Both mortgages discharged after Ch. 7, now qualify for FHA loan.

[Amy26]

Right, gotchya... I'm with ya too.

Technically, all mortgages are discharged in your BK unless you reaffirm them. The question then becomes do you keep paying on the home anyways and stay living in it or do you move on and let it foreclose. So, no a foreclosure is not a discharge... The BK discharge removes your liability to the note. The foreclosure changes ownership and can happen any time after the bankruptcy is discharged.

[tobee43]

valle...good one! i just checked it out.

we never tried for a loan at all, and i know when we wanted to co-sign for someone it was only 2 years out but my fault since it was stated over and over again it's NOT the discharge date it's the foreclosure date. i simply just believed it. that goes to show, you hear something often enough, you believe it.

for someone like me, where the bank will most likely NEVER foreclosure this is excellent to know..just in case, as i'm not really wanting another mortgage anytime soon.

yes, i need to restate my statement here...someone mentioned this was just a post and that's all it is. it really wasn't a factual based statement. if and i'm not looking up the fha guidelines at this very moment, that clause is there, i don't know why more people are not using it. once again, it comes down to this.

whether it's actually in the guidelines or not, it's still up to the lenders desecration, they can disapprove, or approve whom they chose. that's the bottom line. again, i think of the couple 6 hours before the close who by the way ended up at a hotel with no place to go with two little kids because they even had it writing, and yes, they could have gone after the lender but at what cost.

[tobee43]

K, guess you all just ignored what I said... np, I'll shut up after this.

But not all lenders are going to be following that. I think in jpracer and others situations it is working out differently because the house never actually foreclosed and they are still living in it. So, taking the date of the discharge as the 'foreclosure' date works because there is no actual foreclosure date.

People like me who actually had the home foreclose a year after discharge (or longer) will most likely not have the same experience (and I know other people on different forums who have done this). The foreclosure creates a new public record, so it won't go un-noticed. Trust me, my husband and I have been wanting to buy a home together for the last 2 years and I have been told time and again exactly what I posted in my thread at the top of this page. There are always exceptions to every rule, but I don't feel comfortable with everyone just sitting here going "YAY, WE ALWAYS THOUGHT IT WAS 3 YEARS POST FORECLOSURE AND ITS NOT!"

no amy, i didn't and i think i am with you.

i'm still completely not convinced of this since once again each lender can interrupt the guidelines as they see fit. also...the question here is basically, from the way i see it, if your mortgage was discharged in your BK then it's the time the clock starts ticking...while my understanding was it had to be after the actual foreclosure. the fact that you are living a real experience that someone could not get a mortgage because their names are still on the deed, sounds about right. or at least i have know that as the way it is.

a foreclosure is not a discharge?

[Amy26]

K, guess you all just ignored what I said... np, I'll shut up after this.

But not all lenders are going to be following that. I think in jpracer and others situations it is working out differently because the house never actually foreclosed and they are still living in it. So, taking the date of the discharge as the 'foreclosure' date works because there is no actual foreclosure date.

People like me who actually had the home foreclose a year after discharge (or longer) will most likely not have the same experience (and I know other people on different forums who have done this). The foreclosure creates a new public record, so it won't go un-noticed. Trust me, my husband and I have been wanting to buy a home together for the last 2 years and I have been told time and again exactly what I posted in my thread at the top of this page. There are always exceptions to every rule, but I don't feel comfortable with everyone just sitting here going "YAY, WE ALWAYS THOUGHT IT WAS 3 YEARS POST FORECLOSURE AND ITS NOT!"

[tobee43]

valle...good one! i just checked it out.

we never tried for a loan at all, and i know when we wanted to co-sign for someone it was only 2 years out but my fault since it was stated over and over again it's NOT the discharge date it's the foreclosure date. i simply just believed it. that goes to show, you hear something often enough, you believe it.

for someone like me, where the bank will most likely NEVER foreclosure this is excellent to know..just in case, as i'm not really wanting another mortgage anytime soon.

[tobee43]

FINALLY, found fha guidelines on bk7 and shortsales. It said that if a mortgage was included in bk7 and NOT reaffirmed they consider it a foreclosure. And to wait 3 yrs after bk discharge date to obtain a fha loan

can you post that site?????? that's excellent to know!!! can you just give us the link to that particular FHA guideline. and while a foreclosure is treated differently on one's credit report, i have never had an understanding that the fha would accept the fact your mortgage was IIB (not being affirmed) this is great news.

on the forum it has repeatably been stated it's 3 years AFTER the FORECLOSURE and NOT the discharge.( with the provision that one did not reaffirm).

