gm7226, Home Buyer in Simi Valley, CA

I gave my house up during my 2008 bankruptcy. Bank of America didn't foreclose the property until 2012.

Asked by gm7226, Simi Valley, CA Sun Mar 24, 2013

I had a bankruptcy in 2008 after losing my job. Since then I've rebuilt everything. I decided to buy a home this year. I got pre qualified, found the home, went through the mortgage process and right at the end it hit a snag. It turns out that although we have paperwork signed off by Countrywide (Now BofA) and I, they let the house sit empty for 4 years before taking it back. Now I'm being told because the foreclosure took place in 2012 I won't be able to buy a home until 2015...7 years after my bankruptcy. My lender said he has never seen his 11 years in the business and his co-workers who have 20 years in the business haven't either. Has anyone heard of this happening? Can Bank of America do this? Do I have any options or am I totally screwed?

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11
I am having the same problem. I surrendered my house in a Chapter 7 Bankruptcy with BofA in 2010 but BofA refused to foreclose. They told us we had to move out, so we did as part of the bankruptcy. They sent someone out & changed the locks on the home. It's now March 2014 & they just sent me a bill for $1300 saying I need to keep the house insured. They are not going after me for the mortgage but they removed us from the home, locked the doors & are still billing us for taxes & insurance. It's absolutely insane. I tried to get a lawyer but they said there was nothing they could do about it since the bank was not going after me for the mortgage. We cannot force them to foreclose so this may go on indefinitely.
0 votes Thank Flag Link Sat Mar 15, 2014
I am going through this same thing with Bank of America, they still have us down as owning the house and that our bankruptcy was dismissed, and it was not dismisses, I have faxed them the paperwork at least 5 times a year and still nothing, now I cannot buy a home either.
0 votes Thank Flag Link Wed Feb 5, 2014
It will depend if you made your home part of the bankruptcy. You should have signed a deed in lieu of foreclosure and been done with it. you should ask the attorney that handled your bankruptcy.
0 votes Thank Flag Link Tue Oct 22, 2013
I did try to do a deed in lieu of foreclosure, B of A refused to accept it, and they just told me that since I spent the last 2 and 1/2 years re building my credit so now I don't qualify for a short sale either. I don't know what else to do, they will not move on anything.
Flag Sat Mar 15, 2014
At least BoA finally took your house back. We gave our house back to the bank in Aug. 2007 and they still won"t do anything. They won't put it in foreclosure, even though it was in preforeclosure in 2007. they won't modify the loan, they won't do a short sale, the wouldn't accept an offer that would have paid off the loan and most of the escrow account, nothing. I take that back they will do one thing keep adding penalties and interest for the last 4 1/2 years. Good luck with your new home and congratulations for getting your life back together.
0 votes Thank Flag Link Tue Oct 22, 2013
CFS Mortgage, http://www.cfsflex.com, has a flexible loan program. They allow a mortgage after a foreclosure, short sale, or chapter 7 bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes Thank Flag Link Sun Aug 4, 2013
Not true, there is no California law that requires a bank foreclose on a borrower.

Bad advice,


Jory Blake
Web Reference: Http://www.joryblake.com
0 votes Thank Flag Link Sun Mar 24, 2013
You Can best talk with a good Real Estate Attorney as there are some things that i cannot advise but you do have a legal recourse should you decide to pursue it.

Good Luck
0 votes Thank Flag Link Sun Mar 24, 2013
Do you know of someone I can talk to? I am willing to pursue it.
Flag Wed May 29, 2013
Do you know of anyone I can speak to?
Flag Wed May 29, 2013
Thanks for sharing!
The single problem here is that lender guidelines base the 3 year period waiting from the recording date of transfer of ownership. There is no way around this that I have heard of ...Lenders?
The fact that they did not take possession sooner, and allowed you too have legal responsibility , was mostly likely planned and intentional on their part for reasons most consumers aren't aware.

There are certain cases where a short sale is not the best option, clearly yours was one of them.

Solutions- There are certain new home builders that offer interim financing for folks in your position.
Also, you can subscribe to "seller carry", "lease option" or other similar type listings.
You can also locate a short seller who is not terribly upside down and offer to assume arrears and continue making payments until such time you can obtain your own finance.
You may be able to locate a portfolio lender who will work with you.



Jory Blake
951.742.3751
Web Reference: http://www.JoryBlake.com
0 votes Thank Flag Link Sun Mar 24, 2013
This all went down over the last few days so I don't know the answer. I do know there is no foreclosure listed on my credit report. Because the BK is almost 5 years old nobody thought there was going to be a problem. Has anyone heard or BofA taking this long?

I was in the process of begining the short sale process in 2008. I was then advised that lenders were begining to go after people who did short sales and bankruptcy would prevent that from hapening. Then of course this happens.

I honestly feel that BofA is holding my life hostage in a way. Everyone who has gone through this process has had a fresh start rather quickly while I have to wait 7 years? Since giving the home back in 2008 I have moved my family 3 times based on landlords selling the home we live in or raising rent. I have young children who have now been in three different schools. All I want is a normal, stable life. But I can't do that because of this long delayed foreclosure.
0 votes Thank Flag Link Sun Mar 24, 2013
One more thing please....

I dont believe the wait is on the BK , it would be on the foreclosure.
In a general scenario,there is a 3 year waiting period for an FHA insured loan from recording date of foreclosure and discharge date of BK ( Im sure some lenders will clarify this point)

Also , you are not totally "screwed" , but will most likely pay a higher sales price and higher interest rate in 2015.

Had you of completed a short sale, this most likely would have been a non-issue as a new buyer would have taken legal possession and recorded in 2008/2009. This is also the preferred way to dispose of an asset and most likely reduces the banks losses overall.


Jory Blake
951.742.3751
Web Reference: http://www.JORYBLAKE.com
0 votes Thank Flag Link Sun Mar 24, 2013
Ok, quick question for your lender....Did you verify the recording date of the foreclosure before telling me I could obtain a loan?

It is easy to print out a pre-approval letter and get everyone scurrying about showing homes and writing offers.

I have encountered something similar with a great buyer and discovered that if the lender would have taken the time ENSURE the client was "good to go" , it would have saved them significant money and avoided a great deal of stress and disappointment.

Please post your answer so other buyers can avoid this ...

Jory Blake
951.742.3751
Web Reference: http://www.JORYBLAKE.com
0 votes Thank Flag Link Sun Mar 24, 2013
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