Cant seem to get a straight answer on this one. I filed for BK in 12/05 because of a loss of a business and the house was included in the BK. I stopped paying the house note at this time. The BK was discharged in 4/06 and the foreclosure process started. The House went up for auction in 9/06 and sold but the deed was not filed until 12/06. Now I am thinking about buying again, and getting back into the process I have checked my credit and found out that the mortgage co. still shows the foreclosure as initiated and still holding the balance due. I have a good credit score for having both of these mistakes with the middle score of 678 but the foreclosure date is the big question. I have been told by many people that most companies want 3 yrs out of foreclosure but I am hearing of some that only want 2 yrs out. As soon as I am past this date I should have no problem getting A paper rates. But....
When does the date of foreclosure start?
My Loan broker wants me to write a letter to the mortgage company and have them report the balance as a zero balance and thinks that the underwriters will see this and revert back to the BK discharge date. Is this correct????
Will the mortgage company then post the correct date of foreclosure? And any help on how I would word a letter to the mortgage co. about reporting as a zero balance without getting too much info reported. Should I wait to report this to the agencies and see if the mortgage company reports it correctly.
I know I have asked alot but if anyone can help on these I would appreciate it.