Mortgage through chap 7 and trying to get a new loan

[anne71]

Hello,
I had a chapter 7 in 11/2008 in which I only had a mortgage go through and a small credit card. I got divorced in 2002 and got all debt as my ex was not working (going to school). I put the house on the market in 2003, it was too big for me to upkeep and heat, and with in that time, the market crashed and the company I worked for got bought out and had a large pay cut. Having the house on the market and not being able to sell, I took a low ball offer and paid 25k difference off by cashing out my 401. After I had moved out, right before closing the buyer backed out. I had no legal recourse per the way the agent wrote the contract. The mortgage was with countrywide and they were good, but not getting my money back. The home was left in good shape, not stripped, and I paid to have it winterized. I tried to short sell, but was unable to. I then was working a deed in lieu, though in that time B of A took over. They changed the locks on the home when the home was only a few months passed due as I went to check on it, and to obtain some paperwork I left. I started getting calls and told the what I was working out with countrywide. The phone calls went back and forth until I had a rep from B of A call and tell me they were "going to sue me for everything I had". I called my lawyer and he talked me into filing the bko. It seems like B of A had issues with confirming who owned the mortgage to foreclose the mortgage and then they sold it to Greentree and the home was foreclosed on the end of last year. I am now with a new stable company with money in the bank that I have been saving on for a home after owing the taxes on my 401. My credit score is 699 and I have re-establishment plus carried cards thru. I do not have any credit card debt and I have a new car loan for 2 years. My old car loan was reaffirmed. I am now finding out that even though the Bko was 5 years ago, because the bank sat on the loan and did not foreclose for 4 1/2 years. I now have to wait another 3 years? The home is foreclosed per a packet I received from the court, but Greentree is sending me a bill for 54k. I did get that to my attorney but have not heard back. There are no rentals where I need to be for my employment and the travel is killer. I'm in Maine. Is there any recourse or anyway around getting a new home with 10% down and with out a high interest rate?

[justbroke]

If your scores are improved, you have consistent payment history over last 24 months (or so), and you can prove a hardship, then you should be able to get funding through one of the FHA or other federal programs. It won't be easy. It will require diligence, patience, and a lot of shopping.

[tobee43]

even tho you went via the credit union are you on the fed caviars list? if so. and it's a quick call to them (FHA) they can tell you when you can apply. i thought it was ONLY government back loans, but apparently, it's just the agency that now keeps those records. the truth is, it will just depend on the lender.

we recently purchased our second home, the first on is paid in full. this second one was much more expensive and we had 100% down, i just wanted another 30k for some upgrades and got a big fat NO. however, 4 weeks after the closing i have had 3 banks offer me everything under the sun. so again, it's going to depend on the lenders. i only believe i got those calls because we have no mortgages and they were looking to attempt to see if now that we have the collateral we wanted to use some. its an odd journey, but just keep going for it!! best of luck to you and welcome to the forum!

[anne71]

I am not sure if I am on the list or not. I got an email on Friday from the mortgage company that I started working with that just said I would be receiving feedback on Tuesday. So of course I started to do research and came across the waiting period after the true foreclosure. I thought the BK protected me and my attorney never told me this, or I would have been calling the bank everyday to force the foreclosure. Do credit unions or conventional loans work the same way?

[LadyInTheRed]

I thought the BK protected me and my attorney never told me this, or I would have been calling the bank everyday to force the foreclosure.

Your attorney's job was to get your debts discharged in BK, not to advise you on when you could qualify for another mortgage. You can't force a bank to foreclose. Calling the bank every day probably would not have made a difference. If you did not reaffirm the mortgage, Greentree is violating the BK court's permanent injunction against collection by trying to collect the deficiency. Send them a copy of your discharge order and tell them to leave you alone. If they continue to try to collect, talk to your attorney about filing a complaint against them.

Based on what some have posted here on the subject, FHA guidelines allow a mortgage 2 years after the BK regardless of when the foreclosure happened. But, the banks have their own requirements that are often stricter than FHA guidelines.

[tobee43]

Lady, that two years is really not accurate, that is why the FHA has developed the caviers list. it's approx. 4-5 after a foreclosure and in our case chase never even foreclosed. however, until you contact them to see what your date is that is when you can begin to apply again.

you know we have all heard 2 years 4 years and so on and so forth, but the bottom line truth is it's still up to the lender no matter what. as you have pointed out and many know i personally am living proof of this, as chase never foreclosed on us, still to this date. well over 5 years, however, somehow we got on the list and according to that list we can't get a mortgage until 2016.....8 years after our filing date. go figure.

anne71: as Lady points out one doesn't have to do with the other as far a qualifying for a mortgage. the "old" mortgage is just IIB. greentree is notorious for violations of the bk codes.

[anne71]

Thank you for all the input. Though would a Credit Union look at things differently then a conventional bank?

[tobee43]

many times from what i heard it is to the contrary, as credit unions are owned by the "people" as opposed to investor, although i have also heard it is easier at times to re-establish perhaps a credit card via a credit union.

[anne71]

I got turned down by the mortgage company (Mortgage Network). I was told by the loan officer they would not lend until 3 to 7 years after the foreclosure date. They could not give me a straight answer. 3 years the BK should not even show on my credit report. Guess I will keep renting and traveling.

[tobee43]

try quicken loans. they told me know then we brought the house. right after the closing then just called a few weeks ago and asked if we wanted a mortgage. i said you said no just a month ago? what's the deal he said now had collateral what?????? we managed to get the house into shape, shoot, we had go into our savings a BIG NO NO but i guess it's better than even the small mortgage of 30k we were asking for.

as i said, no one is clear about the timing of how long after a bk or a foreclosure. those FHA guidelines are just that, guidelines, again the lenders have the final say when it goes to underwriting and that is the sad truth. sorry.

keep plugging, something will go!

[anne71]

Thanks for the boost. I sent another email basically begging if I put more money down, but was told no 7 years. I just got a letter from my landlord yesterday telling me they were selling the duplex that I am in now and I can not find anything to rent that is reasonable that I can afford and that will take a cat and my cat is the most important thing to me. I am packing to get my items in storage and it looks like I may be out of a house all together in 60 days. At least my car is roomy and my job allows pets and has showers. got to look on the bright side

[tobee43]

really you NEED to try other lenders. try as many as you can. they are "suppose" to be soft hits on your credit report when you are mortgage shopping. i would inquire with as many lenders as i could with a good down payment if you have one. ah!! no living in your car!!! not allowed please

[anne71]

Thank you, I thought it was a hard hit, and was nervous about that. I did get a letter from the mortgage company telling me my FICO was 739 and I was worried the hits would make it drop. I will start shopping around.

[tobee43]

something will work out. also call the HUD and see if they any suggestions for you?

[LadyInTheRed]

You might also try working with a mortgage broker with experience working with people with bankruptcy and foreclosures in their past.