mortgage for new home when bank won't foreclose on old home

[superstress]

we had two homes. ch 7 was discharged in oct 2010 and one of the houses was foreclosed in july 2012. Other house the bank wants no part of. They (Chase) refuse to foreclose on it. I have called the county 4 times for them to foreclose because of taxes and they still won't. We were in ohio and moved to FL. Renting for almost a year.


Is there any way to get a mtg on a house down here or are we stuck renting until someone forecloses on house. Our scores are very good,credit reestablished, etc.

Thanks
We are in central FL if anyone knows anyone that can help us

[tobee43]

superstress....we have/had a very close type of situation as you.

we vacated our home in another state, we had also another piece of property. our home was with chase and the other property with another lender. the other lender did a DIL (deed in lieu) chase on the other hand hasn't made a move to foreclose and we are at about 5 years. although in dec i rec'd a letter from a collection atty asking me to submit the full payment of my mortgage, a mortgage that was fully discharged in our bk. chase also called me about 6-7 months ago, i think it was, to ask me what are intentions were with this property??/ (like what is it about surrender you don't get) and the fact the house has been vacate for 5 years??

we moved to florida and left the house. we found a home here with a rental option to buy. i exercised the offer early and offered the owner more than asking price plus a handsome amount down and asked if they would hold the mortgage. they did 5% on the balance using no banks at all. now, i know i was very lucky with finding this place, not exactly the place of our dreams, but it's ours.....and should or be paid off within the next (i think 6 months!) but to stretch it may be a year. we have sunk every spare cent into paying this off and we are just about there. again, this wasn't an easy task. also, land contracts are a way to buy, you need to work with a broker to help locate homes that may be available, as there is plenty of inventory here in florida! we are also in central florida, so they are here, you just have to hunt and find a real estate person.

also, you could try and get a loan with someone that may work with you. because chase hasn't foreclosed shouldn't effect that. it's just your name is still on the deed you can prove it was discharged in a bk.

[Billssuck]

I'm in a similiar situation. We surrendered our old home in CH 13 almost 3 years ago. We stayed until about a year ago but moved finally because we found a good house (much cheaper to rent than to pay utilities and commute to work than the old home) that a relative purchased for us to "rent to own". Our plan is to rent to own until we are legally able to buy it from our relative. But when will that be? The old home I am the only listed on the note; my spouse is not. From what I read, he can purchase the new place 2 years from BK discharge. Me...I'm supposed to wait until 3 years after foreclosure. If my spouse buys the house, then we probably won't be able to include my income on the financing qualifications. I think we can do it with just my husband because the balance on the new house will be less than $30K then and I believe he can qualifiy without me. It's so frustrating to not have the old house done and over with.....

[tobee43]

I'm in a similiar situation. We surrendered our old home in CH 13 almost 3 years ago. We stayed until about a year ago but moved finally because we found a good house (much cheaper to rent than to pay utilities and commute to work than the old home) that a relative purchased for us to "rent to own". Our plan is to rent to own until we are legally able to buy it from our relative. But when will that be? The old home I am the only listed on the note; my spouse is not. From what I read, he can purchase the new place 2 years from BK discharge. Me...I'm supposed to wait until 3 years after foreclosure. If my spouse buys the house, then we probably won't be able to include my income on the financing qualifications. I think we can do it with just my husband because the balance on the new house will be less than $30K then and I believe he can qualifiy without me. It's so frustrating to not have the old house done and over with.....

i'm a bit confused here. if a relative owns the property can't you just wait until your chapter 13 is completed and since it's such a small amount of money couldn't they hold the remaining mortgage for you??? i understand since you are in a 13 there are issues about buying it now.

since we were a chapter 7 there were no issues at all, but it was a couple years later and we rented prior saving up every cent to buy so we had a good amount to put towards the down payment.

[broke54]

I had a similar post under "when can I get a mortage". I'm in Ohio, too. Just got off the phone with my loan officer at the credit union. He said I'm in the "gray" area - credit is good, it's been long enough after the BK for a mortage; however a background would show the property still in my name. He also said he's talked to at least 10 people this month in the same boat, with the same lender AND about 50 people in the past couple of months with a couple of lenders. He said he believes they are just overwhelmed. So, I can't get a mortgage until this property is out of my name, Chase or the county won't foreclose. I can stay but this place needs a lot of work and I will still be responsible for condo dues. It's just too much some days.

[tobee43]

broke54 can you tell us why the loan officer said it means anything at all with the respect that the old property is still in your name? many people have other property when they go to buy other property and the fact this one is still technically in your name but was discharged in a bk should reflex on why you should or should not get a mortgage?

this is where to me, it makes absolutely NO sense at all what difference could a discharged debt make, in know in the state we have our un-foreclosed property, the statue of limitations is 20 years for chase to change the deed name. i'm thinking about quick claiming the property back to them LOL!!!!! i'm going to just send it out

[broke54]

He said it was a very gray area. He said it looks good on paper for me to qualify for another mortgage; however, a background would reveal that this property is still in my name and the clock won't start ticking until they foreclose. I am really stuck if they take 20 years to foreclose. Again, there is so much that needs to be done here if I decide to stay, the furnace could go at any time and it's cold in OH. If I left, I would still be responsible for condo dues. I don't know. Do you have any suggestions.

