FHA : "Ignore" Foreclosures, Bankruptcy, Short Sales?

[tobee43]

I don't know that this will really help my situation. We are past the two year bk7 discharge however Wells Fargo still has not FC on our house. We have been renting for almost 2 years and would love to get back into the market. Our mortgage is also an FHA mortgage so I cant imagine that the FHA would be interested in guaranteeing a loan for me.

this is where is gets confusing. we are in the same exact boat as you Getting, right up to the the fact our old mortgage was an FHA. whereas, the bk was done, finished, discharged and closed 4 years ago yet Chase hasn't moved on the foreclosing on our old property. so, i really don't think it matters about a foreclosure AFTER it's a mortgage you already listed and was discharged. or actually, i don't see the sense in it at all. in our situation, the bank may never foreclose, so there will be no foreclosure and IF they do, it's after the discharge of the debt. at this point what is chase going to do do, finally foreclosure or not and then put it on our records of the foreclosure. we would fight it if it showed up, although we are not looking for a mortgage anytime soon.

we are however wanting to co-sign for a mortgage soon. we are hoping the fact that we should own this house outright by then as long as a decent savings and another down payment will be helpful although the mortgage payment is actually so small compared to our income. i keep getting mail now that we qualify for a mortgage and should take advantage of the market, but personally, here in florida, i don't know anyone that's lending, even with good credit. rules and more rules...they apply "rules" whenever they feel like it.

true story of someone with NO bk PeFECT over 800 FICO over 20% down, got a closing date and two hours before ask for a co-signer .... they actually got one, so now the lenders says NO..we what TWO co-signers...mine you, these people have perfect credit, great jobs, the whole package.by the way they got yet ANOTHER co-signer and again at the last minute it was a no go.

these lenders make up the rules as they go. as jb has pointed out it's just hard or difficult to get a mortgage today period. once you have met on criteria the lender will ask for another and so on and so forth.

we are still hoping that soon we will be able to co-sign due to our income being finally decent enough and this house almost being paid off. although they don't really care about assets anyway...another problem in banking today unless you have millions and then you don't have to worry about it at all. all we can hope for is the banks will loosen up their guidelines and start moving some of their inventory before we literally become a 'ghost" country.

[pathfinders]

Hi Tobee43 yes correct it or chase can not put a fouclusure on your Report as long as the Mome was IBB. if that would ever happen fight it: Your situation is like ours as well WF did a DIL 1 year ago,, finally but have to wait 2 more years period FHA or at that pint conventional... unless they lossen up some timelines. Maybe get a Attorney to force Chase do take it back, You know if anyone gets hurt on your Property ( title is still in your nemse you can be sued and it would be Post discharge and you are on the hook.

[tobee43]

Hi Tobee43 yes correct it or chase can not put a fouclusure on your Report as long as the Mome was IBB. if that would ever happen fight it: Your situation is like ours as well WF did a DIL 1 year ago,, finally but have to wait 2 more years period FHA or at that pint conventional... unless they lossen up some timelines. Maybe get a Attorney to force Chase do take it back, You know if anyone gets hurt on your Property ( title is still in your nemse you can be sued and it would be Post discharge and you are on the hook.

well, i would argue that point since chase has taken over our property 4 years ago, signs posted enter at your own risk, no trespassing etc. (that is enough in the state our property is in) not saying someone who got hurt on the property wouldn't attempt to sue, but they are trespassing which in most states is against the law. i'm not worried about the fact the title is still in our names as it is clear the bank took possession and i have yet to see any state, local or federal case where a case held up on a surrendered premises and was sued by someone and won. again, the banks changed the locks, we posted and i'm just not worried. the mortgage is listed as IIB balance 0.

we have tried everything and the fact remains in the state we own the property the statue of limitations is 20 years, so chase doesn't have to do anything...actually ever. they can just sit on it year after year and we can't force them to do anything. besides the fact that they are not foreclosing for one of only a few reasons, first we think that property when we re-fi'ed was picked up approx 7 months after the re-fi by chase and they don't have the proper paperwork to foreclose. or secondly, because the house is literally "underwater" REAL water, they know they can never resell the house period. they would be best off to just knock it down. i have a friend in that area in the real estate and construction business over 30 years and she said she has never seen anyone's house handle the way ours is being handled. but, we can't do a thing.

