Confused need help-Bankruptcy did not stop my foreclosure

[samanthajt]

Here's the steps
1. Hired a BK lawyer to stop foreclosure (still living in house in my name was making payments then moved to have the house included in foreclosure)
2. They foreclosed any way (days after filing bankruptcy and everyone was notified)
3. Been in BK for almost 5 years Chapter 13 about to be discharged.
4. Getting ready to do a short sale as not to have a foreclosure on my property went to city site that's when I found out about number 2 the the foreclosure was not stopped.

Preference I did finally move the house into the foreclosure because I got sick and could not work.

Here I sit trying to get straight answers from my lawyer

1. Can I still short sale the house since they are telling me the house is still in your name?
2. Do I have to do through the court?
3. Can I do it after the discharge? will the foreclosure stand outside of the BK or do I need to do a short sale inside the BK to protect from that happening.
4. Does the foreclosure stand?
5. Is it a legal foreclosure even though a BK was filed?

I need to know how to move forward to limit the effect of the foreclosure and BK

Location: Florida

Thank you, Samantha

[LadyInTheRed]

Either the foreclosure went through or the house is still in your name. Both, can't be true. So, you need to figure out exactly what happened. If the bank foreclosed after you filed your BK without getting a relief from stay, that should be reversed. You'll need your attorney's help to do that. Or, if you don't want the house any way, just leave it alone. A short sale is not going to be any better on your credit report than a foreclosure, especially one that happened 5 years ago.

If there was no foreclosure, you would negotiate a short sale with the bank. They don't have to agree to it. If you do a short sale, make sure that the bank can't come after you for the deficiency.

[samanthajt]

1. There is a judgement filed for the foreclosure.
2. I do still live in the house and the house is in my name (they just have not moved to change name. Is that because I am in the BK?) it was added into BK about two years ago

My understanding that the time period on credit file of a foreclosure starts from the day the property is out of your name not the date of judgement (that's what a mortgage broker said to me), is that true?

We all know how confused banks can be and different departments not communicating adding a bankruptcy this could have just fallen through a crack.

They just sold my loan to the Nation Star and they were threatening foreclosure procedures but have not done anything I am sure they have seen the judgement of foreclosure against me.

I would gladly leave the foreclosure to stand if that was the case from date of judgement.


How long before FHA guidelines allow on BK, Foreclosure and then there are the Banks guidelines which banks allow from date of judgement?

[LadyInTheRed]

Yes, the foreclosure date is the date title is transferred out of your name. Did the foreclosure sale actually take place? Are you sure the judgement that was entered after your BK filing was not vacated? Because your name is still on the house, it sounds like the process was stalled by your BK filing. If it was, the creditor can pick up where it left off after you are discharged.

When you say that the house was added to your BK two years ago, do you mean that your plan was modified to surrender the home so that the mortgage will be discharged? If so, there really is no advantage to a shortsale other than moving things along more quickly. I am not certain, but if paperwork was done correctly, Nation Star might be able to step into the shoes of the lender who initiated the foreclosure, and get the court to set an auction date. If that is the case, the foreclosure might happen more quickly than a shortsale. If I am wrong, and Nation Star would have to start the foreclosure process over, you might try offering a deed in liu of foreclosure or shortsale. But, I have read that shortsales can be a nightmare for the seller. The banks do not make it easy.

Here's a good article on FHA guidelines. http://www.lender411.com/fha-home-lo...er-bankruptcy/ And Keep in mind that these are only guidelines and FHA lenders can, and often do, have stricter requirements. If you are relying on the advise of a mortgage broker, make sure the broker is experienced with dealing with borrowers who filed Chap 13 AND had a foreclosure. There is a risk that a broker will tell you one thing, but when you get to the end of escrow, you'll find out the underwriter sees things differently and may refuse to fund a loan.