01-26-2013 11:04 AM
This is going to sound extremely complicated but I am hoping that someone may have an answer for me.
Long story short, my husband had his identity stolen during 2005 when anyone with a pulse could obtain a mortgage. They were friends of someone in his family and he was initially interested in purchasing some real estate so he had filled out an application for pre approval. He then changed his mind when he found out what they were selling. Fast forward to 11 months later, we began recieving calls from Countrywide that we were delinquent with the mortgage on two buildings he knew nothing about. We fought in court to clear his name but after 13,000, we had to give up and filed BK. That was filed in 2009. There were two properties included. Neither of them were ever "ours" and we never lived in them, never had any acct numbers, etc.
So now we are hoping to buy a home this summer. It has been almost 4 years from BK. We have been successful at removing a lot of the old accts that were included in bankruptcy. Credit scores are doing better.
All of the loans related to those mortgages are now owned by BofA. On his credit report, it states "included in bankruptcy". Under public records, there is only BK mentioned, no foreclosure. Since these initially became deliquent 7 years ago, they are due to fall off his report this summer(this is what is says on the experian report). I called BofA after getting some great info on this site to ask if they would show a goodwill gesture and removed the accts a few months early. Well, to my surprise, after a lot of digging, I am finding out that one of the buildings hasn't ever been foreclosed!!! FOUR YEARS after the ch 7 BK and 7 years after first deliquency. What a nightmare.
So my question is, how on earth can we go about getting a mortgage this summer? I am fully aware of the 3 years post foreclosure rule BUT I am wondering what will happen since this is not on his credit report and it is actually due to fall off due to the SOL by the time we apply. Has anyone ever heard of anything like this? I am not even quite sure how to find out if it has foreclosed. The properties are in Cook County IL and when I searched the recorder of deeds sight I found a bunch of info with the pin numbers of these properties but I don't know how to read them.
One says "deed" and has another persons name as the grantee in 2010. I am assuming foreclosure proceedings were done by then. For the other property, something named "release" was recorded in 2012 with my husband listed as the grantee and the year before "assignment" was recorded with a mortgage company as the "grantee". This is so confusing and our BK lawyer never mentioned any of it.
Just wondering how this will be viewed to a mortgage broker and in terms of an FHA approval if it's not on the report or the public records.
thanks for any input.
01-26-2013 11:40 AM
While it seems difficult to understand, it really is pretty simple.
You filed BK and those items (homes) were included in the BK. You abide by the BK rules on waiting period according to the type of BK.
The only other thing that comes to mind quickly is depending on the type of loan that was included in BK, for example FHA, if you plan on purchasing through FHA you would have to meet their requirements on previous owned homes included in BK.
When you decide to purchase, spend some time with your LO and or Broker, they will guide you in the right direction. You can do this over the phone, so you should be able to receive different opinions and compare what is best for you and your family.
01-26-2013 01:32 PM
01-26-2013 01:38 PM
I believe there is a waiting period for both the BK and the foreclosures. You could be in trouble since most lenders won't approve you until 3 years after the foreclosure sale. So if the lenders searches and finds your name as the last owner to property and that the property is in foreclosure still and hasn't foreclosed, depending on when it finally forecloses, you could have to wait at least 3 years. If someone took out this mortgage in your name, your name must be tied to the property and in the public records system somewhere. Perhaps you should do some more digging there. Go up to the county clerk's office if you have to.
Is it possible it was a short sale?
They filed BK and no foreclosure.
A Bank or Lender is not allowed to file a foreclosure on someone who filed BK with said property included in the BK.
That is one lawsuit waiting to happen.
01-26-2013 01:54 PM
01-26-2013 02:01 PM
01-26-2013 02:19 PM
01-26-2013 02:31 PM
I can do that but I have read of others having this issue when they filed Chapter 7. But they probably filed after the foreclosure, which is why they got a foreclosure. I guess if you file Chapter 7 before the foreclosure, you don't get a foreclosure? The thing is common sense tells me that if you file a Ch 7 before the house goes into foreclosure, the house will still go into foreclosure as they don't sit in limbo after you file a Ch 7. Foreclosure precedings still begin and your name being transferred off the deed is still recorded as public record. Unless you are trying to say the lender won't care about the foreclosure sale because it was a Ch 7 they filed instead of a 13?? That doesn't seem very fair to those who filed a Ch 13 so they could at least pay back some of their debts.
I understand I can research but this forum is a form of research as it is a place to learn from others. I am not that interested in the topic to do more research.
Not saying the rules are not the same. The way it is handled is different. You can purchase a home before being discharged with a Chapter 13 filing as long as you follow the proceedings, conditions and its approved. You cant purchase a home with a Chapter 7 with the same scenario as it doesnt pertain to a Chapter 7 filing.
Your common sense tactic makes sense and is pretty much how it is determined. If you were foreclosed upon before filing you have a foreclosure. If you file before the foreclosure then you do not have a foreclosure.
Once you file BK Chapter 7 and discharged no Creditor, Lender included in the BK can come after you for any debt owed, that was included in the BK. Filing a Foreclosure after the Filing for BK would be coming after debt previous owed.