Buying Back Home After Chapter 7

[ErikaJ101]

Hi Everyone,
My name is Erika and I am hoping someone out there can help my husband and I. We bought our home in Florida in 2007 for $450,000. We financed on two loans both through Suntrust. The same sob story just about everyone has we lost our job and had to stop making payments. We fought for two years to modify given that we have a new stable job (not making as much as we use to, but enough) they lost our paperwork 5 or 6 times, gave us a horrible mod with three loans and a higher payment when we went to mediation they sent some guy who had never looked at our case and told us they had nothing to offer us. They did nothing to help us save our house and when we got notice of sale on the home we filed for chapter 7. We were approved and should be discharged by the end of April. The home included in the BK. We love our home, our neighbors etc... and don't want to lose it, but its current value is around $250,000. Our attorney has said that the foreclosure process might take a long time. My questions are is the time frame to be able to buy again in Florida based on discharge from BK or from the foreclosure? If its from discharge and we stay while the foreclosure process is taking a long time and we get to a point where we can buy again as we are obviously saving a lot of money to be able to put down are there options for us to be able to buy our home back being qualified by another lender? Can the debt re-attach or no since it was wiped during the bankruptcy? In our perfect world we would be able to buy our home back for market value.....is that a possibility since obviously "someone" will be buying it later rather than sooner probably for market value. Thank you for any advice or experiences that might help.

[helpmeout]

I'm not so sure that you will be able to buy back your house. Some states have laws that state you can't do that. You may want to consult with an attorney.

[scorpion35]

Hi Everyone,
My name is Erika and I am hoping someone out there can help my husband and I. We bought our home in Florida in 2007 for $450,000. We financed on two loans both through Suntrust. The same sob story just about everyone has we lost our job and had to stop making payments. We fought for two years to modify given that we have a new stable job (not making as much as we use to, but enough) they lost our paperwork 5 or 6 times, gave us a horrible mod with three loans and a higher payment when we went to mediation they sent some guy who had never looked at our case and told us they had nothing to offer us. They did nothing to help us save our house and when we got notice of sale on the home we filed for chapter 7. We were approved and should be discharged by the end of April. The home included in the BK. We love our home, our neighbors etc... and don't want to lose it, but its current value is around $250,000. Our attorney has said that the foreclosure process might take a long time. My questions are is the time frame to be able to buy again in Florida based on discharge from BK or from the foreclosure? If its from discharge and we stay while the foreclosure process is taking a long time and we get to a point where we can buy again as we are obviously saving a lot of money to be able to put down are there options for us to be able to buy our home back being qualified by another lender? Can the debt re-attach or no since it was wiped during the bankruptcy? In our perfect world we would be able to buy our home back for market value.....is that a possibility since obviously "someone" will be buying it later rather than sooner probably for market value. Thank you for any advice or experiences that might help.

u will have to wait at least 2 years to qualify for another mortgage

[Flamingo]

Hi Everyone,
My name is Erika and I am hoping someone out there can help my husband and I. We bought our home in Florida in 2007 for $450,000. We financed on two loans both through Suntrust. The same sob story just about everyone has we lost our job and had to stop making payments. We fought for two years to modify given that we have a new stable job (not making as much as we use to, but enough) they lost our paperwork 5 or 6 times, gave us a horrible mod with three loans and a higher payment when we went to mediation they sent some guy who had never looked at our case and told us they had nothing to offer us. They did nothing to help us save our house and when we got notice of sale on the home we filed for chapter 7. We were approved and should be discharged by the end of April. The home included in the BK. We love our home, our neighbors etc... and don't want to lose it, but its current value is around $250,000. Our attorney has said that the foreclosure process might take a long time. My questions are is the time frame to be able to buy again in Florida based on discharge from BK or from the foreclosure? If its from discharge and we stay while the foreclosure process is taking a long time and we get to a point where we can buy again as we are obviously saving a lot of money to be able to put down are there options for us to be able to buy our home back being qualified by another lender? Can the debt re-attach or no since it was wiped during the bankruptcy? In our perfect world we would be able to buy our home back for market value.....is that a possibility since obviously "someone" will be buying it later rather than sooner probably for market value. Thank you for any advice or experiences that might help.

If what you are questioning were possible, people would be lining up in droves to file BK and foreclose on their home. Unfortunately, filing BK is not a walk in the park for your credit rating and will haunt you for 10 years from your filing date no matter what your reason for having to file or how much money you are able to save. You have now become a huge credit risk. You probably will not be able to qualify for another mortgage for at least two years or more (will have to investigate probably a FHA loan and deal with PMI added to mortgage payments) depending upon how you reestablish yourselves as credit worthy. Even with that, there still are creditors/lenders that as soon as they see a BK on your credit reports, will not extend any loans or credit.

