Foreclosure after BK Chapter 7

[0REDSOX7]

RGILL - thank you for your post.

I have my house post bankruptcy and have met with several mortgage brokers as well as several banks recently about my plans for a new home.  All of them have told me the exact same thing.  Since I did not reaffirm my mortgage, I could sell the house (I have equity in it now) to a new buyer and my eligibility for a new mortgage will be two years from my discharge date.  If I were to walk away from it and either foreclose, do a short sale or deed-in-lieu, my the eligibility for a new mortgage starts from the date the deed is transferred from my name to the new owner.

If I filed bankruptcy but did NOT have a mortgage included, then yes, it will be two years before eligibility is available (granted the FHA has the Back To Work program which will make it 12 months for certain circumstances)...

There is a lot of confusion regarding mortgages that were included (but not reaffirmed) in bankruptcy as to the eligibility date - but per the guidelines given to me by four separate entities (and others here will confirm), unless I sell it without a loss to the bank, I have to wait until my name is off the deed to start the clock.

Here is a link explaining it...

http://robertweed.com/2013/08/30/how-soon-after-bankruptcy-can-i-buy-a-house-again/

[Anonymous]

Ok, the fact that you did not reaffirm the mortgage would change this.  

Btw - I am also a Red Sox fan born and raised in Providence

[0REDSOX7]

Got ya!  The re-affirming piece is the key here.

And Go Sox!  My aunt lives up there (Warick, RI) - took me to my first Sox game back in '04 against the Indians.  Been hooked ever since!

[Anonymous]

I keep hearing conflicting information about this. We have a house we discharged in BK that is still siitting empty because the bank never even started foreclosure on it (and probably never will) The bank took the house over, changed the locks and put signs all over the front door stating not to enter it. They have been paying insurance and taxes for more than 5 years on the home. We have no legal right to the home or I'm sure the bank would now sue us if we tried to touch it!

We are in the process of buying another home and I asked the loan officer about our name still being on the title of the old house and he said it doesn't matter, the discharge acts as a foreclosure and it isn't our fault the bank never foreclosed. He said they have updated some policies because of all the homes banks refuse to foreclose on and as long as we are discharged, we can get another home (even though our name is still on the deed of the old home)