Need some thoughts and opinions in General.
We bought our first homes in August 2008 -FHA mortgage.
Two tears later we bought another home, September 2010 = VA mortgage. We decided to keep our first home as an investment for our kids' college fund basically.
2011 we filed for bankruptcy because my hours were cut at work. Medical bills and financial missteps led us to that situation.
Both homes were included in the bankruptcy. We only affirmed our current home that we purchased in 2010 but never reaffirmed the debt on the other house based on our attorney's advise. We haven't made any payments on this house since 2010 and were under the impression that the big bank would foreclose on it and forgot all about it.
No we applied for another VA loan with the thinking that we can sell our current house and move to an awesome school district. Everything was going fine and we even received our pre approval letter. To be sure, the LO sent our file to underwriting to make sure there would be no surprises prior to signing a contract. The LO called us this morning to advise that our loan was denied because we have "an open FHA foreclosure" but no foreclosure date yet. What?! Out of curosity, we called the bank. Our other house has not been foreclosed on for over 2 years although the mortgage only shows as IIB on our credit report.Checked the tax appraisal website - still in our name. Should we try to save the house by applying for a loan modification? And how will that affect the bankruptcy ?
Our only goal is to sell our current VA home and purchase another in the next few months. With this new information will that even be pssible ? So complicated.
