May I buy a home post chap 7, then walk away from non-reaffirmed mortgage

[LadyInTheRed]

well ok, not illegal -bad choice of words but....who wouldn't do this? So you get crappy renters that bail out on you after the first couple of months. You don't lose anything by doing this. You have a nice new house and get to get rid of the old one. Since it was already discharged in your BK there is no financial loss on your end. I'm guessing a foreclosure will still end up on your credit report but you already have a new house what really does that matter.

I'm guessing most people can't do this so easily. Oftentimes, people can't rent a house for enough to pay the mortgage and expenses. Even if they can, I bet the lenders' standards are higher than being able to cover costs. Note that hopejones says the renter signed a lease before the loan was approved and that having renters was ONE of the conditions. We don't know the others. The bank might have required a lease of a certain length. They may want to see some additional income available to cover periods of vacancy. Some people just may not want to be landlords. Or they have no savings for a down payment and lenders aren't making zero down payment loans any more. Even highly qualified borrowers are having trouble getting loans these days.

[sadandconfus]

im thinking the mortgage company will either say no to me because im in my house "renting". i can either let it foreclose and try again in 2-3 years. whats the difference or buy new now and then bail? it will show my name in the title search compared to the banks name.

[LadyInTheRed]

im thinking the mortgage company will either say no to me because im in my house "renting". i can either let it foreclose and try again in 2-3 years. whats the difference or buy new now and then bail? it will show my name in the title search compared to the banks name.

If you own a home that has a mortgage recorded against it, you will not be able to get a loan to buy another house unless the mortgage on the current house is getting paid off or you have the income to pay both mortgages (whether the income be rental income, income from employment or some other verifiable income), at least not according to what people have written on this board.

[just to clarify, in my post above, when I say "renting", I mean renting the home to a tenant. I don't refer to paying a mortgage as "renting", although I understand the point people are making when they do.]