Confused....question about forclosure after discharge

[patkatmom]

Hi all - Chase has just sent our house to a foreclosure atty. We were discharged almost 3 years ago and did not reaffirm our first or 2nd mortgage (second isn't with Chase). If our house is foreclosed on, do we have to wait 2 years before we can apply for a FHA loan or since the mortgage is no longer on our credit report will we be able to apply sooner?

Does that make sense? We would like to keep our home for a few more years and are waiting for our reinstatement amount to see if it's feasible.

Thanks...!

[jmanford]

I'm sorry to say yes. We are going through the exact same thing. I have contacted alot of lenders and most of them require 3 years. Foreclosure is a separate event. I am a vet and they are making me wait 2 years from our foreclosure. And, only 1 of the 6 lenders our broker contacted was only requiring a 2 years seasoning from our foreclosure. The rest required us to wait 3 years to use my VA loan. I'm so sorry. I hope it works out for you. Maybe you can find a lender only requiring 2 years.

[patkatmom]

Thanks. Just seems strange that even though we don't technically have a mortgage, a foreclosure can go on our report. We should have just given up our home 2 years ago!

[LoveBubble5]

I am about to go through the same thing, and it just sucks. My kids are 5,6, and 7 right now so it is really hard on me because this is the house they've grown up in all their short lives. It is disheartening to hear about this, but I guess I'd rather know now than get more surprises.

[tobee43]

I am about to go through the same thing, and it just sucks. My kids are 5,6, and 7 right now so it is really hard on me because this is the house they've grown up in all their short lives. It is disheartening to hear about this, but I guess I'd rather know now than get more surprises.

it's really important to try and think outside the box nowadays when attempting to buy a home after a foreclosure and bk.

do a land contract....owner finance!

these alternatives really work. we purchased a home and closed last feb. we offered a bit more than the owner asked to make it interesting for him and he accepted. we did have a large down payment ...well really not that large as the house was not very expensive compared to our 700k old house we used to live in. anyway, here we are, now putting every dime into this owner financed mortgage so we should be paid off we hope within 48 months. went completely around the banks.

now, on the other side of the coin, our daughter could not sell her home and we did a land contact on that...so someone is wrapping around her existing mortgage until they can assume it. a win, win!

[jmanford]

it's really important to try and think outside the box nowadays when attempting to buy a home after a foreclosure and bk.

do a land contract....owner finance!

these alternatives really work. we purchased a home and closed last feb. we offered a bit more than the owner asked to make it interesting for him and he accepted. we did have a large down payment ...well really not that large as the house was not very expensive compared to our 700k old house we used to live in. anyway, here we are, now putting every dime into this owner financed mortgage so we should be paid off we hope within 48 months. went completely around the banks.

now, on the other side of the coin, our daughter could not sell her home and we did a land contact on that...so someone is wrapping around her existing mortgage until they can assume it. a win, win!

And they just offer owner financing everywhere today right? Where may I ask can you buy a house that can be paid off in 48 mo? Maybe if you bought a mobile home in Detroit I could see it. Please explain the details. I would be real leary of agreeing to any contract with an owner if you didn't have an attorney look at it first.

[tobee43]

And they just offer owner financing everywhere today right? Where may I ask can you buy a house that can be paid off in 48 mo? Maybe if you bought a mobile home in Detroit I could see it. Please explain the details. I would be real leary of agreeing to any contract with an owner if you didn't have an attorney look at it first.

no, of course not. one must look and search for the correct opportunity to cross one's path. since i have handled numerous closings myself and also have handled land contracts myself as well as for atty's i worked for, i drew up all my own paperwork. we moved to florida, just in time to pick up a property that a owner owned outright and wanted out. prices were extemely inexpensive compared to what prices were were used to, well under 100k. 4 bedrooms, 2k sq feet new pool and screen...very liveable. we took out a "family" loan for the down payment, although we had saved after two years a chuck of money. we were renting, used the first year's rent toward the down payment as well. we knew the owners asking price offered more and asked him to hold the mortgage, which he did at 5% @ a 30 year payout. i worked with his atty on the paperwork and we closed quickly and easily without banking problems.

i also drew up the land contract for my daughter in another state. no problems there either. very legal. and, as i said under those particular circumstances has worked out wonderful, she couldn't sell up north, and no one can buy, this was an answer to that problem. not for all, however, we will be seeing more and more creative ways to finance as the banks are to tight with their money.

in the meantime we put every dime other than emergency money into the mortgage. and yes, it will be paid off in approx 48 months, maybe sooner.

i'm not saying there is a deal around the corner for everyone, we were on the hunt and again just found the right opportunity and took advantage of it.

i'm now beginning to live between calif and florida, (for reasons too long to go into), and i'm certain in calif those opportunities are really far and few between, it's one of the reason's we purchased where we could afford to live for the rest of our lives without worry. however, also, it was right time in our lives to make such a move. many people cannot or are not able to make this type of life change. it's understandable.

[LostItAll2]

TB43, it does sound like you were very lucky with your search. I can't move out of state due to our jobs right now. We would love to move somewhere cheaper, but that is not possible for a very long time. We have children and just can't pick up and leave. Hope we can do what you did someday.