[newbie2]

Hi Everyone,
My questions are is the time frame to be able to buy again in Florida based on discharge from BK or from the foreclosure? If its from discharge and we stay while the foreclosure process is taking a long time and we get to a point where we can buy again as we are obviously saving a lot of money to be able to put down are there options for us to be able to buy our home back being qualified by another lender? Can the debt re-attach or no since it was wiped during the bankruptcy? In our perfect world we would be able to buy our home back for market value.....is that a possibility since obviously "someone" will be buying it later rather than sooner probably for market value. Thank you for any advice or experiences that might help.

No can do. Once the bank has the home and lists it for sale, you can't purchase it. (Nor can your relatives or friends..) It has to be an "arms length" transaction so that you don't personally benefit from the foreclosure. You need to move on and think about what you can do after the bk discharge and foreclosure. Good luck to you and your family.

[ssmdem]

The waiting time on a mortgage loan is calculated from the date of the foreclosure, not the date of the bankruptcy. We're in the same boat in Florida. We have two properties we are surrendering. Our home is closer to being foreclosed on than our rental property. However, neither bank has contacted us on either loan. We're staying put until we have to move - and yes, we're saving quite a bit right now, more than we've ever been able to save up in our lives.

That being said, I've never understood the "friends or family" can't purchase the house theory. I get family if the last name is the same, but seriously -- how on earth would they know if a friend is purchasing the house? We've had a friend offer to buy it and then owner finance it back to us. Not sure if we're going to do it -- but really don't see how they could say anything.

[Flamingo]

The waiting time on a mortgage loan is calculated from the date of the foreclosure, not the date of the bankruptcy. We're in the same boat in Florida. We have two properties we are surrendering. Our home is closer to being foreclosed on than our rental property. However, neither bank has contacted us on either loan. We're staying put until we have to move - and yes, we're saving quite a bit right now, more than we've ever been able to save up in our lives.

That being said, I've never understood the "friends or family" can't purchase the house theory. I get family if the last name is the same, but seriously -- how on earth would they know if a friend is purchasing the house? We've had a friend offer to buy it and then owner finance it back to us. Not sure if we're going to do it -- but really don't see how they could say anything.

There's a little thing called "fraud" that rings clear in what you are posting....you are living there free and clear of paying anything and saving money that you could put toward house payments. You want to live there free and clear and then hope to buy back the house? Also in today's world, it doesn't take much to track down anyone's friends or family and in the case of someone trying to get their house back after living there free for a while and saving money, you can bet the bank has private investigators for these things. You yourself know there could be issues or you would not be asking questions about the situation. Have you asked your attorney about all this? Maybe you should consult with a real estate attorney or investigate your Florida Code as to real estate practices and your state laws. Reality sometimes is a hard pill to swallow.

[newbie2]

Ditto on what Flamingo said. It should also be noted that at closing your friend will be given a document to sign that states (paraphrasing) that they don't you, never met you, and there are no side deals to the transaction with you post closing. If they sign it and the lender finds out about your side deal with them, then they can be hit with federal loan fraud charges.

[ErikaJ101]

Wow. This entire thread has basically made me ill. Big mistake for posting something thinking that someone could help on here. Everyone's situation is completely different and to make such rude comments accusing people of fraud is ridiculous!! I have no idea what that other persons "personal" situation is, but I can tell you that my husband and I have fought hand over fist to work with our bank. We are not freeloaders! We want to pay! We wanted a modification. Hell we would have settled to keep the negative equity if they could have made the home affordable. Since every bank is different we were unfortunate and were not offered the modifications that other people are being offered. Lets get things straight not every person who "has" to file bankruptcy is a waste of space, credit risk, financial nightmare. We in fact have NO consumer debt! Yea thats right not a single penny owed to visa! Some people are hardworking individuals with families who just want to keep the home that their memories are in. And attorneys are not always correct....they are guessing just like we are guessing. Three years ago we were advised by attorneys to stop paying...at the time this was the way to "prove" to your bank that you can't pay and need a modification otherwise they won't talk to you. Now they will tell you not to get behind and they will work with you...if you get behind they won't. It was a no win from the beginning. As to the comments about saving money. That would be because the days of 100% financing are gone. If we are able to get credit up....we are going to need a huge chunk to put down. I guess thats our consolation prize for losing our home is that we can save more easily.

I asked a flat question about the possibility. I wasn't looking for your judgement. I was actually trying to see if someone out in the great internet abyss was able to do this themselves. There should be some options considering the home next to me has been vacant for 3 years!

As far as people "lining up in droves"!! HA. First you have to be approved for bankruptcy, secondly it is a huge decision that wrecks your credit and is really reserved for people who are left with no options. I highly doubt people will be lining up in droves to wreck their credit, lose some of their assets and take a "small" chance they might be able to buy their home back.

