What happened to the house when included in Ch.7 BK??

[dp1969]

I know this question has come up but I'm asking again.
We are 3 years post BK and currently pre-qualified for and FHA loan. We are in the process of running the pre-approval but one question that has come up with my broker is...what happened to our previous home that was IIB? He stated to us that, 'The current credit report doesn't make any reference to a foreclosure which, since it's a public record, should show up if one occurred." He asked if it was a short sale or deed-in-lieu. I haven't a clue what happened. We simply stopped making the payments, filed for BK and walked away. We were declared no assets and discharged in 2008. I know that in 10/08 it was listed for sale so I'm assuming a bank or reality company purchased it. We never got any notice besides the late notices from the mortgage company. We had a 1st and a HELOC on the home and both were IIB. Now that we've placed an offer on another home and are in the process of him doing the pre-approval, what could arise?

[AngelinaCatHub]

Well, you can either look up online if available, or go to the records in your county. Your deed will show and any transfer. If your deed has not been transferred it may be due to the vast amount of foreclosures. It could have been and if so, get certified copies and present them to your broker.

Remember, Bammy says we are in a recession. Reality states that we are in a depression. So how is Hope and Change working out for you? 'Hub

[dp1969]

Well, you can either look up online if available, or go to the records in your county. Your deed will show and any transfer. If your deed has not been transferred it may be due to the vast amount of foreclosures. It could have been and if so, get certified copies and present them to your broker.

Remember, Bammy says we are in a recession. Reality states that we are in a depression. So how is Hope and Change working out for you? 'Hub

According to Zillow, the house was listed for sale 10/08 and sold on 4/09 (listed as bank owned). Would it take much longer to show in our county? If it's not on the credit report as foreclosure, but IIB, will my proposed lender do a county records search to complete our loan process?

[tobee43]

dp...why is it that it makes any difference. i'm just wondering. if it was surrendered and gone how can that effect what your doing today. or actually my question is to your broker as why, at all it matters?

[Amy26]

Generally, if you include a house in BK and let it go into foreclosure after the BK, it will not show up on your credit report. I only have one public record on my file and no mention of the foreclosure anywhere. The broker would most likely just do a search and find it in the public records. A public record exists for your foreclosure, its just not on your credit report.

You can do an online search... your county may have the records online. If I do a search for my county's website, I can go there and look at the deeds online. That's actually how I found out my home was taken back as well... I never got any notices or anything.

[dp1969]

dp...why is it that it makes any difference. i'm just wondering. if it was surrendered and gone how can that effect what your doing today. or actually my question is to your broker as why, at all it matters?

It's my understanding that we are eligible for FHA financing 2 years after BK but have to wait 3 years from the sale of our home...not from the IIB...from the actual sale to another party. If so, then we could run into trouble when it come time for the bank to approve our FHA loan.

[tobee43]

It's my understanding that we are eligible for FHA financing 2 years after BK but have to wait 3 years from the sale of our home...not from the IIB...from the actual sale to another party. If so, then we could run into trouble when it come time for the bank to approve our FHA loan.

yes, dp, that's also my understanding, it's from the time the deed is actually taken off your name.

in our personal case, that appears it will never happen since it's well over 3 years and the bank has yeto to make a move and in that state the bank has 20 years to remove it, so we are SOL.

we did buy another home, but it was a rare owner 100% financed deal, so no banks were involved at all...thankfully.