[Discharged09]

Gray area indeed. I surrendered a condo in my Chp 7 that was discharged in Oct of 2009 and BOA has STILL not done a thing with it! I finally tried to do a deed in lieu a few months back after countless phone calls of them calling me to do so. Guess what happend?? They turned that down!! Are you kidding me....you guys are calling me to do this...so I do it and then get turned down?? This is like the twilight zone!!

Anyway, I also tried to get a mortgage...my broker basically said the same thing..gray area. However, I needed to know for sure, cause I don't like to give up on things. So we were pre-approved, went shopping for a home, made an offer, got offer accepted, got inspections done, appraisals done etc... After all of this (plus money paid for those services) I got turned down since my name was still "attached" to my old property. My broker had not dealt with a case like this, so he didn't know how things would turn out. Obviously, it didn't work (with him anyway).

[broke54]

Thanks. I think you saved me some time. I ran this by several loan officers but chose to discuss in greater detail with my credit union since I've had a long-time relationship with them and I felt they would work with me. What happened to you . . . . you needed to know for sure, pre-approval, all the inspections, etc. and then you were turned down is precisely what my loan officer said would happen to me. I'm one of those that "need to know for sure" too so I'm not sure what's next. I, too, suggested a deed in lieu to my attorney and he said . . . they usually don't accept those because they don't have to. I have rec'd correspondence from an agent for chase asking for $$ to release the lien. I reviewed with my attorney because I was thinking . . . . I could get the place back, make necessary repairs, MAYBE sell and save myself from a few years of waiting to qualify for a new mortgage. This is nightmarish. Coincidentally, I have a friend who has a mortgage with BOA, she's several months behind on her mortgage, is considering filing BK and rec'd a letter from BOA offering a DIL and 3K in moving expenses. I said good luck with that ever happening.

[tobee43]

i would still want to know exactly WHY this is such a "gray" area. again, what does it matter that the house is still in your name? what does that exactly have to do with anything at all??

it's simply the lenders. the FEDS are telling them lend lend lend again, but in the same breath telling them to not take any chances with whom they are lending to. and, while the FHA guidelines say ok, the lenders can do what ever and use what ever discretion they want to say NO. also, the DIL depends again at the lenders discretion, we were able to do an DIL on one piece of property, yet our primary home with chase, no way would they entertain it, although like mentioned above, it was THEIR idea, an idea, just to turn down.

again, i would suggest trying to purchase under a land contract or start looking for an owner finance home, like we have. again, i KNOW they are not easy to find, but they are out there. we didn't have a ton of choices, but at least we bypassed the banks.

[broke54]

Hey, I'm with you! One of my friends, former manager @ Chase, said to contact the Division of Fiannce and report them.
Any suggestions.

For me, still having this condo in my name means I'm still responsible for association dues and some upkeep. From previous experience here, this could be a headache. My concern with "land contract" or even "owner financed" is that I can't promise they'll foreclose in another five years so I again wouldn't be eligible for financing until two years after the clock starts ticking.

My attorney honestly appeared to not want to be bothered with this. She said you're smart, you can do this. Should I see another attorney? I guess I could call the bank direct to see what they say. I just don't want to do the wrong thing. My story gives most people a headache.

[tobee43]

a "land contract" is really a form of owner finance...(i did that for my daughters home), and also, we did owner finance and neither of these forms of financing have to do with whether you foreclose have/had a bk, or anything of that sort. unless the owner is really sticky about it, that's where money talks, again we offered OVER asking price and a ridiculous amount down.... it really should have nothing to do with your old property. they are apart and separate and are completely bypassed.

it's the OCC you should contact...Office of the Controller of Currency. the are the agency that governs all banking institutes in the USA. the division of fiance really can't help that much. really either does the OCC, the only one's that really can. they did absolutely nothing for me, not a thing.

my solution was to find a way around the banks, which i did. there is no reason to go FHA just save more money for the down payment and buy less.

look, this certainly is NOT the house of our dreams, but it was what we could afford, and will be paid off soon...completely, ours. most people come here and think it's beautiful, but i would not be honest if i didn't say it wasn't hard downsizing from a 4500 sq foot home with acres of beautiful land and mountains, ponds, pools and spa, hot tubs and more. that just isn't going to happen again and also, we didn't just buy that 4500sq foot home, we worked collectively well over 60 years between the two of us to have it. but it's not practical nor logical anymore. what we have meets all our needs perfectly although i don't LOVE it here, it's what had/has to be so we never have to worry about affordability again.

it took such hard work to find this place. and that's the point here. something will come up for you. you just have to keep hitting that pavement, get an real estate agent that knows your situation and may have some connections to lenders or owners willing to hold mortgages....after all, stranger things have happened.

i know it will take some time, but you will do this!