If I BK the house but stay 2yrs (making pmts) then apply for mtg...

[Tom_Mi]

I'm trying to figure out how to get my next house.

I'm doing a ride-thru...making the pmts.

2yrs from now I'll be at the FHA point..and there's no foreclosure since I'm making payments.

My questions:
-Can I apply then without the current payment hurting my debt/income ratio?

-Will the lender ask (suspiciously) how I intend to dispose of the home I'm currently living in?

-Will the lender expect that a sale must occur of the current house, and watch to make sure I don't just walk? (which IS my plan)

[Stilltheone]

Tom,

I have always wondered this as well. We did a ride through on our home even though we're upside down in it.

Ideally, I would love to buy a new home and just "walk away" from my old one b/c the debt was discharged. I have a feeling that lenders would find out somehow though, but I see your line of thinking and have thought it myself!

[ela805]

I went to bed with this EXACT same question in my head. I'm sorry I don't have the answer but I'll be anxiously awaiting some replies right along with you!!

[Tom_Mi]

It would be nice to see a sticky "what the heck to do after tom smugly chose a ride-through".

I have no idea what the end-game is here. We WILL want to move...after all that's the point of the ride-through.

[Stilltheone]

Tom, I hear ya. I'll be ready next year for FHA. We want to build a home. It would be so nice to be able to walk away from our current home because we are so upside down.

I'm waiting for responses also!

[dm415]

Very good question,So when you go to apply for a loan after your 2 year wait,do they(lenders) look to see if you have any real estate still titled in your name or would they just go by you credit report,which would show included in bk,discharged,I talked to a mortage broker ,he also clarified something about the 3 year rule on foreclosure,he said if the foreclosure does not show up,they will start the 3 years from when you were 90 days late.

[Tom_Mi]

Very good question,So when you go to apply for a loan after your 2 year wait,do they(lenders) look to see if you have any real estate still titled in your name or would they just go by you credit report,which would show included in bk,discharged,I talked to a mortage broker ,he also clarified something about the 3 year rule on foreclosure,he said if the foreclosure does not show up,they will start the 3 years from when you were 90 days late.

So, if I was never late, because I'm still in the house 2yrs later, they'd write the loan? (because no foreclosure happened)

And they wouldn't "notice" that I'm in the house now? (and wonder how I'm going to get rid of it)

[HHM]

Ahh, the buy and walk strategy.

This question was interesting so I asked a mortgage broker about it, he said that they used to be able to do it a few years ago, but the lenders have wised-up and have put up several road blocks to making this happen. The main one being that they will require proof of a 1 year lease on any existing owned real estate.

Nice idea, but I don't think it is very feasible anymore.

[dm415]

I think that is the magic question,would they still know that you have a house out there still in your name,but then again it shouldnt matter,the debt has been discharged.

[Stilltheone]

Ahh, the buy and walk strategy.

This question was interesting so I asked a mortgage broker about it, he said that they used to be able to do it a few years ago, but the lenders have wised-up and have put up several road blocks to making this happen. The main one being that they will require proof of a 1 year lease on any existing owned real estate.

Nice idea, but I don't think it is very feasible anymore.

But how will they know if you have the property if it shows that it was IIB? If both of my mortgages show IIB, how will my new lender know what I still make payments to them? Will they physically call them up and ask?

I am so curious!

[Stilltheone]

Here's another question..Let's say I stay in my house until the bankruptcy is removed from my credit report or I hire a firm like Lex. Law to remove it. My mortgages will then be completely gone. Then what?

[dm415]

How in the world can you get your bk removed from your credit report???

[Flamingo]

How in the world can you get your bk removed from your credit report???

You can't....places like Lexington Law survive by constantly disputing items on credit reports...when an item is disputed, it temporarily disappears from the credit report until resolved. It's only a matter of time before it all reappears and during this time you are paying hundreds of dollars a year for them to keep disputing items. Wonder what they can dispute when it is all verified and can't be disputed anymore....what's the old saying? There's a sucker born every minute???

[Scooter10]

But how will they know if you have the property if it shows that it was IIB? If both of my mortgages show IIB, how will my new lender know what I still make payments to them? Will they physically call them up and ask?

I am so curious!

Lets see....Yes they will call up the lender or make you provide proof. This is key in auto loans as this is where most people do ride-thru
The know about your BK so they can ask for your petition, or just go get it on pacer. The can search county records very easily and see you are still deeded on a property, ask for lease and verify bank statements to see that you atually pay the lease(especially if they are suspicious of something). When they pull your credit it will alos show your previous addresses from previous appliactions They can also ask for utilities statements. Lenders are pretty savy these days, they are feel the pain now so being extra cautious. Even A+ borrowers are having a tough time getting a mortgages now.

[hereforinfo]

You will have to disclose it on your application. If you don't, and you get caught, it's mortgage fraud and they are cracking down on that very hard right now due to the current mess we're in.

The current mortgage payment WILL be considered against your DTI ratio. You would have to provide proof of income to support both mortgages. Especially considering you would be just 2 years out of bankruptcy, your application/credit is likely to be more closely scrutinized regardless of your credit score. No law firm is going to remove it from your credit report. Even if they were successful in getting one agency to fall for it, the odds of all 3 of them doing it is slim to none and slim just left town. And like the reply above stated, it would simply show up again the following month when they update.