buying house after chap 7

[freshstart10]

if i surrender my house after chapter 7. do i have to wait 3 years to apply for fha home loan or would it be 2 years?

i guess im wondering does surrendering the house in chap 7 count as a bankruptcy or foreclosure when you apply for a fha loan?

[Tbornetun]

They are looked at same or similar. I beleive it is only 2 years now.

[fltoo]

If your lender is selling to the secondary market, Fannie Mae, their new guidelines for getting a loan are now 5-7 years after a foreclosure. I think deed in lieu is 4 years.

Check out the Fannie Mae site for new guidelines as of August 2008.

[Flamingo]

if i surrender my house after chapter 7. do i have to wait 3 years to apply for fha home loan or would it be 2 years?

i guess im wondering does surrendering the house in chap 7 count as a bankruptcy or foreclosure when you apply for a fha loan?

This economy is going to change everything credit-wise and mortgage-wise. What was done in the past will probably be all changed and things become more strict as to lending practices. You will just have to see several years down the road if you will be able to obtain a mortgage at that time.

[freshstart10]

fha, should still stay 2-3 years though right? cause all the people who got screwed in bad mortgages or falling values are all going to need to buy a house again in a few years?

[B65]

question

if a foreclosure is going to be 5-7 years until you can get another mortgage, what will it be for someone who has a chapter 7... the same?
if is is less then It may be better for me to try and sell my house rather than foreclose.. but if it is the same 5-7 years with a chapter 7 then I may as well foreclose... anyone know?
B

[freshstart10]

thats what i want to know. because if i walk away from my house after filing chapter 7, how long til i can get another loan. is surrendering your house in chap 7 still considered a foreclousre or just part of bankruptcy?

[fltoo]

This economy is going to change everything credit-wise and mortgage-wise. What was done in the past will probably be all changed and things become more strict as to lending practices. You will just have to see several years down the road if you will be able to obtain a mortgage at that time.

Nothing to wait and see. New guidelines already in effect.

Keep in mind only lenders selling to the secondary market, Fannie, etc. need to conform to the guidelines.

If by chance, you can find a lender that keeps loans "in house" you might have a better shot. But, most lenders need to sell to secondary market to raise more capital for more lending, so this market might be drying up.

Timeline for BK has changed also. I will see if I can find the new info.

[fltoo]

You keep starting new threads asking for an answer that can not be given. Nothing is for sure as there are too many variables.

The forum asks that we not just post links, but this info is so lengthy. Look at the link understanding that it only gives the new guidelines. See the charts for BK and foreclosure. You must look at the totality of your situation and understand that ALL loans that are sold to the secondary market follow this.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

Try to use your search engine and make sure any info you get is up to date. Check the dates on the site. You can't just expect to post a complicated question and have someone come up with a pat answer. There is no definite answer to your questions. Collect all information and then put your critical thinking skills to use.

[freshstart10]

sure it can be answered and it was by starting over,yes i did ask how long long it would be. but mainly i was asking is walking from your home after bk considered a foreclosure or part of bk.

use your reading skills or just dont read my posts then.

thanks everyone else who answered my questions as i am new to this and worried about all thats ahead

[wonkettegirl]

It's both. You walk away from your home and the bank will foreclose (unless you arrange a deed in lieu of foreclosure, but the impact of those on your creditworthiness is basically teh same as foreclosure). The foreclosure is a state action, not a federal one. The bankruptcy is a federal action and simply means that any debt you owe on the house is wiped out. It doesn't take the place of a foreclosure. Typically, the bank will begin proceedings to foreclose during or shortly after the bankruptcy. Two separate actions.

[fltoo]

Wonkette is right. You still have for qualifying purposes, a BK and a foreclosure.

As far as the timeline, although FHA will consider 2 yrs. out with extenuating circumstances, the lender still has to approve the loan.

Again, very complicated and no pat answer.

[halloweendmb1]

if i surrender my house after chapter 7. do i have to wait 3 years to apply for fha home loan or would it be 2 years?

i guess im wondering does surrendering the house in chap 7 count as a bankruptcy or foreclosure when you apply for a fha loan?

From a mortgage aspect surrending your home after the BK will be considered a foreclosure. Late payments after a BK look very bad and will rate you a caution with Fannie/Freddie making it nearly impossible to get a mtg.

Now if you didn't sign a reaffirmation agreement the credit report shouldn't reflect you walking away because the lender cannot come after you for walking after the fact. I would speak with your attorney first.

Fannie/Freddie did adjust the October 17th bulletin and now it is 2 years from the discharge of a chpt 13 4 years from the discharge of chptr 7 and 5-7 for a foreclosure.

Find a lender that will manually UW your file and have 20% down payment you will be fine.