Confused on the house we filed CH7 on.

[Confused33]

Howdy!

I filed CH7 and was 100% discharged in 4/09. We owed a home at the time which was included in the CH7 and we later short sold it in 12/10.

I am working towards purchasing a new home and the mortgage consultant asked me what happened with the house today. I told him it was short sold and he says that it shows on the report as IIB. (I knew this, but am trying to be transparent.)

So what is it? Was the house IIB or was it short sold?

I'm confused and scared and trying like hell to get out of this apartment I'm living in. LOL!

Thanks!

[mountanddo]

I told him it was short sold and he says that it shows on the report as IIB. (I knew this, but am trying to be transparent.)

I'm not really sure what this means, "trying to be transparent" but if you are looking to get a new mortgage it's in your best interest to be totally up front with the mortgage consultant. You don't want all that transparency to become visible at your closing right before they hand you the keys.

[tobee43]

the IIB means it was included in your bankruptcy. even if you did a short sale after it doesn't change that fact. so it's actually both, however, the short sale doesn't mean anything for your credit standing. some people are of the belief that once your name is off the deed, which transpired during your short sale, it is 2-3 years (depending) from that date on you will be able to be approved for a new mortgage.

i really don't know if that's true or not, i do know a few have been successful, although it was a trying experience with USDA for a mortgage.

best of luck to you!

[Confused33]

I'm not really sure what this means, "trying to be transparent" but if you are looking to get a new mortgage it's in your best interest to be totally up front with the mortgage consultant. You don't want all that transparency to become visible at your closing right before they hand you the keys.

Transparent means I'm not hiding anything. I knew it showed on the report only as "IIB" but I also knew I sold it under a short sale. I disclosed both of those facts.

[Confused33]

the IIB means it was included in your bankruptcy. even if you did a short sale after it doesn't change that fact. so it's actually both, however, the short sale doesn't mean anything for your credit standing. some people are of the belief that once your name is off the deed, which transpired during your short sale, it is 2-3 years (depending) from that date on you will be able to be approved for a new mortgage.

i really don't know if that's true or not, i do know a few have been successful, although it was a trying experience with USDA for a mortgage.

best of luck to you!

Thank you for your feedback.

The loan originator's concern was that the fact that it was actually a short sale would hinder my application further. What I didn't understand was how that would be the case if it was included in the blanket of the bk.

I guess we will just trudge forward an ill follow up.

[tobee43]

Thank you for your feedback.

The loan originator's concern was that the fact that it was actually a short sale would hinder my application further. What I didn't understand was how that would be the case if it was included in the blanket of the bk.

I guess we will just trudge forward an ill follow up.

so many of these "loan originators" unfortunately really have no clue whatsoever. i'm certain the short sale doesn't show up on your credit report and any loan should be based on your credit score and certainly something that didn't or doesn't show up? wow.

we recently were attempting to get our daughter a mortgage and she sold her last home with a land contract, well the loan originator in that case didn't even know what that was!!! and THESE are the people we entrust our credit lives too....LOL!! scary stuff!

good luck finding a mortgage, it will happen, just hold tight! best of luck to you and keep us posted!

[CCsAreEvil]

Please respect my ignorance, but what did you gain from doing a short sale since it was already IIB? Is it to not have a foreclosure on your record? But then again, it's not clear to me if a foreclosure record gets posted to one's credit report if the property was IIB already.

[ugghh]

From my understanding if you let your home foreclose (whether you filed BK or not) you have to wait 3 years before you can buy another.

What appears to be the problem with letting it go into foreclosure is that some banks take their time and foreclosure does not happen for a couple of years. Your 3 year clock does not start until the house has been foreclosed on.

[tobee43]

From my understanding if you let your home foreclose (whether you filed BK or not) you have to wait 3 years before you can buy another.

What appears to be the problem with letting it go into foreclosure is that some banks take their time and foreclosure does not happen for a couple of years. Your 3 year clock does not start until the house has been foreclosed on.

so it's been said! i'm still awaiting someone who really had to do that.

i really doubt that any bank is going to say ok...let's see now, you filed bk 10 years ago and then (your old bank), never foreclosed on your house you surrendered so, let me see, now, you will never get another mortgage, even though in these past 10 years since your filing you have a nice 820 credit score, however, since the bank did not do their due dilgence we aren't going to let you have a mortgage.

ugghhh..i'm not saying you're implying that at all, i 'm just saying someone show me who was rejected solely due to this fact of three years from a foreclosure date being involved, since as i have pointed out before different states have different statues of limitations and some may chose to never foreclose on a home, whether a person when bk or not.

i do agree that it would be 3 years from a bk filing. and i will believe the later if and when i see it actually happen. i do believe with all this mish mosh no one really knows what's going to happen or if the banks will begin lending again. i guess the future will really and truly hold the answer.

[LadyInTheRed]

From my understanding if you let your home foreclose (whether you filed BK or not) you have to wait 3 years before you can buy another.

What appears to be the problem with letting it go into foreclosure is that some banks take their time and foreclosure does not happen for a couple of years. Your 3 year clock does not start until the house has been foreclosed on.

