Road to a post bankruptcy mortgage�

[DebtStinks]

[Ugh07]

There are still some smaller Banks out there doing USDA deals without overlays fro BK and foreclosure. So if you have a 660 score you might be ok.....FHA and conventional will not be possible for a while.

[keepswimming]

Great thread.
Debtstinks, so just curious, pre BK, were your scores lower than 660?

I hope that you and many others are able to buy something again while the market is still a buyer's market. Also, what about buying on contract...is that a possibility? Or is that what DIL is?

This may be a dumb question, but if you filed BK and did not reaffirm the mortgage, doesn't the foreclosure technically start when the bk was discharged? I suppose not...hence, the "new timer" you mention.

[monkatom]

I believe the foreclosure date starts the day the home is transferred out of your name. So in my case I was discharged from BK in May 08 Stopped paying on House January 09 Sold at trustee sale Sept 09 but transferred out of my name Oct 09 per the county recorder records. So my three year mark for FHA would be Oct 2012.

[keepswimming]

So you when you filed, did you reaffirm your mortgage? Just wondering why you kept paying it, etc...

[DebtStinks]

Great thread.
Debtstinks, so just curious, pre BK, were your scores lower than 660?

I hope that you and many others are able to buy something again while the market is still a buyer's market. Also, what about buying on contract...is that a possibility? Or is that what DIL is?

This may be a dumb question, but if you filed BK and did not reaffirm the mortgage, doesn't the foreclosure technically start when the bk was discharged? I suppose not...hence, the "new timer" you mention.

We were 730 or so before Bankruptcy... 2 months after discharge we are 601 and 598. We stopped making payments 3-4 months before we filed. I think if I had to do it again I would be current up until we filed. I'm sure our scores would be higher if we didn't have all the 30,60,90,120's on the report.

Buy on contract? You talking about owner financing? I've looked into owner financing and it looks like a potential nightmare. Not sure I'd go for it unless I knew and trusted the owner.

Pretty much everything I've read points to the foreclosure timer starting either on the sale date or when the transfer of title is done (shortly after the sale date).

[monkatom]

So you when you filed, did you reaffirm your mortgage? Just wondering why you kept paying it, etc...

No we did not reaffirm. We had planned to stay in our home since we had done so much work on it, kids born there, etc. Then we realized the home was a big part of the reason we had to file BK and decided to walk away. Well I guess i decided and brung the wife along kicking and screming. But we get keys to a townhome on Wednesday so she is happy.

[dm415]

Real estate has not bottomed yet.No hurry,take your time.

[keepswimming]

dm415,
that statement is sad, true, scary. It is all just such a gamble, really. Sort of the old "damned if you do, damned if you don't" scenario. We always seem to get it wrong and zig when we should zag. I am hoping to time this life-changing event in the best way possible for us. If that is possible.

Pretty much decided we need to file. Just not sure what to do about the mortgage yet. We definitely want to move to another state when a job becomes available. Right now I would guess we are only upside down by 20K on the 140K mortgage, which is not nearly the extremes some areas are faced with. I presume since we live in a very rural area, that the house would take forever to sell and even longer to foreclose on. hmmmm. Thanks to all of you for all the help so far.

By the way, I just got off the phone with citibank regarding the credit card. The lady was an absolute Godsend. Just so understanding and told me flat out that she has done this and promised me I would feel SO MUCH BETTER in a couple months when all this is behind us! I really needed to hear it right then!

[logansdad]

By the way, I just got off the phone with citibank regarding the credit card. The lady was an absolute Godsend. Just so understanding and told me flat out that she has done this and promised me I would feel SO MUCH BETTER in a couple months when all this is behind us! I really needed to hear it right then!

I got to admit I felt the worse about Citi they were there for us, the only one that didn't change terms, always diligent in service with their concierge service and credit requests. After we told them we were going to file they didn't bother us and left us alone. But as we know its all or nothing and they fell with the rest. I hope that someday i can do business again with them but I know they black list nut for me they were A OK

[DebtStinks]

We have homes down 60-70% in value from the peak in our area. I'm sure we'll see things drop a bit more once they stop pumping buyer tax credits into the market. But we are low enough now that I'd buy today if we could get a mortgage.

[DeadManCrawling]

We are seeing home prices down as much as 70-80% in our area, though the worst drops are confined to specific neighborhoods and zip codes. These seem to be mostly places that were lower income neighborhoods before the boom and, unsurprisingly, high-end exclusive subdivisions built at the height of the boom.

For the last couple years, we saw a lot of investors buying them up. They could rent them out for a price that made sense and easily paid any loan they had. That is shifting a bit now, and I suspect there are homes that have dropped a lot but still cannot generate enough rent to cover a mortgage.

The rental market here was going nuts for a couple years, due to all the foreclosures. But, SO MANY rentals came on the market, we are now seeing rents drop in price, which is exacerbating the foreclosure market. One big, nasty circle.

I think we are getting to the crux of the problem now, and will be very interested to see what happens to these properties. I am specifically watching homes that were foreclosed but cannot be rented at this time for enough money to pay back an equivalent mortgage, given current rental prices.

I suppose this should lead to further price drops, but it is hard to see how it could drop any further. You can get a livable house here for 15k, and a nice one for 30k. Get over 50-60k and you start seeing signs of luxury. If you can go to 100k, you get immaculate, large homes with pools, 2 fireplaces, 3 car garages, and 3000 sq foot. These places were selling for 400-600k 4 years back, and were brand new.

Strange days, and heavy tidings for our local market.

[DebtStinks]

Ya it's pretty crazy to see the prices. A home down the block sold for 400k about a month after we bought ours and it just sold as an REO for 127k. I'd of grabbed it for that price in a second. Our old mortgage payment was like $2,400 a month and we just keep sticking that in the bank... going on 13 months so far. If BofA let's us stay here much longer rent free we can just buy it back for cash... haha.