Ch 7 discharged in July 2012...when will they take this house?!

[bkinMA1985]

So...we had our Chapter 7 discharged in July 2012. 4-family house was included. Nearly two years later and here we are still hanging out, not paying mortgage but paying water/sewer, doing repairs etc. since house is still rented out (we live in one of the apartments). We basically have heard nothing from the bank (BOA). Part of me likes that we can stay here and save money but the other part of me would just like to move on already. Anyone have any idea how long we can expect to continue living here?

Another question, is it really 3 years from auction before we could qualify for another mortgage? I doubt we will be buying a house anytime soon but just curious if the option would even be there in the short-term.

[LadyInTheRed]

It could be months or years before the bank forecloses. There really is no way to tell.

FHA requires that 3-years pass from the date of foreclosure (when the deed is out of your name). My understanding is that you can apply for an exception after a year if you can show the foreclosure was due to extenuating circumstances out of your control (medical emergency, death of spouse, decrease or loss of income).

I'm moving your thread to the Mortgage After Bankruptcy forum. If you read some of threads there, you will see there has been some disagreement about the waiting period when you have both a BK and foreclosure. Remember that FHA sets requirements, but each lender can set more stringent requirements if they want.