to walk.

 

Yes my spouse is on the deed and mortgage of this house.

[radi8]

I continued to pay on the other and I am still living in that house. If I walk away from this house (I never signed a re-affirmation agreement) would this start the clock all over again if they foreclose on this house as well?

 

Yep, it'll start over again. IIRC a Deed in lieu is similar to a foreclosure for these purposes.

 

IIRC you filed BK but your spouse did not. You can walk away from the mortgage, but your spouse probably cannot if they are a co-borrower on the mortgage.

The exception is if you live in a community property state where your spouse's assets and income are considered to be equally belonging to you. In that circumstance your BK discharge offers some protection to your spouse. I'd surely ask an att'y before relying on that protection though.

 

What are the chances you could sell the house? Any possibility?

[jop3]

Selling (even short selling) would be a better option. If you let this house go after the bankruptcy, you're going to show a foreclosure AFTER a bankruptcy and many lenders aren't going to touch that until the bankruptcy falls off your credit altogether. I don't think foreclosure after a bankruptcy is actually a written guideline, but every underwriter I know won't touch a file like that.