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How do we buy a home after BK

The last post in this topic was posted 3222 days ago. 

 

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I recently lost my job and we are unable to pay our mortgage right now. We just owe this month but we having been thinking about moving to a different part of the state and starting a new life. The job loss kinda just moved up up our plans.

 

We live in MA and had a BK discharged in 6/09. We didn't reaffirm the mortgage.

 

I know that I would need a job in order to purcahse a home but we wonder where we stand right now with being able to get a mortgage for a new home.

 

We got our credit reports and scores and my scores run in the 620-650 and my wifes are a little better about 630-660.

 

What type of options do we have??

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I recently lost my job and we are unable to pay our mortgage right now. We just owe this month but we having been thinking about moving to a different part of the state and starting a new life. The job loss kinda just moved up up our plans.

 

We live in MA and had a BK discharged in 6/09. We didn't reaffirm the mortgage.

 

I know that I would need a job in order to purcahse a home but we wonder where we stand right now with being able to get a mortgage for a new home.

 

We got our credit reports and scores and my scores run in the 620-650 and my wifes are a little better about 630-660.

 

What type of options do we have??

Hummm - always tricky when it comes to responsibility after a BK where the home was included - typically if you continue to make payments (reaffirmed or not) the mortgage is still viewed as your responsibility in the eyes of a new lender considering you for a mortgage - in this case not reaffirming likely will not matter - as soon as you go 30 days late you will be waiting 12 months to be eligible - if you walk from the home then it will start the clock for a foreclosure which is 3 years - I am afraid you are not going to be able to buy if you do not make the payment and sell the home - had you handed the keys back to the bank at the time of the Bk you would have started the clock 3 years ago and been eligible in June - someone will correct me if I am wrong but I believe this is where you are at this point

 

B

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I am pretty sure what my BK lawyer told me is that the foreclosure will not show up on a credit report because the mortgage was included in the BK.

 

We also had a second mortgage and while waiting for the first to go through modifaction the bank sold the loan to another and within a few weeks they charged off the loan. We have not paid that in the last year and a half. And on my credit report it show that the loan was included in BK with 0 for a balance and that we were never late.

 

So I don't think that regualr foreclosure policies work in my case because of the BK

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I am pretty sure what my BK lawyer told me is that the foreclosure will not show up on a credit report because the mortgage was included in the BK.

 

We also had a second mortgage and while waiting for the first to go through modifaction the bank sold the loan to another and within a few weeks they charged off the loan. We have not paid that in the last year and a half. And on my credit report it show that the loan was included in BK with 0 for a balance and that we were never late.

 

So I don't think that regualr foreclosure policies work in my case because of the BK

How do you explain where you have been living and show 12 months of rent/payment on time? It may not show up on a credit report but that doesnt mean an underwriter isnt going to find out.

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So maybe it would be better if we just sold our home maybe in a short sale or something. I don't think that there is any equity in the home.

 

Never thought about our payments showing up as being paid on time. So now what do we do.

 

I am unemployed and have a good job prospect right now just waiting to here from them

 

I talked to my lawyer and he said that we should be able to get a FHA loan and that the foreclosure shouldn't show up on credit report but you are telling me something different. Now I dont know who to believe. He even told me a story of someone who was going through foreclosure with a BK he was saving his money for a new home and applied for a FHA loan and was approved while he was going through foreclosure.

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So maybe it would be better if we just sold our home maybe in a short sale or something. I don't think that there is any equity in the home.

 

Never thought about our payments showing up as being paid on time. So now what do we do.

 

I am unemployed and have a good job prospect right now just waiting to here from them

 

I talked to my lawyer and he said that we should be able to get a FHA loan and that the foreclosure shouldn't show up on credit report but you are telling me something different. Now I dont know who to believe. He even told me a story of someone who was going through foreclosure with a BK he was saving his money for a new home and applied for a FHA loan and was approved while he was going through foreclosure.

I would find out who they used (lawyers client that got loan) and ask them how they did it - there are questions on the application that will unearth this - in a lenders eyes including the home in a BK does not allow you to continue living there indefinitely without regard to obligation. BK Laws and mortgage guidelines are not the same thing - Ask a few lenders and see what they say but I am confident of how this would be handled through my bank - Given the situation taking the job is key but housing may not be as simple as you had hoped -

 

Good Luck

B

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Thanks for your help I think I will contact my mortgage company and see what they can do for me.

 

I know that I have an obligation to my mortgage and I have all intentions to pay but losing my job right now sure isn't helping the situation.

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I recently lost my job and we are unable to pay our mortgage right now. We just owe this month but we having been thinking about moving to a different part of the state and starting a new life. The job loss kinda just moved up up our plans.

 

We live in MA and had a BK discharged in 6/09. We didn't reaffirm the mortgage.

 

I know that I would need a job in order to purcahse a home but we wonder where we stand right now with being able to get a mortgage for a new home.