[ValleYum]

Look at last2cents comment in the post on waiting period after BK, total cofusion, The direct endorsement underwriter gave her the info which is same info i found, just cant remember where i found it due to so much searching

Here: http://www.bkforum.com/showthread.ph...l=1#post559044

[jpracer37]

Look at last2cents comment in the post on waiting period after BK, total cofusion, The direct endorsement underwriter gave her the info which is same info i found, just cant remember where i found it due to so much searching

[jpracer37]

Wish i could remember the link to where i found the info, but there was a poster on her whose sister was a direct endorsement underwriter, that gave her the same info i found. It said that if a mortgage was included, but not reaffirmed, even if there was no actual foreclosure in a BK7, they will go 3 yrs from DISCHARGE date. My wife and I are at 3.5. All i can say we turned in all necessary documents, explained our BK7 and situation with current mortgage in writing, PER the underwriter, not loan originator. Our credit history was checked, conference call with mortgage companies for late pay, current on loan, what balance was, all ordered PER underwriter. Had to give a years worth of taxes, and payroll. Got all info back from underwriter, which thru all of this knowing that we put in for FHA loan and knowing about BK7 and knowing that new loan would be primary residence still did not ask about disposition of current home, even though we are still paying on loan that was discharged, AND still gave us the ok on the new loan.

[doodlebugger]

Looking forward to hearing how your situation goes....for some reason my situation was removed from this thread and posted on its own. JP - hang in there! I know it's hard to wait!

[Amy26]

I'm still not totally convinced... I sent an email to a broker who is the production manager with K Hovnanian American Mortgage and in his exact words to me this is what he said:

Different loan programs have different seasoning requirement when it comes to Bankruptcies and Foreclosures. As it relates to your situation, regardless of the home being included in the bankruptcy, the banks still do view this as a foreclosure and will use the foreclosure date(trustee sales date to the bank) for date used to count outwards from for seasoning. Based on the 4/2010 foreclosure date, below is a list of loan programs and the earliest you could look to obtain a mortgage approval from us:

1) Conventional Financing(Require minimum 10% down): 4 years from the date of the Foreclosure
2) FHA Financing: 3 years from the date of the Foreclosure
3) VA Financing: 2 years from the date of Foreclosure

I gave him all my information about when my bankruptcy was and when my foreclosure was and he said I had to use the date of the actual deed transfer as he put it "trustee sales date to the bank".

So, I dunno I think different lenders are maybe gonna bend the rules differently?

[LadyInTheRed]

We went and got pre approved for new mortgage and like i said before we had to do a conference call to show we were up to date on mortgages. Got the letter last week that said we qualified for loan. Even before we went thru process we told lender about situation after BK7, told them about no reaffirmation agreement.

Many people get pre approved only to have funding denied by the underwriting department. I'm not saying that will definitely happen to you. But, a pre approval is not a guaranty that the loan will fund.

FINALLY, found fha guidelines on bk7 and shortsales. It said that if a mortgage was included in bk7 and NOT reaffirmed they consider it a foreclosure. And to wait 3 yrs after bk discharge date to obtain a fha loan

I am glad you found that! We have always had a hard time getting a clear answer to fha guidelines on this question. Could you please provide a link to where you found the info?

[jpracer37]

FINALLY, found fha guidelines on bk7 and shortsales. It said that if a mortgage was included in bk7 and NOT reaffirmed they consider it a foreclosure. And to wait 3 yrs after bk discharge date to obtain a fha loan

[tobee43]

amy you mentioned the fact about getting one's name off the deed, and this is also my understanding as well. your name must be off the deed prior to the acceptance of another loan.

that was the main reason we had to look for owner financing, where we own the IIB mortgage, that bank has yet to even begin foreclosure and it's been well over 4 years. when researching i found that this state, which in this case is nj, they, the bank had 20 years to do a deed transfer. so basically, in my life time, they may never take our names off that deed if the bank doesn't proceed with a foreclosure, or which i know they are not willing, but unless we could get a DIL...we were able to do that on our non-primary residence, but not on the big one. chase will not move an inch. we were lucky and found this house with a rather substantial down payment the owner financed the rest @100%, by passing the banks completely.

again, thinking about the couple i know, they went through all the motions and the lender let them believe that afternoon they were closing. the reason the lender pulled back was another property they owned, never late with their payments etc., still current DMI perfect and proof of income on the other property. the lender said then they NOW (we are talking over 8 weeks in the hands of the underwriters)... wanted a co-signeer...they got one in a hours time. then they asked for two co-signers, i know this sounds unreal, but it really happened. they got the second co-signer as well, but the lender who i'm certain thought it impossible to get the one co-signer, no less two, still then said no. now, of course this couple held back no information at anytime during their process. after knowing this happens, it's very scary out there that's all i can say.

jp...i so hope this all continues to go well for you! i'm so happy for you, that is a very hard nut to crack and it appears you have cracked it!

[tobee43]

Closed in April.

Everything else was ok, I met DTI for both properties, had the cash to close, and 700 credit score.

very nice!!! also, good to know someone is lending in texas! wish it would open up here, i'm sure it's coming, since i can't see what the heck the banks are going to do with all these empty properties.