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Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012

Re: Foreclosure/BK confusion...question

Actually, we briefly spoke with someone and he mentioned(without knowing all of the details) that as long as it didn't say "foreclosure" on the CR, we would use the BK discharge date. Is there somewhere else that I should be looking at public records or would the public records section of the credit report show everything?
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: Foreclosure/BK confusion...question

If the foreclosure is on your credit report, it would note that in the comment section under the mortgage loan line of credit.

I know a foreclosure is classified as a judgement but when my first house foreclosed after filing BK 13 to try to save it, I never actually got a judgement and the mortgage line of credit just showed 120+ days past due for about 3 years and then it just started magically disappearing one at a time off my credit reports about the same time the lender, WAMU, went under.

It sounds like you really need to talk to someone else, preferably a broker. And make sure they have all the details so they can provide a definitive answer.

Each county in our state on their local website has a foreclosure lookup database. That is where my foreclosure records are so you can try looking there if you haven't already.
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Contributor
Amythyst
Posts: 139
Registered: ‎01-22-2013

Re: Foreclosure/BK confusion...question

Just because there is no public record of it on your credit does not mean one does not exist.  If you include something in BK the foreclosure will not show up on your report.  I would go to the county in which the properties are and check their records for sale information and contact the clerk to see if there is a deed of foreclosure on the properties.  I would be weary of a loan officer saying that they will use the date of the discharge as the foreclosure date... not saying its not possible but as I said, I'm going through it as well and the loan officer knew about my foreclosure even though its not on my credit report...cause they check the public records.

 

I also have to provide them a copy of the deed of foreclosure which I have to get from the county directly.  But see if the county has a public website that has real estate sale information... the county that my property was in has a website where I can go look up dates of transfer and who the property belongs to now and in the past.  If the home is in your name on the deed or was in the last 3 years ... then that could be an issue.

There are lots of people I have seen on another forum that I frequent that have been trying to get a new mortgage with a deed still in their name from a home that they included in BK and then didn't foreclose on... one person was able to get a USDA approval but had to go through tons of lenders to find someone that would actually do it for them and it was a pain in the butt.

 

But, definate check the deeds on the homes... that's the best place to start.

Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012

Re: Foreclosure/BK confusion...question

There are two buildings involved. I can see from the recorder of deeds that one was sold to someone else back in 2010. The other one had a few documents that say "assignment" and the most current from 2/2012 says "release" and has my husbands name as one of the parties.

Thanks for all of the info. This just seems so unfair that so many years have passed and we thought we just had to wait out the BK requirements. I have no idea when they will foreclose.
Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012

Re: Foreclosure/BK confusion...question

Also, they are due to fall off this summer. How would that work?
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: Foreclosure/BK confusion...question

It is the public record with your husband's name on it that is the concern. You really are not going to find an answer here because we are not allowed to see your private information, and that is for the best. All we can do is visualize what you said you have found in public records and on his credit report. But a reputable broker in your area will be able to give you more accurate info. And since some components of this are lender-specific, he may work with the right lender to get you preapproved. If not, go to the next one and the next one until they all line up and say generally the same thing, then wait 6-12 months and try again. If you stay in the dark, you won't ever truly know if you can get preapproved for a house right now or not. We aren't the preapprovers...we can only provide advice and answers based on experience.

I think we provided some possible outcomes both neg and pos but you need to talk to someone who represents one of the lenders that may be doing your mortgage loan to get their opinion.

We would love updates on how your meetings with the brokers are going and others will as well. And as you find new info, we can help back up that info and/or lay out some counters to give you a different perspective and perhaps help you pose more questions to ask your broker.

Don't give up until you have more information from the local industry. And because this was identity theft and you have court records showing that (even though you didn't win), there may be a workaround. Underwriters make decisions partly from our life story, they want to understand why what happened, happened. You never know, this could all end up in a letter of explanation to the underwriter, and lead you to approval.

If you are ready to buy now, start interviewing some brokers and go forward with the one that can you.

My last important note that is addressed to everyone that has been reading this. Monitor your credit reports at least once a week. Credit Karma and Credit Sesame are free and will give you alerts if someone took an inquiry out in your name. Identity theft often starts with an inquiry and spreads from there. Identity theft is serious and hard to prove so don't wait until it is too late. If you see an inquiry on your report that isn't yours, dispute it right away and find out the contact info to call and tell the bank that someone is trying to open credit in your name or has opened credit in your name. File a police report and involve the lender that went through with the fraudulent action. Put a fraud alert on all your credit reports immediately. Don't wait until you start receiving bills that aren't yours. Identity theft can keep you from obtaining credit for a very long time if you lose so give your credit due diligence and shred all docs that have your personal info on it before you throw it in the trash. You never know who is watching you.
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Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012

Re: Foreclosure/BK confusion...question

I appreciate all of the input and understand that you cannot see my husband's public records.  The whole situation is extremely confusing especially since I can see even here on this board that everyone believes something different.  I am hopeful that this will not prevent us from getting a mortgage.  On his credit report it states that they will due to fall off in July and September of this year.  I am going to wait and see if they just completely disappear altogether and like I already mentioned, this is not in public records(on his report).

 

I also have a customer service lady from the BofA CEO's office following this and calling me back on Monday.  I am curious to hear what she has to say.  

 

I will update this thread when I get come answers.  I am sure I'm not the only one going through this.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: Foreclosure/BK confusion...question

I wouldn't wait. Like I said, if you are truly ready to buy a house now and have the downpayment, go speak with a broker sooner rather than later. The UW will query the public records system for his name and that is what could be the issue, not what is on your credit report as what is currently there is approvable because the BK and foreclosed mortgage are both old enough to qualify you. It is the info in the public records that poses a concern.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: Foreclosure/BK confusion...question

I know it can be done, there are different requirements from different Lenders. With that being said if you get the right Broker to work on it with you I see no reason you would not be approved, pending everything else is in good shape (scores, income, DTI. etc etc)

Good Luck
May all your dreams and wishes become a reality!
Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012

Re: Foreclosure/BK confusion...question

So, just as an update, I spoke yesterday with someone from the CEO's office at BofA.  She reviewed my husband's credit report and looked up the loans(since they are so old).  I think I mentioned above that there were 2 properties involved in this case.  One foreclosed back in early 2010 and the other one JUST foreclosed in December or 2012!  It took BofA 7 years to foreclose and we are 4 years post banktuptcy.  UNREAL.

 

Anyway, the bad news is that she will not remove any of this from my husband's report(which was the original reason I contacted her).  I am not surprised.  The good news is that both of the loans are due to fall off his report in July because that will be the 7 year mark from the first deliquency.  Now I know that foreclosures can be reported under public records for 7 years but there were not reported as such because they were originally discharged in the CH. 7 BK.  She said that as of this summer, there will be no record of them on his credit report at all and that since one of them foreclosed almost 3 years ago and was never added to the public record, it won't be added at all(and she explained that this is because of the BK).

 

Still super confusing but I am confident that by the end of this summer, we will be able to obtain a mortgage.  There will be no waiting the 3 years from foreclosure date because it isn't on his report anywhere and the mortgages will be gone.  We just have to abide by the 2 year BK discharge rule.

 

 


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