 

We got our credit reports and scores and my scores run in the 620-650 and my wifes are a little better about 630-660.

 

What type of options do we have??

Hummm - always tricky when it comes to responsibility after a BK where the home was included - typically if you continue to make payments (reaffirmed or not) the mortgage is still viewed as your responsibility in the eyes of a new lender considering you for a mortgage - in this case not reaffirming likely will not matter - as soon as you go 30 days late you will be waiting 12 months to be eligible - if you walk from the home then it will start the clock for a foreclosure which is 3 years - I am afraid you are not going to be able to buy if you do not make the payment and sell the home - had you handed the keys back to the bank at the time of the Bk you would have started the clock 3 years ago and been eligible in June - someone will correct me if I am wrong but I believe this is where you are at this point

 

B

How about...

 

1. Payments are on time for prior 12 months. 2. Short sell the home (due to BK there is no deficiency). 3. Apply for FHA mortgage.

 

Is that possible? Is UW likely to excuse short sale?

Edited by melikey

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The only obligation you have on your mortgage is to either pay the payments, or give back the house without a fight. It always tickles me when some people think its wrong to walk away from a house, as if the bank/investors investment in the house is supposed to be risk-free for them. They did not give you a mortgage out of kindness, they wanted to make a ton of money off your interest payments. In other words, if you give back the house, you will certainly lose lose a good bit of money, so whats wrong with asking the other investors(bank etc) to take their share of the loss?

 

Ive invested in company stocks, and the stock will lose a lot of value. I dont expect the company I invested in to give me back any of the money. The people who gave you the mortgage were investors, just like a stock investor- their aim was to make money on you. If they can make a profit, they can take a loss.

 

The hard part is getting another mortgage for a while after walking away, but renting is rather stress free.

 

 

 

 

I recently lost my job and we are unable to pay our mortgage right now. We just owe this month but we having been thinking about moving to a different part of the state and starting a new life. The job loss kinda just moved up up our plans.

 

We live in MA and had a BK discharged in 6/09. We didn't reaffirm the mortgage.

 

I know that I would need a job in order to purcahse a home but we wonder where we stand right now with being able to get a mortgage for a new home.

 

We got our credit reports and scores and my scores run in the 620-650 and my wifes are a little better about 630-660.

 

What type of options do we have??

Hummm - always tricky when it comes to responsibility after a BK where the home was included - typically if you continue to make payments (reaffirmed or not) the mortgage is still viewed as your responsibility in the eyes of a new lender considering you for a mortgage - in this case not reaffirming likely will not matter - as soon as you go 30 days late you will be waiting 12 months to be eligible - if you walk from the home then it will start the clock for a foreclosure which is 3 years - I am afraid you are not going to be able to buy if you do not make the payment and sell the home - had you handed the keys back to the bank at the time of the Bk you would have started the clock 3 years ago and been eligible in June - someone will correct me if I am wrong but I believe this is where you are at this point

 

B

How about...

 

1. Payments are on time for prior 12 months. 2. Short sell the home (due to BK there is no deficiency). 3. Apply for FHA mortgage.

 

Is that possible? Is UW likely to excuse short sale?

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The only obligation you have on your mortgage is to either pay the payments, or give back the house without a fight. It always tickles me when some people think its wrong to walk away from a house, as if the bank/investors investment in the house is supposed to be risk-free for them. They did not give you a mortgage out of kindness, they wanted to make a ton of money off your interest payments. In other words, if you give back the house, you will certainly lose lose a good bit of money, so whats wrong with asking the other investors(bank etc) to take their share of the loss?

 

Ive invested in company stocks, and the stock will lose a lot of value. I dont expect the company I invested in to give me back any of the money. The people who gave you the mortgage were investors, just like a stock investor- their aim was to make money on you. If they can make a profit, they can take a loss.

 

The hard part is getting another mortgage for a while after walking away, but renting is rather stress free.

 

 

 

Wow... Great way to put it!

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

Same scenario with short sale?

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

Same scenario with short sale?

 

 

I was told yes if there was a Notice of Default filed. Might be different if there were no lates or NOD filed during the short sale but I'll leave this one up to the mortgage vets.

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

Same scenario with short sale?

If you were late on payments at the time of the short sale yes -

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The BK did absolve you from the responsiblity of the loan. It did not absolve you from the responsiblity of the house. The issue is you have to go through the legal process to get the house out of your name which is the foreclosure process. If it goes through a court foreclosure then you will have court records of the foreclosure and that will be on your credit report in the court section. No more information will show in the loan section.

 

Tammy

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

Same scenario with short sale?

If you were late on payments at the time of the short sale yes -

Hi Brian...

