Mortgage included in ch 7 but home foreclosed after bk?? 3 year wait for FHA??

[flquestions]

After filing ch. 7 and including my mortgage in the bk, my mortgage company reported the foreclosure that occurred after the bk discharge on my credit. I had to dispute the item with the mortgage company and all three reporting agencies to have to foreclosure removed and it show that the mortgage was included in bankruptcy. Two agencies removed it, one still has the bk listed as well as the foreclosure. I was surprised to hear that the home would still have to be foreclosed on even though it was included in bk and surrendered. Had my attorney explained this to me I would have thought twice about even filing. I was not aware of the three year waiting period for a foreclosure for FHA approval. I just assumed that because I filed ch. 7 that the foreclosure that occurred just so the bank could take the property back would not effect me. In other words I thought the bk would over rule the foreclosure.

I waited the two years post ch. 7 discharge then my husband (who did not file ch. 7) and I began talking to a lender about purchasing a home. He said he thought he would have no problem getting us approved for a FHA loan since it was two years out and our credit scores were where they needed to be. We had a contract on a home, already paid for the inspection, then the mortgage guy said it was not approved in the automated system. He sent it to the underwriter and she picked up on the foreclosure listed by one agency on my credit report (or at least I guess that's where she saw it.) The mortgage guy called and said, "You didn't tell me you had a foreclosure also." To which I replied I didn't I included my home in bankruptcy. I'm also not sure why he didn't see it listed on my credit report, it was there the whole time. He wasn't sure why the foreclosure would be listed, he had to call around to find answers. This is when I was told that I would have to wait three years if I had a foreclosure, even if it was a result of bk. So we were not approved, heartbreaking to say the least. All I've ever heard was wait two years.

My question is, do you have to wait three years from the discharge of bk or three years from the finalization of the foreclosure. It doesn't seem fair to have to wait for the bank to get around to foreclosing on a property that you have already surrendered.

Also, is this time frame subject to individual lender approval?

[dspii]

From what I understand on this confusing subject is 3 years from the date title was taken out of your name. In some cases I have heard it can be years because the bank doesn't take immediate action and foreclose promptly.

[Ugh07]

Three years after the date the title is taken out of your name. Foreclosure is the most often used mechanism for accomplishing this. It used to be foreclosures happened fairly quickly and this was a non-issue, but in recent years with the court logjams it has turned a 3 year waiting period into often much more.

[Ugh07]

Also, the Loan Officer should have caught this from Day 1. There are still many mis-informed or careless Loan Officers out there. When looking for a Loan Officer I would recommend interviewing at least 3. That sounds time consuming, but especially for those of us with past credit issues, it is important to get someone who knows what they are doing.