[pathfinders]

Wow Tobee that is just not right for chase to take it back, As you say they have 20 years and looks like they will just take there time:

[tobee43]

Wow Tobee that is just not right for chase to take it back, As you say they have 20 years and looks like they will just take there time:

actually we wish chase would do something more. while technicality i understand the house is still in our names. chase will not do a DIL ...nothing and as i stated in that state they have 20 years to do or not to do what they want.

we are hoping to co-sign on a mortgage within the next 1 or 2 years in another state. the last time we looked into that the lender said that's just 2 years to be able to be a co-signer after a bk. by that time, this house should be paid off. it's not on any credit report, though, because it's owner financed, but at least we can list it as an asset and just have to list the taxes and general expenses as well as our FICO scores are now in the 700's. i still think TODAY that wouldn't be enough, even with a good down payment. we shall see, i'm not holding my breath! that's for certain.

[mom2three09]

If these changes to FHA really do happen they may be a blessing to my husband & I. We IIB our current home (FHA) in 2009. Since that time we have stayed and paid. We have re-established our credit and scores are nearing 700 now, but ofcourse we aren't able to get a new loan as long as we have this home still in our name. Am I understanding these "possible" new changes to FHA to mean that for people like me and my husband who are 3 yrs post discharge that we may be able to buy another home very soon?? Or do we first need to get our current home out of our name by either foreclosing or SS?

[justbroke]

If these changes to FHA really do happen they may be a blessing to my husband & I. We IIB our current home (FHA) in 2009. Since that time we have stayed and paid. We have re-established our credit and scores are nearing 700 now, but ofcourse we aren't able to get a new loan as long as we have this home still in our name. Am I understanding these "possible" new changes to FHA to mean that for people like me and my husband who are 3 yrs post discharge that we may be able to buy another home very soon?? Or do we first need to get our current home out of our name by either foreclosing or SS?

You didn't have an actual foreclosure, so the 3 year rule doesn't apply to you. However, you'd need to sell the existing home at or around the time you close on a new home... just like most people do when they own a home and purchase a new home.

[tobee43]

i heard it here and there...but the way i understand it, not that this happens in REAL life...is it's 3 years after a foreclosure and 2 years of a BK.

there are other ways, like a nice big down payment and try to go conventional or secure the loan somehow. they USE to that in the "olden" days. but i don't think we are going see things moving for a bit more with these lenders.

[mom2three09]

Selling our home isn't an option since we are underwater -- not by a lot but still do not have the funds to bring to the closing table. How is it that these new rules that may take affect in a few months would not get us out of this house and into another home but it will if we had allowed the home to foreclose?? That makes no sense. If that truly is the case then we will just stop paying and let BofA foreclose -- and then buy again using FHA (this ofcourse can only happen if FHA really does change thier rules). Honestly I will be very surprised if the rules change.... too good to be true IMO

[justbroke]

It would be interesting if they actually waive the foreclosure rule.

[DC73]

Thanks for the answers. I guess my whinning about them not foreclosing for two years is nothing compared to the other person who Chase might never file the paperwork -- I could not imagine waiting 20 years. So now I guess since they are now just starting the process, I'll need to wait at least another 3 years after the title is all removed. Thank you for clarifying that. I guess we can continue to rent a bit longer. Thought about land contract or rent-to-own since most properties are empty and cannot sell, but they want way too much for the rent - it seems way over what they pay in mortgage and taxes, so they will just continue to sit on the market. I'll keep my traditional rent and save for a downpayment later on.

