We closed on house

[jpracer37]

Just wanted to let everyone know that my wife and i closed on our new house this past friday. Here was our situation. BK7, everything including mortgage was discharged. We did not reaffirm our mortgage. We never missed a payment on mortgage and was current when all paperwork went thru UW. It seemed the BK7 was never an issue,we did have small things come up while waiting to close but nothing of BK ever came about. When we closed on new house we were 3.5 yrs out of BK, seems they took the non reaffirmed mortgage as a foreclosure and went 3 ys from discharge date of BK. Nothing was asked about disposition of old home nor that we had to qualify with both mortgages. Now all i need to do is call old lender and sign over old deed. It can be done and everything has to fall in place, and I'm writing this in new home.

[Pjmax]

Congratulations! Encouraging news for many. Thank you for coming back and sharing. Best wishes for you in your new home.

[basketsbears]

Congrats!

So you stayed and paid on your old home until you moved into your new home? So at this point you are just signing the deed over or will they foreclose now on old home? Or, did you sell it? Just curious as we just filed and I am not reaffirming our mortgage, but just wondered what to do if we wanted to ever move.

Thanks!

Lynn

[jpracer37]

Basketsbears, we did not sell. Yes we stayed and paid, in all honesty we thought we reaffirmed but we didnt. Depending on what you read, with our mortgage being included and discharged can be viewed as a foreclosure even though their wasn't one. With that you will have to go 3 yrs out for your seasoning not just the 2 yrs for a BK7. Alot will be how U/W interprets everything. I think we had some one looking out for us and we were truly blessed with the outcome. I know alot of people will decide to leave once they go thru BK7 and have mortgage discharged and not reaffirmed, but we didnt. We had to do a conference call with old lender to show that we were current and all, so I do believe that helped. But like I said in my post, I had less of an issue with BK and how old mortgage was discharged compared to small issues that came up with home inspection and payroll stubs

[doodlebugger]

Congrats jpracer37! I was just coming to post that we got a USDA preapproval today. We filed bk7 and was discharged in Feb. 2006, did not reaffirm our mortgage, stayed and payed until last year. We stopped paying a year ago. USDA is going to accept bk7 discharge date instead of a foreclosure date (which we do not have yet because we are living in the house and they haven't foreclosed). It was a challenge to work it all out, but we finally found a lender and investor who both did not have difficult overlay guidelines. Not out of the woods yet, but I hope ours has a happy ending like yours does! Congrats again on the new house!

[LadyInTheRed]

Congratulations, jpracer37! Thank you for sharing your experience. I think you are the first person on BKforum who has reported closing on a new mortgage before foreclosure on a discharged mortgage. Enjoy your new home!

doodlebugger, good luck to you! I hope you will be the 2nd person with the same good news. Please do keep us updated.

[basketsbears]

Thanks so much for your post! It is very encouraging that lenders are using the BK discharge date, and not necessarily the foreclosure date. My husband's old home will be foreclosed on someday -BOA- so when our BK discharges next month, hopefully we can go from there.