LSUTiger, this is beginning almost be a daily subject matter on the forum nowadays, as people are slowly hitting those FHA guidelines to attempt to get a new mortgage. for people like me, who live in a state where the statue of limitations is 20 years the bank may never foreclose, in my case it's over 5 years and chase will not budge. you can't force them, even tho i filed a complaint with the OCC, chase can do what they want and they don't want to foreclose, and they don't wait to do a DIL....all of this making absolutely NO sense, as we had PMI and an FHA that was covered and they can get paid if they filed a claim. when i spoke to the FHA they said there is a process chase must go through to put in a claim, which i was also told your mortgage would be a 100% payback of any remaining amount AFTER chase forecloses on the property. but, that is the key, the FHA has a process prior to them paying out a claim and that is step one, the lender MUST foreclose. also think of other ways and means other than the FHA. if we buy again it will hopefully be conventional financing with hopefully over 1/2 down. we did want to start looking for a another home sometime in the near future, i was just waiting to pay this one off first. but the more i'm thinking about it, the more i'm thinking just keep this house and rent a place at the second location, that way i don't have so much responsibility, other than hand someone a check at the first of the month. (this had me really thinking after i dished out over 1k worth of this and that expenses this past month on work that needed to get done around here).
many states are not like nj where the statue of limitations for deed exchange is 20 years, some are 3 or 5....so then one would have a right to go after the bank to push them to move. i will not be so lucky.
lenders are refusing at their own discretion. frankly, i can count on one hand how many mortgages i have seen go through on this forum in the past 3 years. i was really thinking or hopeful thinking within the next 2 years we would really begin to see some movement from the lenders to get people back in all these empty homes. we have a TON of them here in florida.
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Don't make the same mistake I did.....advice after your BK
I am some 3 1/4 years out of BK, discharged November 2009. We have been trying to re-fi the home we are living in for nearly two years now. First we were told we had to be two years of our BK. We waiting until November 2011 and applied. We were then told that since we included two properties that we surrendered that we had to wait until November 2012 (3 years) because they were treated like a foreclosure.
Here is the bad news. That's not how it works. After you get discharged, if you surrendered property you need to stay on the bank to FORECLOSURE or do whatever you need to do to get the title out of your name! These two properties have never been foreclosed on and therefore I will NEVER be eligible for an FHA loan. You must wait three years from the date the title is transferred out of your name. Since the properties, as I have now found, are still in my name......no clock has started for me. My only hope now is a credit union that will look at our stable (5 and 20) year work history, six figure income, less than 10% DTI and the fact that the re-fi saves us money over what we are already paying to give us a portfolio loan. No loan can occur for us that would need to be sold to FNMA or Freddie. We are pretty much screwed.
Moral of the story.....get the properties out of your name as soon as you possibly can. Banks are stalling on purpose, you need to hound them until they take the title back on the property.
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