Bankruptcy and foreclosure??

[needingsomehelp]

Hi everyone,

We are converting to a Chapter 7 after 4 months in a Chapter 13. We simply can not keep up with our adjustable rate mortgage, and the payments have just gone up again, so in turn we are letting our home go.
I saw this question a couple of days ago, but did not see an answer for it, so if anyone could help I would really appreciate it.

When letting go of a home in a BK 7, does that count as foreclosure as well as a bankruptcy, or would it just count as included in bankruptcy?
Also, how long would it be before we could get another mortgage? I have read 2 years for BK yet 3 years for foreclosure?

My parents have a piece of land that they are going to let us build on, so I was just wondering how long it would be before we could do that.

Last thing, does anyone have any advice on actually getting a place to rent? Obviously our credit is shot right now, so I am just not sure how to get someplace nice to live.
Thanks so much for all answers, I really appreciate all of your help!

[BassBoy]

The loan should be reported as Included in Bankruptcy when you convert and let the home go into foreclosure.

2 years before buying a home is pretty much the standard timeframe, but with all wounds such as foreclosure and bankruptcy, you're best bet is too let time heal those wounds. You'll benefit better in the end.

With renting (i.e., apartments, condos or single family homes), you may want to call around to these places and inquire about what their criteria is for someone in your situation. In my experience, it was easier to work with private home owners. They may be a little more understanding of your situation and possibly may have been through what you're going through.

With apartments, you may be qualified, but you may have to cough up a lot money up front, like 2 or 3 months rent and/or larger security deposit. In my experience where we were looking, some apartments wanted us to be discharged but may have wanted a larger deposit, others were 1 year post-discharge and a few were 2 years post-discharge. It all depends on the management company.

Good Luck to you!

[kl030505]

Bassboy said everything very well. We are in the process of searching for apartments right now and it's been very stressful for me. We couldn't secure anything before we filed because our scores were actually quite a bit lower then and we wouldn't have qualified for anything. Now, the scores are not great, but not as horrible, but with the bk, few people have wanted to touch us. We used the time in the house to save save save and we hopefully will have an answer tomorrow morning as to whether or not we got the place we wanted. I wrote a letter explaining what concessions we were able to make to offset the bk as well as establishing our current employment and a small paragraph on how we got into the bk and how it was a momentary blip. We are offering 3 months worth of rent as a security deposit and paying first month's rent all up front, which I think is ultimately what made the landlord willing to consider us. COming up with that much cash at once has to look decent. I recommend staying in the house as long as possible without payments so that you can save up to do something similar. The rental market around here is brutal. The only places willing to work with us without huge financial concessions were dumps in skeevy parts of town. I'm not willing to do that so I'm forking over a huge sum of $ up front. But, to be in a nice, comfortable place to live for the next several years while we get back on our feet to buy a house means a lot to me. I hate moving.

I expect we will be waiting 5 years to own a home again - I want at least a 10% downpayment and I want to get into our "forever" home - no more starters for us! It's going to take me a long time to save up that much in cash.

[deafbroke]

Check with homes for rent. We wil lbe renting a home with option to buy. Owner knows we're in the process of a chapter 7 bankruptcy and didn't mind. She's a real estate broker. We will be letting our current home go, and surrendering a 2nd property. We origionally listed both properties as wanting to affirm them but we will ammend the paperwork and let them both go.
By the way, we are also using our tax return to pay for deposit and rent on the home we will be moving into. Will that be challenged by the trustee knowing we will be losing our house and needing to find another place to live?