Foreclosure after BK Chapter 7

[Magoo10]

Hi everyone, I would really appreciate an advise on my situation.
In September 2007 me and my ex wife have filed a BK chapter 7 on our mortgage, due to loss of our business and inability to pay for it. It was discharged.
Soon after that we got separated and divorced with my ex wife and we moved on with out Lives. In the end of 2012 I got remarried.
In the end of 2013 I have started getting notices from the bank and court regarding the house. It asked me to show up in court for hearing. I didn't go there because I live 200 miles away and my job wouldn't let me.
Eventually I have discovered that since 2010 my ex wife rented the house to her friend. And they have been fighting the bank not to foreclose the house. Last year I have also discovered that in November 2013 a Quitclaim Deed has been filed stating I transfer the deed for the house to my ex wife. The trick is even though it is been filed in 2013 apparently it has been signed in November 2011 when we still were married. I know I haven't signed any documents and the people who are renting a house allegedly witnessed me signing it.
Now the bank finally decided to foreclose on the property. The auction date is set for 11/23/2015.
The tenant of my ex wife now contacts me asking to short sale the house to her. I really have no interest of getting involved and I don't like when someone treats like a fool and doing things behind my back and then comes running to me for help.
My question is : How would foreclosure affect me in applying for a new mortgage with my new wife? We have been planning to buy a house in the beginning of the 2016. But now I am reading that you have to wait 3 years after foreclosure to get a new loan even though the it was discharged 8 years ago.
Please someone advise me. I appreciate all intake on this situation. Thank you

[Anonymous]

Did you reaffirm the mortgage?

Wait for some others to back me up, but from what I've learned here if you didn't reaffirm the mortgage and it was IIB, the whole thing is done already and the foreclosure shouldn't matter at all.

[Magoo10]

Thank you Steeler!
I didn't reaffirm the mortgage. I moved out of the house after BK. I hope it will not influence me. I just cleaned out my credit to prepare to buy a house and I don't need any headaches.

[Anonymous]

I hate to be the one to tell you this but it will be very difficult to obtain a new mortgage, not impossible, just very frustrating. Up until 2012 I was a licensed mortgage banker and these situations were the worst. The trade line I'm assuming still shows up on your report, underwriting will want the the title report which will show you on the title with the lien. Even with your discharge paperwork showing you BK'd it, you'll have to obtain mounds of paperwork from the original lender and various other places. As you state you want to buy in 2016. Start the process now of removing yourself from title and getting the original lender to show/update or even just acknowledge you aren't responsible for the loan. That's just to start. Also start the process with your lender of choice too see what else underwriting will want to see to show you have no responsibility left on that mortgage, and no, just because you have a bk discharge paperwork, it probably won't be enough for the lender. Just start the process now would be my advice...

[AutumnH]

I'm glad someone asked this. I have a similar problem. I filed chapter 7 bankruptcy in February 2015 it was discharged in June 2015, I have an 80/20 loan on my mortgage I reaffirmed the 80% with a loan modification. I turned in all the paperwork for the second loan as well, but I guess they were unorganized or never responded before the discharged. So now the 20% loan is not showing on my credit report. Can they foreclose on my house because it seems that one loan was discharged in my bankruptcy. 

P.S. I did the bankruptcy myself, which is why I can't consult a lawyer.

Any advice is appreciated

[Anonymous]

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@AutumnH wrote:

I'm glad someone asked this. I have a similar problem. I filed chapter 7 bankruptcy in February 2015 it was discharged in June 2015, I have an 80/20 loan on my mortgage I reaffirmed the 80% with a loan modification. I turned in all the paperwork for the second loan as well, but I guess they were unorganized or never responded before the discharged. So now the 20% loan is not showing on my credit report. Can they foreclose on my house because it seems that one loan was discharged in my bankruptcy. 

P.S. I did the bankruptcy myself, which is why I can't consult a lawyer.

Any advice is appreciated

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The 20% loan is in 2nd position on your title to the home, meaning that not paying it will not cause you to lose your house. The fact that they took it off your credit report doesn't mean it's removed from title. Any time you do anything with your hiuse, the title report will still report that lien. If you sell or refinance payoffs will be requested from both lien holders to satisfy the debts. Now the catch, you can't obtain a new mortgage until 2 years minimum from your discharge date, but will the 2nd lien report derogatory payments to the new lender which will make it hard for traditional financing when you do try to either refinance or purchase a new home. I would call your 2nd lien holder and see what's going on.

[0REDSOX7]

Suprised no one has mentioned this...

Eligibility for a mortgage post BK starts from the date your name was removed from the deed, not when your bankruptcy was dischrged.  So, as of right now, OP, you're not eligible for a new mortgage anywhere because the deed to your current house is still in your name.

Only way this is not relevant is if you sell the house via normal channels (ie, not foreclosure, short sale, deed-in-lieu).

[AutumnH]

Ok Thank you! I will look into that!

[Magoo10]

Thanks everyone for participating! Unfortunately I now know that I can't obtain a new mortgage till 2019...well, not the end of the world.
I appreciate every intake on the situation!

[Anonymous]

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@0REDSOX7 wrote:

Suprised no one has mentioned this...

Eligibility for a mortgage post BK starts from the date your name was removed from the deed, not when your bankruptcy was dischrged.  So, as of right now, OP, you're not eligible for a new mortgage anywhere because the deed to your current house is still in your name.

Only way this is not relevant is if you sell the house via normal channels (ie, not foreclosure, short sale, deed-in-lieu).

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0REDSOX7 - id have to disagree with you, in my lending career ( nmls ID - 367500 ) I refinanced many, many people who still owned and kept their home after filing BK, eligibility for FHA started 2 years from discharge ch 7 as listed on the public record on their credit reports.  FHA also states you can get a loan while in chapter 13 bk. as long as one year of on time payments have been made under the repayment.  Conventional loans however are 4 years from bk 7 and 2 years bk 13 - exceptions are there but very rare to obtain.

If if what you said was true, anyone that kept their house and mortgage after BK could never get a mortgage again.