sticky situation (Georgia)

[tic404]

My wife and I purchased a house back in 2009 for 149,900 at 6% interest. we had a 5 year deal on the house with a balloon payment at the end (if we dont refi). We filed for ch 7 last may and was discharged last september. we decided to stay and pay. After trying to refinance our home we discovered that other homes in our neighborhood has been selling for less than 100,000 which means it would be almost impossible to refi because we are so underwater with our home. Because our loan is through a private lender and not a government backed loan modification are out of the picture. We are considering leaving but are concerned what will happen with our credit. We have been working hard to rebuild but I think if we go to purchase a home next year would a foreclosure appear on our credit?

[hnhlvr]

Your credit score will go down by hundreds of points. Oddly enough, we had our credit run last month through a rental agency and said foreclosures: 0. I'm just scratching my head on that one since our foreclosure was just a few years back. Surely though, if we do apply for a mortgage via a lender, it'll show up. On our credit report our second shows up as in collections but just says the bank name, not what the amount due is for.

Your best bet if you decide to buy is find an owner who'll carry a contract with you. We had moved into a home and the owner wanted to sell us the house and was willing to carry the contract. We opted out b/c she was asking too much...funny thing is the market still sank and the amount we were willing to pay was what she finally got for it when she did sell it! Be sure, no matter what, to NOT offer a balloon payment again. You can never predict the future, just as you've now seen!

[malf1204]

If your loan was included in your CH7 and you did not reaffirm then nothing will happen. You can walk away

[ValleYum]

Your credit score will go down by hundreds of points. Oddly enough, we had our credit run last month through a rental agency and said foreclosures: 0. I'm just scratching my head on that one since our foreclosure was just a few years back. Surely though, if we do apply for a mortgage via a lender, it'll show up. On our credit report our second shows up as in collections but just says the bank name, not what the amount due is for.

Not necessarily true since the OP filed a BK. If the mortgage was IIB and not reaffirmed, it should not affect anything on their credit report. The debt does not belong to them anymore - it was discharged.

Not being snarky, just from looking at some of your previous posts, I think you are speaking from your experiences - have you filed a BK yet?

[DebtEnder]

In regards to buying a home it is not your "credit" that matters. If you did not reaffirm your credit will be unaffected, ie car loans, credit cards, personal loans all would be unchanged as far as being able to get them. However a system known as Caivrs exists that keeps track of defaulted housing among other loans. From the hud website.

CAIVRS was developed by the Department of Housing and Urban Development in June 1987 as a shared database of defaulted Federal debtors, and enables processors of applications for Federal credit benefit to identify individuals who are in default or have had claims paid on direct or guaranteed Federal loans, or are delinquent or other debts owed to Federal agencies.

In short if foreclosed on getting a FHA loan will be impossible for 2 years starting from the date of foreclosure, 3 for conventional. If your in a more rural area then USDA backed loans could be an option for you. Many people here have reported success getting home loans mere months after BK and foreclosure. If your in Fulton county however your not going to qualify.

[hnhlvr]

Not necessarily true since the OP filed a BK. If the mortgage was IIB and not reaffirmed, it should not affect anything on their credit report. The debt does not belong to them anymore - it was discharged.

Not being snarky, just from looking at some of your previous posts, I think you are speaking from your experiences - have you filed a BK yet?

I just posted today that I put a retainer down on a bk attorney and making payments. You clearly missed that post in your attempt to write up a non-snarky comment! ;)

[ValleYum]

I just posted today that I put a retainer down on a bk attorney and making payments. You clearly missed that post in your attempt to write up a non-snarky comment! ;)

I did not think you were giving correct info to the OP in this post. I said that and explained why. For the record, I never said I read all of your previous posts, either.

Then, I prefaced my comment about your experiences (i.e.: your personal point of view and situation) and some of your previous posts so you would not take my comment the wrong way which it appears you did anyway. Then I simply asked if you had filed bankruptcy yet. Words on forums are sometimes hard to judge as to their intent. Again, my intent was not to be snarky.

I have been corrected for inaccurate/incomplete/incorrect posts on here before - it is done not to be mean or appear better than another poster - it is done so when future forum members read these posts we have the most accurate information available to them.

I am sorry if you took it any other way.