BK not foreclosed yet

[Bounceback]

Last year (September) my BK was discharged. We did not reaffirm our house and it was included in BK. The bank has not taken the home back yet. I keep hearing that despite the home not being foreclosed on.. we could still purchase a home 2 years after BK discharge. We will not be using a conventional loan next time around..... FHA or VA..

[babsthebear]

The standard waiting periods after BK 7 at this time are:
FHA = 2 Years
Conventional = 4 Years
VA = 2 Years
USDA = 3 Years

Your challenge here is that currently FHA uses the LAST derogatory event to begin their waiting period. This means, according to what you posted, that you will need to wait until the property is disposed of, which will then trigger their Foreclosure waiting period, which is 3 Years. On the other hand, since you included the mortgage in your BK, then Fannie Mae views the discharge as the BEGINNING date of the waiting period - after BK (not when the property is deeded out of your name, as with FHA). The wait period is 4 Years for Fannie in that situation. You can do a 5% down payment in that situation. You are a few years off from purchasing again, so watch the date and see which one "hits" first. Keep your credit perfect in the meantime. This changed late 2014 for Fannie Mae, but no other guarantors (lenders) have jumped in to understand that BK 7 discharges the debt and it is no fault of yours that your prior lender took years to dispose of the property. Hope this helps!

[AngelinaCat]

I am sorry to say that you are in the very beginning stages of this agony. I am not being melodramatic; I am stating first-hand--well, second-hand experience. It may very well take five or more years to get that property out of your name.

My dear 'Hub's ex-wife filed Chapter7 BK in September 2012. She was Discharged December 12, 2012. She surrendered her home and hand delivered the keys to the lender, Springleaf Financial, formerly known as American General Finance. Agents of Springleaf, and the subsequent Junk Debt Buyers have been hounding her for years--during and after the BK and Discharge. Every time a new JDB gets to loan, a new law firm comes into play. Ms. Ex-'Hub has now been to FIVE different Case Management hearings.

We have been trying to help her. We have been with her at each Case Management. All she wants is to be free of this burden. We will see what happens as the result of the one we attended yesterday.

Good wishes to you~~~~