New Mortage after 7 Discharge

[dm415]

So has anybody been able to get a mortage 2 years after discharge while still living in a home that was IIB.Does the fact that there is a property titled in my name hurt my chances for a new loan?I havent found a mortage broker yet that nows for sure.Anybody know any brokers in st. louis area?

[gophermn]

dm415 I will be watching this thread!! This March/April will be 2yrs for us and we also kept our home even though it was IIB. I think if you can show you made pymts ontime and were not late you should be good. Other thing is these people understand we could have walked away with no finanical obligation but kept the property and made pymts "OUT OF GOOD FAITH".
Sure we could have walked away and had a foreclosure on our credit report - but we chose to take the other road which I think should tell underwriting you are serious and have proved the last 2yrs you maintained and kept a home - even during this crappy economy!!!!

[mmertens67]

I am in the STL area too. My sister recommended this broker to me and I think he is really great.

[Broker's name and website deleted by moderator with information sent to dm415 by private message telling him/her that mmertens67 posted this information originally.]

A reminder for all members - posting private names, websites, and other directly identifiable information about persons related to the bankruptcy business in our open forums is highly discouraged. This is because BKForum does not wish to appear to be recommending the person or business mentioned. If the OP decides to contact this mortgage broker, it's at his/her own risk. Thanks! -lrprn

[mmertens67]

My apologies. I was not aware of that and I will not post information in the future. Thanks for bringing this to my attention.

[lrprn]

My apologies. I was not aware of that and I will not post information in the future. Thanks for bringing this to my attention.

It's fine, mm - you were trying to help, and that's great! In the future, just send the information to the person using a private message. We're so glad you are here and helping others. Hope you are getting a lot of help here too!

[dm415]

Thanks for the info folks.I am getting conflicting info about still having a home titled in your name,such as with fha they loan on primary homes only,so what about the one still titled in my name?My whole issue is if my heloc wont settle for 10% I am walking away for sure.Amtrust bank is the heloc servicer,I sent them a letter offering 10%,they are treating it like a short sale since I want the lein released for less then bal. owed.They now want a hardship and w2 and paystubs and tax returns.WTF.What dont they get.Either take 3000.00 or 0.I guess Ill just send them what they want and let the cards fall,at least I will know then.So if that falls through I want to get a new mortage on a cheaper home.

[Tom_Mi]

dm415, don't take this as gospel, but here's what I heard from my realtor (who is also my brother-in-law)....

He talked to a small bank (actually a large credit union) that does it's own loans. They said they could 'probably' consider me as long as my house is 'listed for sale'. A larger bank may not be ok with this, but if you're talking to small local banks, you might ask if it's sufficient to have your home listed with a realtor.

[mom2three09]

Wow, I had no idea this would be an issue. We're in the same boat as the OP (well almost-- we are newly discharged but staying in our home for the next 2 yrs so we can then sell our current home & buy a new one)... I guess I just always thought it wouldn't be any different then if we had not filed BK-- we list our home, get pre-approved, buy new home and hopefully right around there we sell our current home. I didn't realize banks would have a problem with us still being in a home that was IIB -- actually I figured that would look better to them since we could/can easily walk away

[gophermn]

You are right you can walk away - but the ugly word foreclosure would show on your report - regardless if your house was IIB or not. My attorney calls it "Good Faith Payments".
Make sure you are on time with pymts as your new lender wil want to see a pymt history considering there is no reporting to your credit report.

Best scenario (besides a foreclosure) is getting the lender to do a short sale. But of course best of the best is selling it via a realtor which is about as good as getting struck by lighting or winning the lottery :-)

[mom2three09]

You are right you can walk away - but the ugly word foreclosure would show on your report - regardless if your house was IIB or not. My attorney calls it "Good Faith Payments".
Make sure you are on time with pymts as your new lender wil want to see a pymt history considering there is no reporting to your credit report.

Best scenario (besides a foreclosure) is getting the lender to do a short sale. But of course best of the best is selling it via a realtor which is about as good as getting struck by lighting or winning the lottery :-)

why would that be? Our current home has equity in it ($20K+) so I really don't think selling it via a realtor is going to be too hard (and according to the realtor now is a great time to sell because of the $8K tax credit for new homeowners).

[dm415]

I dont think foreclosure would show up on a credit report if its IIB.I think the problem is if the house is still titled in your name,I was told underwriters would do a title search for any property on your name.I would think there would have to be a way around this if it was IIb in a bk anyway.Meaning your ability to pay a new mortage would be no problem since your personal obligation to the old mortage that was discharged is gone.Why would you have to show that you can afford both mortages.

[gophermn]

dm415, that is a good point to discuss. I was told (CORRECT ME IF I AM WRONG) even though your home is IIB it can still show forclosed if you decide to give it up. Now I am agreeing with all of you because if they IIB my home and stopped reporting to the credit bureaus than why would they - how could they report it was foreclosed?
It seems nobody can give me a simple answer. HHM what do you think? "If a home was IIB, and you decide to walk away will foreclosure show on the credit report"?

[monkatom]

We had two mortgages discharged on our CHP 7. We did not reaffirm either. Our case was discharged May 2008 and we continued to pay up until Dec 08. House was sold at a trustee sale on Sept 8, 2009. Thus far no foreclosure on credit it still shows as IIB 0 balance.

The problem as I understand would be once a title search is done by underwriting they will see the foreclsoure and foreclosure rules will apply for any future mortgages.

[gophermn]

We had two mortgages discharged on our CHP 7. We did not reaffirm either. Our case was discharged May 2008 and we continued to pay up until Dec 08. House was sold at a trustee sale on Sept 8, 2009. Thus far no foreclosure on credit it still shows as IIB 0 balance.

Good to know!! THANKS!!

[DebtEnder]

There is a seperate system that underwriters use to see ownership history outside of just a credit report.

So while it is true regarding affecting your score for other type of loans a foreclosure after BK will not change anything. It does still matter to the underwriters.