timeline for mortage after ch 7 discharge

[psx402]

how long do i have to wait for a new mortage for another house. I included my home in the ch7 and was current and still am. I did not reafrim the home, called a ride thru or a pay and stay. My home is currently under water about 70 grand and would reguire about 30 - 50 grand of investment to bring up to market level. i want to walk away from this house as soon as possible. renting is not an option seeing i have 5 children. my credit score is 670 and going up fast track!

[screentest]

psx402,

Your looking at 3 years after the foreclosure is complete and the home is transferred out of your name. The clock starts running once the transfer is complete.

Here are the current time lines from hours of research and calls:

Chapter 7/ No foreclosure

[screentest]

Sorry, that thing posted while I was typing.

psx402,

Your looking at 3 years after the foreclosure is complete and the home is transferred out of your name. The clock starts running once the transfer is complete.

Here are the current time lines from hours of research and calls:

Chapter 7/ No foreclosure 2 years (VA/FHA)

Chapter 7/ Foreclosure 3 Years (FHA) From foreclosure finalization date.

Chapter 7/ Foreclosure 5-7 years (Conventional Fannie/ Freddie)

The FHA "new mortgage" time lines are also the same for a short same or a DIL so this is really a minimum wait guideline.

Renting is the only way to wait it out until qualified. Why cant you rent?

ST

[psx402]

Your saying I can't get another mortgage until I let this one go to foreclosure? Can't I get another mortgage then walk away?

[screentest]

Your saying I can't get another mortgage until I let this one go to foreclosure? Can't I get another mortgage then walk away?

In essence, no.

Unless you can qualify for both mortgages(even discharged mortgages) then you will be disqualified at underwriting or even origination. Lenders/underwriters are well aware of "buy and bail" and have put procedures in place to stop this from happening. Your current home must be out of your name and title transferred before a new mortgage will be granted or you must qualify with both homes.

The only other way is to show that your current house has been rented out for at least a year, the rental income shows on your tax return and even then underwriters will only allow 80% of the rental income to be used against your debt to income ratio.

I have looked into this extensively as I had thought this would be my alternative into a new house as well. I was stopped at every turn. I just have to wait out the timeline and when I'm ready, try again.

ST

[siamese]

Another reason more BK'ers will resort to private lending options. FHA and the govt need to stop playing the "prison warden" role and start acting like a true bank who is only interested in making money..not trying to punish. The three year wait post foreclosure makes sense if title was transferred at the day of discharge but not two years later when the bank "gets around to it." The longer this nonsense lasts, the more shadow inventory will build and eventually collapse the market.

Factoring in the "punitive" behavior of mortgage lending in regards to buy-and-bail and the demographic age distribution in this country, high unemployment and little to no income growth for the average family, housing is not going anywhere for a looooong time.

Hang in there!

[screentest]

I couldn't agree with more! I have been saying this for years. The banksters would rather lend to the waitress at Denny's who makes $8 dollars an hour (no offense) and set her up for the next wave of foreclosures than to qualify or even help those of us in homes that can pay for their house, just not their ridiculous mortgages!

I am happy the banks have no influence over me anymore!

ST

[dspii]

We can only hope that the rules change for the short sales and foreclosures. Hey I filed for bankruptcy, I don't expect it to be easy, I just don't want to be punished for the mortgage mess. I can't sell my house in Ohio because the values have dropped below what I paid for it 13 years ago...that's just nuts. In my case I bought it the old fashion way, decent credit, a down payment and a stable job.....and I didn't get my loan at a strip mall mortgage company. And yes I'm bankrupt....

I moved to Nevada for a better life for my family and the only way I can unload it is to short sell it or foreclose, because as I said, it is currently valued at less than I paid 13 years ago. I'm not the victim of a resetting interest rate, payments higher than I could afford or those other shannonogans that crippled the market. I got a better job and my family is being punished for making our payments ontime for 13 years.......

There was once a time when your home was a safe investment, a place where you could generate some sweat equity and sell it to move into a bigger home in the burbs. What the hell happened....they found a way to get into the only safe investment for middle America, the place we called home. I guess they decided it was easier to take from us. Sorry for going postal........it just pisses me off that real estate and our home was violated by the greedy....caring not for the people it affected, only wanting higher returns....like they didn't have enough money already........

[Brokester]

I couldn't agree with more! I have been saying this for years. The banksters would rather lend to the waitress at Denny's who makes $8 dollars an hour (no offense) and set her up for the next wave of foreclosures than to qualify or even help those of us in homes that can pay for their house, just not their ridiculous mortgages!

I am happy the banks have no influence over me anymore!

ST

While the "waitress at dennys" makes 6.00 dollars an hour I am sure she pays most of her bills on time and hasn't declared chapter 7 or 13 to help her escape an "underwater" home or massive credit card debt! Sometimes I think that we forget the ramifications of filing BK. I filed last year and I recently bought a new car with a disgusting interest rate but I realize that I will be punished until the "Banksters" see fit. You see we cant just file BK and expect everyone to treat us as credit worthy. The banks will milk this until the end because they know we are desperate for credit and well pay anything for a "taste". I want to rebuild my credit I dont have a foreclosure or house IIB and it makes me angry too. Why do I have to wait 2+ plus years to buy? Believe me there will be a second wave!

[siamese]

So long as the taxpayers approve of bailing out the banks, this type of punishing behavior will continue. As I eluded to in a prior post, the population demographics and median household income for this country don't fit well with housing appreciation. With housing prices falling, who is in a rush to buy? As for the banks..Let Them Eat Cake!

[nodebtnomore]

I am not desperate for credit. I intend to PAY CASH for every single thing we buy, from discharge on. We IIB our house, we have not paid since Dec 2009 and still no foreclosure, saved every dollar, paid off both 2009 model cars (nbot reaffirmed but now owned) and next month will have enough to pay off our very last debt - my husband's student loan.

We will buy another house at some stage... we found out we are eligible for a VA loan (never knew - always had "prime" mortgages).

The culture of this country has fed credit as the drug of choice to Americans. The people are ADDICTED. It takes a long time, and it takes patience but you really do need to save up for things you want. Banks and credit providers SUCK.

They suck so much that since our discharge I opened a Share trading account and have been steadily buying up stock in sub-prime lenders ie: rent a center, check cashing corporations, etc. Those stocks are doing great..