Can anyone clarify?

[mickeyme]

[jwsmartin]

To my understanding, the second really means nothing if the first can't be paid off when they sell it. Also, if your first was a FHA and they don't make enough to cover what you owe, they will file a claim with HUD. That stays on for 3 years. I'm running into that problem right now with a FHA loan. Hopefully we can get past it. I'm eager to buy.

Hope that helps.

[mickeyme]

Thanks jwsmartin. This may sound like an elementary question but how do I find out if my first is a FHA loan? It is a 7yr arm principle & interest that will adjust 2012 with Ditech. My second is with Citi and is a fixed 2nd.

We are also eager to purchase but in the mean time we are going to take this rent free time to save up $$$. How long did it take before you had to leave your place? I need
4-6 months so I plan on paying my first to buy some time. Any thoughts?

[jwsmartin]

I'm sorry but I don't know the answer to the FHA question. Generally I think FHA are 30 year fixed loans. They can be adjustable though. Best way to find out would be to check you original paperwork or call the lender.

We included our home and both mortgages when we filed. We moved out and started renting before we actually filed bk, but that was because we moved out of state. We were discharged in August of 2008.

I have a post on here about buying a home. We are currently in the process right now! Check it out for more info if you like.

As for your plan, the longer you stay the longer before the foreclosure process starts. That will be the ultimate factor in when you are able to get another loan. Usually it's 3 years for a foreclosure, more if you go for a conventional loan. If you don't mind waiting longer, I would take your time and save up. Either way, now that you have no debt, this is the time to get that money saved up. We have been renting 2 years now and have been able to really enjoy life post bk, and not make the same mistakes twice.

Good luck!