This information is very important to remember to think about ways around the banks. Thanks!

[FairyPoor]

What is a land contract. Is that buying or selling a house?

[tobee43]

this is from one of my old posts after i we had done land contract for my daughter...just so i don't have to type it all, i'm copying and pasted it from that post......http://www.bkforum.com/showthread.ph...and+contracts: cheating i know...LOL!!! here's an explanation of a land contract:

land contract deals many people don't know what they are....and they are a sure target for future buyers...at least i think so.... just wrap around someone's mortgage....absolutely...a way around the system. my daughter did it with her house NOW....since she moved out of state and could not, (of course) sell her place.

i know it does get a bit confusing.....so here's some general info if anyone wants:

"Land contracts were very popular in the late 1970s and early 1980s. Back then, installment sale contracts, sometimes called contracts for deed, offered more attractive financing terms over the higher rates and rigid qualification standards of institutional lenders.
Land contracts began to disappear when loan requirements softened and rates dropped below 8%. But they have not vanished all together and, in fact, tiptoed back into the market in 2006."

What is an Installment Sale Land Contract?

Land contracts or contracts for deed are a security agreement between a seller, called a Vendor, and a buyer, called a Vendee.

The Vendor agrees to sell a property by financing the purchase for the Vendee.

The Vendor retains legal title and the Vendee receives equitable title.

The owner-carried financing can include an existing mortgage balance or the property can be free and clear.

Upon payment in full, the Vendor hands the Vendee a deed to the property.
All-Inclusive (Wrap-Around) Land Contracts

Wrap-around contracts contain an existing mortgage.

The Vendee makes one payment to the Vendor.

Upon receipt of the payment, the Vendor pays the underlying lender's payment and keeps the rest.

If the existing mortgage has a lower interest rate than the rate on the contract, the Vendor earns extra interest on money that does not belong to the Vendor.
This is how it works.

1.Say the sales price is $100,000.
2.The Vendee puts down $10,000.
3.The Vendee agrees to make payments on $90,000, bearing interest at 6.5%, payable $567.
4.The existing underlying loan is $50,000, payable at 5% interest with a payment of $268.
The Vendor earns 6.5% interest on $40,000 of equity, PLUS 1.5% interest on the existing mortgage of $50,000 and pockets $299 a month."

[jmanford]

no, of course not. one must look and search for the correct opportunity to cross one's path. since i have handled numerous closings myself and also have handled land contracts myself as well as for atty's i worked for, i drew up all my own paperwork. we moved to florida, just in time to pick up a property that a owner owned outright and wanted out. prices were extemely inexpensive compared to what prices were were used to, well under 100k. 4 bedrooms, 2k sq feet new pool and screen...very liveable. we took out a "family" loan for the down payment, although we had saved after two years a chuck of money. we were renting, used the first year's rent toward the down payment as well. we knew the owners asking price offered more and asked him to hold the mortgage, which he did at 5% @ a 30 year payout. i worked with his atty on the paperwork and we closed quickly and easily without banking problems.

i also drew up the land contract for my daughter in another state. no problems there either. very legal. and, as i said under those particular circumstances has worked out wonderful, she couldn't sell up north, and no one can buy, this was an answer to that problem. not for all, however, we will be seeing more and more creative ways to finance as the banks are to tight with their money.

in the meantime we put every dime other than emergency money into the mortgage. and yes, it will be paid off in approx 48 months, maybe sooner.

i'm not saying there is a deal around the corner for everyone, we were on the hunt and again just found the right opportunity and took advantage of it.

i'm now beginning to live between calif and florida, (for reasons too long to go into), and i'm certain in calif those opportunities are really far and few between, it's one of the reason's we purchased where we could afford to live for the rest of our lives without worry. however, also, it was right time in our lives to make such a move. many people cannot or are not able to make this type of life change. it's understandable.

Glad it worked out for you. I live in California, nothing for 100k here.

[tobee43]

Glad it worked out for you. I live in California, nothing for 100k here.

you got that right..it's still so expensive there. my parents are in the bay area and even in this market their home is still worth over 800k. here that home would be worth about 100k if lucky.

they are getting older so we are thinking about redoing their downstairs and making a place for us to go back and fro..even the cost of labor is so high there...a loaf of bread i couldn't believe it at molly stones $5!! unreal. i really don't know how people live in calif.

[sadandconfus]

How did you find out it was owner financiable? Did it say that on the for sale listing?

[tobee43]

we looked and looked and LOOKED to rent a place with an option to buy lease agreement via a realtor. that's how we found this house. is it my dream house NO...but it's ours and it was almost brand new so no problems, we just decided it was meant to be. where we could afford no matter what, no worries ...and actually i found the taxes this year and they just went down another 600 dollars! makes life even more financially sound for us.

we had the lease and i attempted to exercise the option early by offering the owner more than asking price. came down with a handsome down payment and he accepted. i know this does not happen every day, however, with the market the way it is, there are still some sellers that actually own the homes they are attempting to sell and are in the same position as this owner.

[kleinkp]

Is the foreclosure date the date win the house is sold at auction by the bank or however they sold it?