The great misconception is people think that because you just "walk away" and "let it go to foreclosure" that that wipes your hands clean of anything having to do with the property ever again. That just isn't so. This is regardless of how much you may have struggled to obtain a loan modification when in the end, the bank just didn't give a gosh darn about you or your situation or needs.
It is only with a Short Sale that we could have worked with Both lien holders to consider your loans as "Paid in Full" and we could have gotten that in writing.
Too late for a short sale now, obviously. You should consult with a Real Estate attorney & show them all your paperwork, as them "Does my prior 2nd lien holder have the right to pursue me for a deficiency judgment and do they have the right to keep sending me billing statements? If not "what can you do for me to get them to STOP?"
I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like an attorney referral.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
100% Short Sale Success Rate in CA
On qualifying for a loan it really depends on how the 2nd is recorded on the credit report. Have you pulled your credit recently? Since its been 3 years since the foreclosure you may qualify for a new loan. Please call me or email me and I will send you a simple pre-qual form and my in-house broker will help you navigate your credit and paperwork to see if you can qualify and if so what you qualify for.
We will also be able to help you tackle anything that is appearing on your credit that might be hurting you.
Thank you for your time and have a great day!