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Next Steps. FHA possible. Sheriff's sale 3+ years after judgment

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Hello all! :wave: I'm hoping someone can help give me a little hope or at least provide some clarification. Like many people, my husband and I went through significant financial ups and downs beginning January 2009. He works in the commercial construction industry and lost his position 3 times over the course of 5 years. Each time he eventually regained employment, but took a cut in pay (up to 25%-30%). In November 2009, we signed a loan modification with BofA and agreed to an increased payment. Stupid on our part because we were already upside down on the house. :blush2: My husband was just struggling so much emotionally and he felt like if we could keep the house we should. By October 2010 we filed a BK13 because we could tell that his company was getting ready to close divisions and we wanted to protect our secured assets. (The house was included in the BK13). In January 2011, he was unemployed for a longer period of time (5 months) and we defaulted on our mortgage payments. We tried for another loan modification with a principal reduction without success. In June 2012, our attorney contacted their attorney and said we were vacating the property. We moved out for 18 months and then moved back because it sat empty and we felt a responsibility to our neighborhood to maintain the property and keep the utilities turned on. (We lived within an HOA, but lawn/snow maintenance was not provided. The bank never proceeded with the Sheriff's Sale -- as a matter of fact BofA sold the loan to Green tree during that period of time. We received a foreclosure judgment in August of 2013, but we decided to move back to our home in November 2013 and pursued a loan modification for the last time, (this stalled the foreclosure) but my husband lost his job again in January 2014 and became reemployed in late-April 2014. On this date, we were approaching the end of our 5 1/2 year BK plan and decided to discontinue pursuing a loan modification and asked the bank (begged them) to move forward with the foreclosure. Nothing happened. Our BK13 was discharged in March 2016. We have since acquired two car loans and three credit card lines. I pay extra on the car loan with the higher interest rate and pay the CCs in full each month. Our DTI is about 5% and In February 2017 we will have reached the one year discharge date.

 

Sorry for the long story, but I wanted to give some background on our situation. My question is this. Can we qualify for an FHA loan, now? I'm not sure when the clock starts ticking on the foreclosure? Is it the date of judgment or the date of sale? Also, given the convoluted circumstances of our situation, is it possible to qualify with manual underwriting? I've maintained my job for 9 years and my husband's position is the most secure it's ever been and we feel like we've turned the corner. He actually was offered employee-ownership two years ago, so that's a good sign.

 

The sale is scheduled this month and I'm terrified of our future. We've worked so hard post-BK to rebuild our credit and our FICO scores are in the high 680+, currently. We have a little money in the bank, but I also don't want to deplete our cash reserves. Bottom line is that we would prefer buying a house, if possible. Rentals are slim pickings this time of year and I'm concerned landlords may think we are too risky, because of the BK and foreclosure. Plus, I have a 90+lb dog that is often a deterrent for landlords. Ugh.

 

Any thoughts or guidance would be appreciated. (Also, the foreclosure judgment from 2013 has never appeared on our credit reports. I'm curious as to why. Is it possible we may have dodged a bullet?) Thanks for any help you can give!

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what's the house going to sell for at the sheriffs sale?

 

what's the current appraisal ?

 

what's your state law on deficiency balances on primary residences ? ( some states don't allow it )

 

 

https://www.mprnews.org/story/2010/12/12/foreclosure-options

 

http://www.lawhelpmn.org/files/1765CC5E-1EC9-4FC4-65EC-957272D8A04E/attachments/FB550416-F959-41B4-81DA-B2F7B42C4E1E/c-12-your-rights-in-foreclosure.pdf

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OP said the home was included in the 13. There will be no "deficiency balance".

I don't think chapter 13s take away the liability like chap 7s do.

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Hello all! Sorry for being late back to the game. Krielly66 is correct. There isn't a deficiency balance. The house actually sells today. Part of me is sad and the other part is soooo ready to move forward.

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