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I am unsure if I should have posted this on the bankruptcy board or mortgage board - sorry...
Here's my "simple" scenario. I have spent many hours searching, but still remain confused and unable to find a clear answer.
1) I plan to file chapter 7 within a few months.
2) I will NOT be reaffirming my mortgage. I estimate that the home is worth about 30k less than what I owe - however, I do like the home and wish to remain living here for now.
3) I do not have a 2nd mortgage/HELOC.
4) I have never missed or even had a late mortgage payment, and will continue to keep current throughout the bankruptcy process.
5) Post discharge, I will continue paying the morgage and keeping it current.
6) In 2-3 years, I would like to buy another home, and stop paying the discharged mortgage.
7) I live in the state of Louisiana, if it matters.
I am very confused because I have read that in order to get another FHA loan, for example, in addition to the 2 years from discharge date waiting period....if I keep my mortgage current post-discharge, the deed will obviously never transfer and it'll never be forclosed until I stop paying...and that I would need to stop paying, wait for forclosure, THEN wait another 3 years??? So, the rule is actually the LATER of 2 years from discharge date or 3 years from the foreclosure/DIL? So, in actuality, I'd be delaying/hurtng my chances of purchasing another home until I finally stop paying on the discharged mortgage and let them forclose?
Please clarify!
Foreclosure and Bankruptcy on the Same Mortgage
If a mortgage debt was discharged through a bankruptcy, the bankruptcy waiting periods may be applied if the lender obtains the appropriate documentation to verify that the mortgage obligation was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting periods must be applied.
IME from a practical POV, the u/w generally wants to see the ultimate disposition of the property and apply the wait period to the latest derog. In fact, I have a matrix from several lenders (identical matrix) that specifically addresses each type of derogatory and lists the wait periods applicable by loan type (conventional, FHA, VA, USDA).