But I also understand that they cannot place it on our credit report, correct? I'll keep a watch on it. Thanks!

[tobee43]

i have heard sometimes after a bk was already done and the foreclosure AFTER it's not suppose to be on your credit report, since usually you're mortgage is listed as IIB and unless you had the foreclosure prior to your filing. when and if it does show up it can be fought and removed.

but again, i don't really know since i'm that person who has Chase

and all this talk about one's name having to be off of one property to own another i'm not buying it maybe for an FHA ok. but we will see.

[freeatlast09]

and all this talk about one's name having to be off of one property to own another i'm not buying it maybe for an FHA ok. but we will see.

There does seem to be a lot of different opinions and information out there. I'm with tobee - it's crazy to have to wait for the foreclosure when the mortgage was IIB. So... going by those rules, if the bank takes 5 years after discharge to foreclose, you effectively have to wait 8 years for FHA? or in tobee's case, wait 20 years + 3 so no FHA for 23 years?

I'm not advocating the approval of mortgages for those who aren't qualified, but how in the world will this market ever get moving again? Banks have huge shadow inventories and getting a mortgage is next to impossible for most people so we could be stalled for quite some time.

Under the first sticky in the mortgage after bankruptcy section there are several posts from 'marcer' who is a mortgage broker. He hasn't posted since May, but this is what was posted in a conversation:

Mortgage included in discharge requires 2 years only. Technically, you could have started pursuing fha financing 07/2011. You do not need the 3 years.

Yes, You would be required to show proof of either rental or mortgage history. The fact that you've remained in the same home which you discharged through chapter 7 is puzzling. Why did you?

All lenders will require re-established tradelines post bk. For limited credit post bk, FHA will allow for alternative tradelines from two groups.

Group1: would include---pay here auto loan. Rental history documented by either 12 mos. cancelled checks or VOR from 3rd party management company and others

Group 2: would include ---utility reference, insurance reference and others

Need at least one group 1 and two from group 2.

I am a lender and have been for 17 years

http://www.bkforum.com/showthread.php?10878-Buying-a-house-after-Bankruptcy/page14

[tobee43]

i really think the only way we are going to really to start knowing the REAL truth is when the lenders start to hand out some money.

and, you are correct freeatlast...i'd have to wait 23 years. i think not! right now our DMI is ridicules our credit is on track and why i can't a mortgage is Chase decided never to foreclose. i'm not buying it. like i said we'll see.

when i pay off this house i hope within the next 24-36 months i'm going try to buy something else. we'll see if having money and co-signing will be helpful and if it's not then the government should step in and MAKE these banks cough up some funds. even if they aren't for me, but for some of these displaced families that have lost their homes. and PLEASE it's not their fault they were convinced by a lender they could afford their American Dream and grabbed it. it's not like they took more than what was offered. many simply didn't know better and thought life would continue to get better not worse.

i am at a place where my mortgage is discharged but the house is not foreclosed as i have stated which puts me in no category LOL!

[pathfinders]

@ free at last, Not sure what Marcer is talking about or if you only copied and pasted some of the Poast. I am 100000000000000000000000000005 this is how it is period:

Foreclosure : Must wait 3 years before eligible for FHA-insured financing
Short Sale In Default : Must wait 3 years before eligible for FHA-insured financing
Chapter 7 Bankruptcy : Must wait 2 years before eligible for FHA-insured financing

Unless something changes it is what it is, So Even if the Home was IIB and say the bank did a short sale Fourclouser or Took a DIL like US, the Clock starts ticking from that day the Title is out of you neme and it is 3 years from that point for FHA period, so If You IBB AND 2 YEARS and later the back take title it will be 5 years total. all converentail backns have a 4 year rule Period, unless you go Hard Monsay to bad, Even if yu have 50% to put down to bad, reason is that the load could not be sold to FHa and be Insured, it does would not fit in to the Guidelines of having the home out of your name, No banks CU anyone will want to be foreced to hold ther loan in house or Pertfilio: