with a Bk and Foreclosure

[monkatom]

Is it possible to eventually get a house? BK closed on May 08 we have since decided to most likeley let house go into foreclosure. Does anyone have any ideas how difficult it will be to get a mortage in 2 to 3 years if we have a 10% deposit and worked on getting credit score up?

[Flamingo]

No one really can say for sure what you will ibe able to do in 2-3 years after your discharge after this recent mortgage meltdown. At this moment even folks with excellent credit are having a hard time borrowing. Your problem is that you will have a BK and then a foreclosure on your record and that is going to make it more difficult for you. Your best bet is to be stellar over the next few years with your credit and do not be late with anything and make more than minimum payments on credit card you may obtain. The more you show you are creditworthy and financially savvy after a BK discharge the better you will look to a mortgagor.

[Never_Again]

Flamingo has good advice...

Don't forget this though... the more down payment you accumulate, the better you will look to a lender. 10% will not be much when someone else has already lost money on you with a foreclosure (probably looks worse than a bankruptcy.) Try for a higher amount (at least 20%, but 30-40% would not hurt.)

[newimges]

I'm a little confused.

Our bankruptcy was discharged in January of last year. Our mortgage was discharged with the bankruptcy and showed a 0 balance on our credit reports. We had never made a late payment on our mortgage before filing bankruptcy. We have since decided to walk away from our house and stopped making payments but not until a few months after the bankruptcy was discharged. The bank has started foreclosure but it was my understanding that since the mortgage was discharged with the bankruptcy - the foreclosure would not affect our credit. Am I wrong? My husband and I both have credit scores in the high 600's and each have one credit card and are working hard to rebuild our credit.

Thanks!

[hereforinfo]

Lending standards are getting tighter by the day. I'm already hearing the buzz about requiring 20% down for those with great credit. There will be no more "10% down," and PMI is almost impossible to get right now. Too bad these rules weren't in place 5 years ago.

[StartingOver08]

I'm a little confused.

Our bankruptcy was discharged in January of last year. Our mortgage was discharged with the bankruptcy and showed a 0 balance on our credit reports. We had never made a late payment on our mortgage before filing bankruptcy. We have since decided to walk away from our house and stopped making payments but not until a few months after the bankruptcy was discharged. The bank has started foreclosure but it was my understanding that since the mortgage was discharged with the bankruptcy - the foreclosure would not affect our credit. Am I wrong? My husband and I both have credit scores in the high 600's and each have one credit card and are working hard to rebuild our credit.

Thanks!

Since you discharged your mortgage in your bankruptcy and DID NOT REAFFIRM, you can walk away. Your credit report should show IIB and zero balance on your mortgage and can not be modified to show the subsequent foreclosure because you did not reaffirm (which is a good thing).

Monitor your credit reports. The mortgage company may try to report it incorrectly anyway and it is up to you to make sure they don't change the reporting on your CR.

[newimges]

There were quite a few creditors including our mortgage company that were dismissed with the bankruptcy that didn't report correctly on our credit reports but I disputed all of them and they were changed right away. I review our credit reports on a regular basis.

So I am correct that since the mortgage was dismissed with the bankruptcy - there would be NO Foreclosure on our record? I am asking because we plan on purchasing a new home and possible waiting the 2 years after discharge for an FHA loan but I am reading that you must wait 3 years after a foreclosure.

Thanks!

[monkatom]

I was wondering the same thing. I do not want the foreclosure to hit my credit report as I was hoping to get a new home two years after I move out with a more realistic monthly payment.

[RickInMich]

This question is asked repeatedly on here, and no one has ever had an answer. We were discharged March '08, stopped making payments, house finally went back to bank this past October. So far there is no public record listing foreclosure, and it hasn't seemed to affect our score.

I may post this elsewhere, but I am wondering. Equifax shows up as simply "derrogatory" in the Countrywide section. TransUnion is completely blank. And Experian still shows our final balance and account in good standing. I see now I should dispute Experian, but I'm wondering if that's why my Experian score is so high. That's 756. I'm wondering if once I have that removed, it will show I had little credit experience. We'll see. But then I'm wondering about that Equifax. Is that right to show as derrogatory?

[Carter]

I was told recently by a loan officer that FHA requires 3 yrs from a forclosure and two years after discharge of Chapter 7. If you are in a Chapter 13 you can go FHA after showing one year of on time payments to the trustee with approval from the trustee.

[Logan]

I was told recently by a loan officer that FHA requires 3 yrs from a forclosure and two years after discharge of Chapter 7. If you are in a Chapter 13 you can go FHA after showing one year of on time payments to the trustee with approval from the trustee.

Another reason why home prices will take a while to recover. Just about everyone who is being foreclosed upon is now out of the market for a home purchase. Everyday more homes go on the market and the only way that will change is to loosen up the money which may help all of us out of BK and/or foreclosure.

Logan

[newimges]

This question is asked repeatedly on here, and no one has ever had an answer. We were discharged March '08, stopped making payments, house finally went back to bank this past October. So far there is no public record listing foreclosure, and it hasn't seemed to affect our score.

I may post this elsewhere, but I am wondering.

Equifax shows up as simply "derrogatory" in the Countrywide section. TransUnion is completely blank. And Experian still shows our final balance and account in good standing. I see now I should dispute Experian, but I'm wondering if that's why my Experian score is so high. That's 756. I'm wondering if once I have that removed, it will show I had little credit experience. We'll see. But then I'm wondering about that Equifax. Is that right to show as derrogatory?

Our mortgage showed up as derrogatory after the bankruptcy on Equifax and TransUnion. I disputed both and now they show as 0 balance and included in the bankruptcy.

There were quite a few accounts on our credit reports that did not show they were discharged in the bankruptcy. I disputed all of them and they were quickly changed. I even had one account that was paid off before we filed bankruptcy so the account was not included in the bankruptcy and it was showing up on my credit report that it was. I disputed that as well and now it shows a 0 balance and all payments made on time. You really have to examine your credit reports carefully and if something isn't right - you need to question it and get it fixed.

[newimges]

I was told recently by a loan officer that FHA requires 3 yrs from a forclosure and two years after discharge of Chapter 7.

That's what I have read and what I don't understand.

Since our mortgage was discharged with the bankruptcy - I assumed that the foreclosure afterwards wouldn't affect our ability to buy a house after the 2 year waiting period from discharge. We didn't have an FHA loan on our mortgage - it was a conventional loan through CountryWide.

I realize that the foreclosure can not be reported on our credit reports but I am concerned that we may have to wait the 3 year period for a new FHA home loan. I am wondering how a lender would even know about the foreclosure since it wouldn't appear on the credit report. Nobody seems to be clear about this.

[halloweendmb1]

fannie/freddie say 5-7 years if foreclosure new rules in effect as of 1/1/09

4 years after bk discharged for both 7 & 13 (13 no longer goes by filing date)

[Never_Again]

I am not sure about the foreclosure on the credit report from the mortgage company. I believe that you have been given correct information in that the mortgage company can not list the foreclosure if the loan has been discharged.

However, two things...

First, a foreclosure can be a public record, which can appear on your credit report. This would not be stopped by the discharge of the mortgage?

Second, the mortgage application will ask if you have ever had a house foreclosed on. You would need to answer yes to that, as it would be fraud to lie. Something tells me that loan fraud will be looked at a bit more seriously in the future...