And I suspect the same is true of a short sale. It may not show up on your credit report, but it is a public record. The only person who can say for sure how the short sale following BK effects eligibility for a new mortgage is the underwriter.

[ugghh]

so it's been said! i'm still awaiting someone who really had to do that.

i really doubt that any bank is going to say ok...let's see now, you filed bk 10 years ago and then (your old bank), never foreclosed on your house you surrendered so, let me see, now, you will never get another mortgage, even though in these past 10 years since your filing you have a nice 820 credit score, however, since the bank did not do their due dilgence we aren't going to let you have a mortgage.

ugghhh..i'm not saying you're implying that at all, i 'm just saying someone show me who was rejected solely due to this fact of three years from a foreclosure date being involved, since as i have pointed out before different states have different statues of limitations and some may chose to never foreclose on a home, whether a person when bk or not.

i do agree that it would be 3 years from a bk filing. and i will believe the later if and when i see it actually happen. i do believe with all this mish mosh no one really knows what's going to happen or if the banks will begin lending again. i guess the future will really and truly hold the answer.

Yep... I can not quote anyone, I am just reading and that is my understanding. CCsAreEvil please know that every situation is different. I hear a lot of people talk about buy and bail I thought they were going through that process due to not being able to obtain a mortgage because their existing mortgage is not satisfied. This was due to them doing the pay and stay and the house not going through the foreclosure.

I hope it is easier that I thought it was for the people who did not reaffirm. I just thought that they were not able to obtain a mortgage until 3 years after Foreclosure.

[tobee43]

Yep... I can not quote anyone, I am just reading and that is my understanding. CCsAreEvil please know that every situation is different. I hear a lot of people talk about buy and bail I thought they were going through that process due to not being able to obtain a mortgage because their existing mortgage is not satisfied. This was due to them doing the pay and stay and the house not going through the foreclosure.

I hope it is easier that I thought it was for the people who did not reaffirm. I just thought that they were not able to obtain a mortgage until 3 years after Foreclosure.

yes, i'm hearing and reading the same exact thing. i'm just not knowing anyone it happened to. i know people have been rejected because of the bk, but not rejected because their old house never foreclosed. actually, when we think about it, a bk stays on a credit report for 10 years while a foreclosure it's 7 years.

but, i do want to mention we have a 100% owner financed property and circumvented the banks completely. i know, i know, owner financed properties are not a dime a dozen. is the house of my dreams NOPE, but it's a nice place that we will be always be able to afford. and, may i add the ONLY box ever coming out of this house will have ME it it. but this is called living within ones income means .

[ugghh]

Tobee, your story is well documented and has opened my eyes to other possibilities. I do get nervous when I think about giving someone else my money. If something happens to that person (files BK, dies, does something unethical), I wonder what happens with our contract... I would be interested in a land contract because I think the seller and the buyer benefit the most, but I would have a real estate lawyer going over that contract with a fine tooth comb.

I am able to purchase a home through more traditional means as of 9/2012 but I am not going to rule out land contracts.

[tobee43]

Tobee, your story is well documented and has opened my eyes to other possibilities. I do get nervous when I think about giving someone else my money. If something happens to that person (files BK, dies, does something unethical), I wonder what happens with our contract... I would be interested in a land contract because I think the seller and the buyer benefit the most, but I would have a real estate lawyer going over that contract with a fine tooth comb.

I am able to purchase a home through more traditional means as of 9/2012 but I am not going to rule out land contracts.

yes, one must be extremely cautious when entering into any time of agreement and the contracts must be solid. with our personal situation i drew most all the contracts and worked with the sellers atty. so actually it was my contract which was agreed upon. if you have read some of my other posts/threads dealing with this, then you also know that i am a great believer in land contracts ,and although drew up that contract for our daughter we did have a broker handle the deal and is also making a percentage to manage the contract. (that way one is not personally responsible for dealing with the buyer directly).

i'm glad you will be in a position in sept to purchase if you so chose. i'm just one happy camper that i don't have to give the greedy banks the money

[Logan]

so many of these "loan originators" unfortunately really have no clue whatsoever. i'm certain the short sale doesn't show up on your credit report and any loan should be based on your credit score and certainly something that didn't or doesn't show up? wow.

we recently were attempting to get our daughter a mortgage and she sold her last home with a land contract, well the loan originator in that case didn't even know what that was!!! and THESE are the people we entrust our credit lives too....LOL!! scary stuff!

good luck finding a mortgage, it will happen, just hold tight! best of luck to you and keep us posted!

Tobee, keep in mind that most 'loan originators' just get loans for purchases and/or refinances and don't see much else. If they've never seen a land contract it doesn't mean they don't know what they're doing, it just means they've never seen it. Same with a BK. If a loan originator has never worked with or has limited experience with clients who ave a BK they won't know much about it and you're probably better off finding someone else who has the kind of experience you need.
I'm sure you've traveled on airplanes. A Southwest Pilot flies a 737 and does so very well but put him in an Airbus 320 or a 747 and it's a different story. Until he has proper training and experience flying those other airplanes you wouldn't want your family flying with him but in a 737 you're perfectly safe.

When I went shopping for a home loan one of the first questions I asked was if you've worked with people with recent BK's.

Logan