If discharged from Chapter 7, does foreclosure show up as a separate (later) entry?

[goblue]

on credit report?

We're trying to figure out when we would be eligible to buy a home coming off our our Ch7 in which we surrendered our home. I pulled credit report (experian) today and do not see any mention of a foreclosure -- just the Ch7.

It makes our eligibility about a difference of 1.5 years and with home prices being so low, I'd like to buy again sooner than later.

Thanks.

[drowning123]

Foreclosure doesn't show up at all. Your mortgage will show up as "included in bankruptcy".

[goblue]

So if you are doing both CH7 and foreclosure -- you are saying the Ch7 kinda wipes out the foreclosure hit meaning we would be eligible for a loan 2 years following the Ch7 discharge?

Thanks for your help!

[drowning123]

That's correct goblue. You're welcome.

[screentest]

Goblue,

Your wait will be from the actual foreclosure date or transfer of ownership back to the bank. You will not see a FC on your credit report because it was included in your BK; however, the lender still needs take back the house before your wait clock starts ticking.

Has the FC been completed yet?

ST

[goblue]

Yep - FC is completed. CH7 was discharged in 5/10, auction occurred in 10/10, so worst case scenario we won't be able to purchase again until 10/13.

[screentest]

Ok then. Me too....I am still waiting for the FC to complete so I can start my wait. I wouldn't worry though, I don't think housing or interest rates are going up anytime soon.

St

[Miknan]

I'm in the same boat. I filed ch 7 and included the mortgage. I estimate discharge Oct 2011. I thought it was 3 years after FC until I could get a new loan? If it's two years that is good news but I'm very worried about where my wife and 3 kids are going to live in the meantime. There are very very few rental homes in this area unless you want to move into some rough areas of the city which I'm not going to do with my little girls. Besides the events which led me to this (wife getting autoimmune disease) this is my biggest stressor. I have no idea what we are going to do.

[HHM]

So if you are doing both CH7 and foreclosure -- you are saying the Ch7 kinda wipes out the foreclosure hit meaning we would be eligible for a loan 2 years following the Ch7 discharge?

Thanks for your help!

Actually, NOT TRUE.

Drowning123 is correct that the foreclosure does not show up on your credit report, but that does not mean the foreclosure never happened. You WILL be subject to the 3 year clock regardless. Underwriters will still find out about the foreclosure by researching the disposition (what happened) of your prior house. Sorry, you are still subject to 3 year rule. Where not having the foreclosure helps you is in your credit score recovery (to some degree), but not for getting future mortgages.

If your house was foreclosed, it does not matter when you file BK for purposes of a future mortgage, it is still 3 years for FHA.

[Miknan]

Bummer . But thanks for the clarification HHM.

[hillaryg]

thank you! i was curious about this too cause we are working hard to rebuild our credit post ch 7 and they still haven't taken our house

[liboton21]

Does the 3 yr rule applied to conventional mortgage? I heard VA loan can occur after 2 years as long as no late payment post BK. Thanks.

[HHM]

Conventional mortgage is actually longer, something like 4 or 5 years, I forget specifically since NO ONE can get a conventional mortgage