 

If payments are/were not late, short sale wouldn't be a problem for FHA AND underwriter at new lender? If so if OP is not 30 days late, and hasn't been for at least 12 months, he could conceivable walk away from this home and purchase another? Or would short sale be considered a default in the eyes of new lender and FHA... Therefore clock starts upon short sale?

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Brian is right on this one. Regardless of the BK, you did default on a mortgage, which is a question on the loan app. It doesn't matter that it doesn't show on your credit report, you are subject to the 3 year wait from the time the home was turned back to the bank. If title hasn't changed hands yet (because you've just stopping paying), then your clock hasn't even started yet.

 

This is not a question your lawyer can answer, because it doesn't concern law. This is a mortgage/bank guidelines question, which a lawyer isn't likely to have current information. They change so often, most mortgage professionals can barely keep up! :)

Same scenario with short sale?

If you were late on payments at the time of the short sale yes -

Hi Brian...

 

If payments are/were not late, short sale wouldn't be a problem for FHA AND underwriter at new lender? If so if OP is not 30 days late, and hasn't been for at least 12 months, he could conceivable walk away from this home and purchase another? Or would short sale be considered a default in the eyes of new lender and FHA... Therefore clock starts upon short sale?

In theory I am pretty sure - however most banks have an overlay to the guidelines on this and i do not know of any (I hear they are out there) that will do this - per fha as long as there is no money owed as a result of the short sale and they were not late they could short sale and then purchase - ( if I am wrong on this someone will correct me)

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So your even saying that if I even short sale and I am late on payments then it would be difficult for me to get a FHA loan?

 

I talked to citimortgage this morning and they have some assistant programs that we may be able to qualify for right now with our current mortgage. But I will probably end up being 30 days over because I haven't gotten any unemploymnet yet (its been about 4-5wks) and my wife was given a mutual fund that her father had started for her when she was born but now there is a problem with the bk because it could be considered that she was hiding an asset but she never knew about it. So right now its just a waiting game with everything. I was wondering what would lenders do about being late on mortgage payment but it was due to a job loss. We have been paying the mortgage on time since the bk and the modifacation.

 

But my problem right now is that we had a second mortgage and it was bought by the first tennessee bank and they ended up charging it off or something and they said that they could foreclose anytime they want and they also put a lien on the house. But now I have checked my credit report and they have reported that the loan has a zero balance and that we were never late. But I don't see any liens on the report or anything. What could this mean?? Citimortgage also told me today that they had taken my mortgage out of the bk dept and put back into regular accts. I didn't know that they do this I always thought it stayed with the BK dept.

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So your even saying that if I even short sale and I am late on payments then it would be difficult for me to get a FHA loan?

 

I talked to citimortgage this morning and they have some assistant programs that we may be able to qualify for right now with our current mortgage. But I will probably end up being 30 days over because I haven't gotten any unemploymnet yet (its been about 4-5wks) and my wife was given a mutual fund that her father had started for her when she was born but now there is a problem with the bk because it could be considered that she was hiding an asset but she never knew about it. So right now its just a waiting game with everything. I was wondering what would lenders do about being late on mortgage payment but it was due to a job loss. We have been paying the mortgage on time since the bk and the modifacation.

 

But my problem right now is that we had a second mortgage and it was bought by the first tennessee bank and they ended up charging it off or something and they said that they could foreclose anytime they want and they also put a lien on the house. But now I have checked my credit report and they have reported that the loan has a zero balance and that we were never late. But I don't see any liens on the report or anything. What could this mean?? Citimortgage also told me today that they had taken my mortgage out of the bk dept and put back into regular accts. I didn't know that they do this I always thought it stayed with the BK dept.

 

Yes it would be an issue -

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I recently lost my job and we are unable to pay our mortgage right now. We just owe this month but we having been thinking about moving to a different part of the state and starting a new life. The job loss kinda just moved up up our plans.

 

We live in MA and had a BK discharged in 6/09. We didn't reaffirm the mortgage.

 

I know that I would need a job in order to purcahse a home but we wonder where we stand right now with being able to get a mortgage for a new home.

 

We got our credit reports and scores and my scores run in the 620-650 and my wifes are a little better about 630-660.

 

What type of options do we have??

Hummm - always tricky when it comes to responsibility after a BK where the home was included - typically if you continue to make payments (reaffirmed or not) the mortgage is still viewed as your responsibility in the eyes of a new lender considering you for a mortgage - in this case not reaffirming likely will not matter - as soon as you go 30 days late you will be waiting 12 months to be eligible - if you walk from the home then it will start the clock for a foreclosure which is 3 years - I am afraid you are not going to be able to buy if you do not make the payment and sell the home - had you handed the keys back to the bank at the time of the Bk you would have started the clock 3 years ago and been eligible in June - someone will correct me if I am wrong but I believe this is where you are at this point

 

B

 

Brian, if OP had started the clock to be eligible in June 2012, when would they be eligible to be prequalified for an FHA loan? A month prior or a month later?

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