08-26-2012 04:35 PM
also when you speak of the foreclosure being public record what does this mean, are you referring to the auditors office or credit report making it a public record. so can you clarify one more time that it DOES not effect my credit again since its been discharged am I correct on this I am just trying to understand all of this and it is so confusing.
The f/c is in the public records of the county where the property is located. It shouldn't be on your cr report at all because your mortgage was included in your BK.
Are you making payments on your current mortgage? USDA will want to know the status of your current mortgage even if it is iib. They don't want to get involved in what is known as a "buy and bail" situation. Buy & Bail means you buy another home and then dump the one you are in by not making the payments. That's why the lender has to see what you are doing with your current residence. If you are renting it out, you will need to show a lease and qualify for the current payment plus the new payment.
If you short sale the property you don't have to pay the realtor fees or attorney fees to close it. Those fees come out of the proceeds of the sale that go to your bank.