I'm not suggesting that anyone should commit fraud to get their home back, but lets get real about these situations, they are desperate people wanting to keep their homes. If it burns you up so bad that some people are living "free and clear" as you so put it....then stop paying your home loan and go live through their nightmare. Don't worry you are just living somewhere stress free and rolling in it, right? And then no big deal just move on to a different house.

[helpmeout]

You didn't get judgement. What you got was answer to your question about buying back your house after foreclosure. There is a law that says you can't benefit personally from your home foreclosing. It's not a matter of an attorney being correct or not. It's a matter of the law is very specific. No guess work involved at all. Nothing ambiguous. Not what you want to hear, but that doesn't change that you won't be able to buy your house back after foreclosure without paying the FULL amount of your current mortgage plus any legal fees if your state allows the bank to add those on. You won't be paying the lower amount that a third party at arm's length would.

[discombob1]

Erika, I am very sorry to hear of your situation. Unfortunately, you are not alone as this crisis reaches across the country. And also unfortunately, the previous replies are correct. It's entirely possible that someone has done what you are asking about... but under the law, it is fraud. I don't think any on this board think debtors are a waste of space since almost all of us here have filed BK. Your question was asked and answered... and I honestly don't think it was answered with judgment intended. The best of luck to you, I hope you do find a place that you will love as much as your current home.

[chicagoannie]

Erika - the stronger comments were directed at another forum member who has inquired about this topic several times. You were given excellent advice and no one was judging you. Putting the label of "fraud" on someone's wishful thinking out loud of a possible solution to stay in a home they love is not calling them a criminal or impugning their character. It is merely defining how the banks and the law view such a solution.

[Flamingo]

Wow. This entire thread has basically made me ill. Big mistake for posting something thinking that someone could help on here. Everyone's situation is completely different and to make such rude comments accusing people of fraud is ridiculous!! I have no idea what that other persons "personal" situation is, but I can tell you that my husband and I have fought hand over fist to work with our bank. We are not freeloaders! We want to pay! We wanted a modification. Hell we would have settled to keep the negative equity if they could have made the home affordable. Since every bank is different we were unfortunate and were not offered the modifications that other people are being offered. Lets get things straight not every person who "has" to file bankruptcy is a waste of space, credit risk, financial nightmare. We in fact have NO consumer debt! Yea thats right not a single penny owed to visa! Some people are hardworking individuals with families who just want to keep the home that their memories are in. And attorneys are not always correct....they are guessing just like we are guessing. Three years ago we were advised by attorneys to stop paying...at the time this was the way to "prove" to your bank that you can't pay and need a modification otherwise they won't talk to you. Now they will tell you not to get behind and they will work with you...if you get behind they won't. It was a no win from the beginning. As to the comments about saving money. That would be because the days of 100% financing are gone. If we are able to get credit up....we are going to need a huge chunk to put down. I guess thats our consolation prize for losing our home is that we can save more easily.

I asked a flat question about the possibility. I wasn't looking for your judgement. I was actually trying to see if someone out in the great internet abyss was able to do this themselves. There should be some options considering the home next to me has been vacant for 3 years!

As far as people "lining up in droves"!! HA. First you have to be approved for bankruptcy, secondly it is a huge decision that wrecks your credit and is really reserved for people who are left with no options. I highly doubt people will be lining up in droves to wreck their credit, lose some of their assets and take a "small" chance they might be able to buy their home back.

I'm not suggesting that anyone should commit fraud to get their home back, but lets get real about these situations, they are desperate people wanting to keep their homes. If it burns you up so bad that some people are living "free and clear" as you so put it....then stop paying your home loan and go live through their nightmare. Don't worry you are just living somewhere stress free and rolling in it, right? And then no big deal just move on to a different house.

No one was judging you - you were just told something you didn't want to hear. There are state and federal laws governing foreclosures - the best thing for you to do is to discuss your situation with a real estate attorney who can advise you of your state laws and what can or cannot be done. As to your few last sentences, we filed BK (Chapter 13) and kept our home and struggled to keep it. No one is judging those who went underwater or lost their jobs; we had to file due to job loss and a 70% reduction in income so if anyone knows the crosses other folks bear, it is me and all the others on here who have been through it. You will have to face the hard reality fact that there is probably a 0% chance you can stay in your home payment free while the foreclosure takes place and then think that your bank or any bank will work with you to buy back the home. If you don't believe what you are being told on here now, you will when it happens. Best of luck to you...your best bet, again, is to consult with a real estate attorney in your state, save your money, rent for a while and when your credit in several years is better look to get another home by going through a broker who deals with folks who have filed BK.