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ch 7 discharged 2 years ago

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Anonymous
Not applicable

ch 7 discharged 2 years ago

my bankruptcy has been discharged for two years. I did not reafirm my mortgage, however i still live in the home and make payments. i have seen same type scenarios where someone tried to buy a new home and ran into issues when closing. they had problems proving the mortgage from the bankruptcy was in fact not going into forclosure's.

 

my situation, i am looking to buy within 6 months. i have about 10-20 k equity in the home.

 

my question is should i sell the house and close before i try buying new? This is obviously not ideal, however, since i have a young child.

 

 

Message 1 of 9
8 REPLIES 8
StartingOver10
Moderator Emerita

Re: ch 7 discharged 2 years ago


@Anonymous wrote:

my bankruptcy has been discharged for two years. I did not reafirm my mortgage, however i still live in the home and make payments. i have seen same type scenarios where someone tried to buy a new home and ran into issues when closing. they had problems proving the mortgage from the bankruptcy was in fact not going into forclosure's.

 

my situation, i am looking to buy within 6 months. i have about 10-20 k equity in the home.

 

my question is should i sell the house and close before i try buying new? This is obviously not ideal, however, since i have a young child.

 

 


Yes, in your specific situation it would benefit you to sell the house and then buy your new home in order to get the equity and show the HUD1 to the underwriter for the new loan.

 

To show your current payments, you will have to provide either the bank statements showing the payment draft monthly or a canceled check for each payment if you pay by check. You may need to show up to a year of payments to the underwriter since your mortgage payment doesn't show on your credit report now since the discharge.

Message 2 of 9
DallasLoanGuy
Super Contributor

Re: ch 7 discharged 2 years ago

how is the mortgage reporting?   was it ever 120+ days late?

 

Retired Lender
Message 3 of 9
Anonymous
Not applicable

Re: ch 7 discharged 2 years ago

The reporting is included in bk. I was 90 late in 2010
Message 4 of 9
DallasLoanGuy
Super Contributor

Re: ch 7 discharged 2 years ago


@Anonymous wrote:
The reporting is included in bk. I was 90 late in 2010

but it is up to date?  reporting the most recent payments?

 

Retired Lender
Message 5 of 9
StartingOver10
Moderator Emerita

Re: ch 7 discharged 2 years ago


@DallasLoanGuy wrote:

@Anonymous wrote:
The reporting is included in bk. I was 90 late in 2010

but it is up to date?  reporting the most recent payments?

 


I had assumed that no payments were reported after your discharge for the Bk 7. If you do have payments reporting you current than I amend my response to you above - they can use the credit report. However, IME once you have a Ch 7 discharge with no reaffirmation, the servicers stops reporting. That would be the only reason you need to show the actual payments you made for the past 12 months because the payments don't report to the CRA.

Message 6 of 9
DallasLoanGuy
Super Contributor

Re: ch 7 discharged 2 years ago

i dont know 100% for sure they always stop reporting. i dont know the rules.

 

certainly an underwriter would want that data updated with a supplemental report or cancelled checks\

 

Retired Lender
Message 7 of 9
Anonymous
Not applicable

Re: ch 7 discharged 2 years ago

they have stoped reporting due to the rafirmation never being signed. If i have checks that prove i have been making payments, does that mean i can buy a new house before selling the old one? As stated in an earlier post, i am trying to avoid selling my house and moving twice in a couple months.

Message 8 of 9
DallasLoanGuy
Super Contributor

Re: ch 7 discharged 2 years ago

i think you will have trouble.

even though you are not responsible for the debt.... you are paying it. and walking away would result in a foreclosure.......

 

your loan officer would have to put a full file in front of an underwriter..... 

 

try to avoid some 'yes man' type loan officer who approves you on the spot.

 

 

Retired Lender
Message 9 of 9
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