Foreclosure didn't report to credit... how long before I qualify?

[HopeFaith]

My Husband and I filed Chap 7 when we were 60 days late on the mortgage. We filed "Intent to Reaffirm", but the bank just wouldn't work with us. They filed a motion and continued with the foreclosure proceedings. The house foreclosed several months after discharge.

Our credit report however, shows the mortgage as "Included in Chapter 7 Bankruptcy". Even though we went through a normal foreclosure process, our credit doesn't indicate anywhere that we had a foreclosure... in fact it says our worst delinquency was 60 days.

That being said, can I apply for a mortgage 2 years post-discharge through any lender since the foreclosure is not evidence on my credit report? Or... do I have to wait 3-5 years through Fannie/Freddie?

[JustMeJaneD]

Most of the time the bank that will be underwriting your new loan and lending you the money will want more information on your bk than your credit report offers. They will review all of your BK docs and schedules. The issue of your home will come up and they will want to know what happened to it. Often they will want PROOF that it did not go to foreclosure. If you lie to them it is considered loan fraud and very bad.

Besides being the bearer of that oh so important but mythical "credit score calculation".....Credit reports are often just a surface indication to a lender of what else is and has been going on with a borrower. Be assured too that what you see on the credit report you as a consumer can get may not be what shows on a "certified residental mortgage credit report". Though its not suposed to be that way, often many things pop up on our reports that don't show on the consumer report.

Good luck - Jane

[HopeFaith]

Great advice... thanks!

[bkdone]

I'd have to agree. You'l be found out very quickly, and all of those hard pulls on your credit will be for nothing. Unfortunately, there are no short cuts... You'd be better off waiting. It doesnt hurt to talk to a broker after 2 years...see what their opinion is. But before they actually take your application, make sure you give them the entire story.

[sharksfan]

If you filed bankruptcy BEFORE your house was foreclosed on then everything is reporting as it should. Your financial obligation was wiped out when you received your discharge. The lender forecloses to satisfy their loss... however it is important to note that at this point it is NOT YOUR foreclosure.