New home questions.

[Sch0810]

Hello all. I haven't been around here in a while, but when I was going through my chap 7, this board was my go to for questions and answers so I'm hoping you knowledgeable folks can help me with these questions.

1. Chap 7 discharged 2/13. Mortgage was not reaffirmed and we are current in all payments and live here currently.
2. Due to my husbands work location, we would like to move closer to his work to cut down on commute times.
3. We are working on preapproval and found a house we love and put offer in.
4. After speaking with lending company, they told me the house is not in my name anymore.

My questions are:
1. What will happen to our current house?
2. Do we still have to pay home owners insurance/property taxes?
3. When should I stop paying for mortgage on current home?

Thank you for your help!

[Sch0810]

Also, we wanted to just "walk away" from our current home. Can someone further explain deed in foreclosure?

[Drazil65]

When you say the "house is not in your name anymore" are you talking about your current house? Was it foreclosed on? If your payments were current then why would it be foreclosed on? Something does not sound right.

[Sch0810]

That's what the people at quicken loans told me. No, my house is not in foreclosure. We still live here and are current sin payments. I'm wondering if we buy new house what happens with the one we are in.

[LadyInTheRed]

As Drazil65 points out, something doesn't sound right. Why would your home not be in your name? It is actually an important fact in determining whether you will be able to get a mortgage. If the home is still in your name and their is still a recorded lien, then you are unlikely to get approved for a mortgage for a new home unless you can show enough income to make payments on both mortgages. But, if it really is not in your name, then it may not be an issue.

If your mortgage was discharged, you can stop paying at any time and you can leave the house when you are ready or after the bank forecloses and evicts you, whichever happens first. There's nothing you have to do other than walk away. But, if the home is still in your name when you apply for a new mortgage, not being able to show you were keeping payments current will probably hurt your chances of getting approved.

[Drazil65]

Also, did the people at Quicken loans do a title search? Where you in someone's office face to face or on the phone (computer online)? Many people that work with mortgages are actually very clueless about bankruptcy and will answer questions going by what they think they understand about it. They are also sales people who will do/say anything to make a sale. Do not get your hopes up about a mortgage right now if your house was not officially foreclosed or sold (you would know about both obviously).

You can walk away by stopping the payments and saving them for moving expenses but you will have to wait for the foreclosure action to complete if you are not going to sell the home on your own. You could be looking at a timeframe of typically 6 months to a year easily. But that is a lot of money to save in the mean time and a bigger down payment on a new home. If you have HOA fees on current home you will need to keep paying them even if not paying mortgage.

I would also suggest that you read/brush up on how a bankruptcy discharge affects your current home if you did not reaffirm and are current on payments (a pay and stay). Especially at what point your name is out of title and how that happens. The chances of you obtaining a new mortgage with the old home still under your name are slim unless you have the income and down payment to assume that new loan. Knowledge is power and you should make sure you totally understand what you are walking into BEFORE you talk to a new mortgage company. They rarely understand what they are talking about when it comes to bankruptcy.

[Sch0810]

I do apologize but I forgot to include some important info. My chap 7 and mortar are only in my name, not my husband's. The new mortgage. will be only in his name. His name is on the deed though. We will be doing a quick claim deed tomorrow to remove his name. I guess I'm confused about the whole Issue.