Reply
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Foreclosure/BK confusion...question

I thought that just applied to the debt owed. But when the foreclosure happens, it happens because the bank has to go though the process to get the home out of the person's name that filed BK 7, and the records pertaining to that are filed as public record. So it sounds like you are saying the lender will ignore the public record because the person wasn't financially liable for the house when it went into foreclosure?
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: 3,302
Registered: ‎06-09-2010
0

Re: Foreclosure/BK confusion...question

You can put it that way, but I dont think its really about ignoring. Their policies and requirements can change as fast as the INK dries on paper. lol

 

When you file for BK the home is already granted back to the Lender, unless other arrangements are made, in which case none of this applies.

 

The technicality is the home is foreclosed on during this proceeding, what the Lender does as far as when they transfer information is on them, and wouldnt impact the person who filed BK.

 

There are many reasons why this happens but mainly its there to help and protect the consumer. For example, you file BK, Bank sits on property for x amount of years, because the housing market is low or whatever the reason, it takes them 5 years to proceed with the foreclosure, should the consumer be punished because the Bank was doing whats in their best interest?

 

While filing BK you still have a waiting period to purchase a home and that waiting period is considered when a mortgage is included in the BK. If you include a Government Insured Home such as FHA for example, you have to also go by FHA requirements to purchase another FHA insured home after filing BK and included your FHA mortgage in the filing.

Good Luck
May all your dreams and wishes become a reality!
Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012
0

Re: Foreclosure/BK confusion...question

Thank you both for your opinions! I am really hoping we do not have to wait 3 years from whenever they decide to foreclose. As I mentioned, the first delinquency was 7 years ago...they are due to fall off this summer. Our BK was 4 years ago and they weren't FHA mortgages. It wouldn't be fair that we have to wait so long bc they have taken this long to sell/foreclose.
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Foreclosure/BK confusion...question

Okay. Thanks for explaining it further. It sounds like OP has a good chance of getting a mortgage and that is the good thing.
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
Contributor
Amythyst
Posts: 139
Registered: ‎01-22-2013
0

Re: Foreclosure/BK confusion...question

[ Edited ]

Umm... being someone who filed Bankruptcy and had a Foreclosure happen AFTER the bankruptcy on a home that was included in my bankruptcy .... yes it does happen this way.  Just because you include a home in a bankruptcy does not transfer it back to the lender.  The only thing the bankruptcy does is get rid of the loan ... the deed of the home is still in your name.  Hense people that do "ride throughs" where they include their home in the bankruptcy and then stay in the home and keep paying on it.  So, in my case for buying a home I had to wait 2 years post my discharge and then 3 years post my foreclosure date (the date that the home transferred out of my name).  This is the rule for most lending.  For conventional I believe its 4 years post foreclosure date and programs like Navy Federal's 100% mortgage requires 7 years.

 

I was able to get preapproved before my 3 years post deed transfer but I am not allowed to close before the foreclosure is completely 3 years post.  This is for FHA.

 

But, for the OP... if the actual deed was never in their name then the foreclosure should never have been attached to them.  But I find it wierd that they came after the OP for the mortgages but the homes were not actually in their name?  Maybe I'm just misunderstanding the posts. :smileyhappy:

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Foreclosure/BK confusion...question

You got it almost right. They had their identity stolen and a friend of a family member took two mortgages out in their name and they tried to fight it in court but eventually had to file bankruptcy when the lenders came after them for the money after the thief defaulted.
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
Contributor
Amythyst
Posts: 139
Registered: ‎01-22-2013
0

Re: Foreclosure/BK confusion...question

Gotchya... but I guess I'm confused how you take out a mortgage in someone else's name but the deed is in another name?  Are you allowed to put anybody's name on the deed that you want?

Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012
0

Re: Foreclosure/BK confusion...question

I never said the deed was in someone else's name. The two buildings were put in his name fraudulently during a time when it was very easy to get a mortgage. We fought for a few years to "prove" identity theft but ultimately it became too expensive and we had to move on. This included the choice to file BK.

I read up on this more today and it seems that either a foreclosure or a bankruptcy will take place but not both in terms of credit reporting and publi records. On his credit report under public records there is no foreclosure listed and the mortgages say discharged in bankruptcy. When I checked with the recorder of deeds, there are a few things recorded but none that actually say "foreclosure". There are mostly just documents between mortgage companies listed.

We are now so confused as were not told about this when we filed 4 years ago. I don't know where I can find a straight answer. Any suggestions?
Established Member
mommynurseto3
Posts: 18
Registered: ‎07-29-2012
0

Re: Foreclosure/BK confusion...question

Also, I don't see how it is fair that the bank has taken 7 years to foreclose and now we will have to wait an additional 3 years whenever they actually get around to foreclosing?? That would span over a decade. Something isn't right. I must be missing something or not understanding the legality of this.
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Foreclosure/BK confusion...question

Have you talked to a broker about this? I would go see a broker and bring his credit reports and have a frank discussion with him. Tell him everything that happened and he will look at your credit report and hopefully pull the public records up on the house since it is free (I would bring a printout of the public records you found on the house just in case) and then he will discuss with you your options. Your situation is very unique so you may need to talk with 2-3 brokers and then put the pieces together to come up with a path to homeownership.
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

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}