@Anonymous wrote:
I am stuck in a very hard situation. My chapter 7 bankruptcy will be 3 years this November. I am getting conflicting information from mortgage brokers regarding FHA loans. Because the property was never forclosed I will not be able to obtain any loan and the past three years of my life has been a waste.
I might be able to do a conventional loan but that's not for another 4 years!
I do not know if I have any grounds to file a law suite against the lender for holding me hostage.
Anyone with a similar situation? Is it possible to get FHA funding with this type of situation which is completely out of my control?
Actually, you have control of the situation.
You don't have to bring suit against the lender for delaying your f/c.
All you need to do is short sale the property. Yes, even after you have surrendered it in BK and after you have moved out of it - you can short sell it.
What the new lenders are saying to you is that they measure the time from when the deed passes from you to either the bank or a new buyer. This can be in the form of a foreclosure, a Deed in Lieu or a short sale. I run into this daily (I'm a Realtor in S Fl). The bank may even offer you a Deed in Lieu if you start the short sale process. They ususally won't do it until you are 60 days or more into the short sale process with no contract.
BTW, one of the easiest short sales to do is after you have received your discharge in a BK. You have already discharged your personal liability for the debt, you are just getting rid of the mortgage lien on the property when you short sale it.
