Home Buying in 07070>Question Details

Needhelp, Home Buyer in 07070

With a bankruptcy discharge including mortgage Oct 2009 but the bank waited until May 2012 to foreclose. Is there a way to avoid waiting three years?

Asked by Needhelp, 07070 Mon May 21, 2012

Any way to avoid waiting three more years to buy a house. My credit score is up. I have had no late payments on anything in three years. This doesn't seem right.

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Hi Needhelp, The first item to check is a full credit report that was run recently in the last 30 days. A loan officer will research by the credit report which year and month the foreclosure (120 days past due) has ended. At that point you will add three years to when you can obtain a mortgage with a bank, i my 8 yrs as a loan officer i dont know of any bank that will lend on a residential property with a foreclosure on credit report before that time period. The only options would be to use another persons credit or if you want to buy a commerical property (5 family property or higher) you would need at least 30-35% down and the loan would be by a "hard money" lender. They would charge points (5-10 points) and the interest rate could be 10-15% and the loan is not often a fixed rate, it often has to be refinanced in the future 5,10 and 15 yrs down the road or you can pay it off in full. Please email or call if you want to discuss, regards spencer k.

Customized Mortgage Solutions
Spencer Kinsley
Mortgage Loan Originator
NMLS# 462553
One Dewolf Road Suite 101
Old Tapan, NJ 07675
Office: 201 768 0090
Cell: 914 708 8303
Fax: 201 768 0093
0 votes Thank Flag Link Tue Dec 25, 2012
I actually had a client in a similar situation and my mortgage contact told them that they would have to wait 3 years after the actual foreclosure date. It would have made the wait time sooner had you sold the home on a short sale or did a deed in-lieu of foreclosure before they lender foreclosed.
0 votes Thank Flag Link Tue May 22, 2012
Unfortunately, I had been told in 2009 they were going to foreclose by the bank and my attorney and for whatever reason they never did. My ex-husband filed bankruptcy first forcing me to do the same and the bank never sent me any correspondence. It wasn't until I started talking with a mortgage lender to position myself for a fall 2012 purchase that I found out the house was sitting vacant. The bank held on to it even though they both of us filed bankruptcy in 2009.
Flag Tue May 22, 2012
I would contact a mortgage representative some programs may be available. Here is the person I turn to with any mortgage issues.
Richard Noury
Loan Officer
Jersey Mortgage Company
20 Commerce Drive
Suite 340
Cranford, NJ 07016
Office: 908.603.1110
Fax: 908.592.0253
Email: rnoury@jerseymortgage.com
Licensed Mortgage Banker-New Jersey Department of Banking and Insurance
0 votes Thank Flag Link Tue May 22, 2012
Call your BK attorney. I am not an attorney, but my understanding is that if the property was included in your filing, did your obligation to that debt ended at the time the bankruptcy court approved your filing? Did you move out and sign over the deed at that time? You need a BK attorney to help you with this. It's beyond the scope of REALTORS because we cannot provide legal advice.
0 votes Thank Flag Link Mon May 21, 2012
The BK attorney said since I was discharged and the house was included that's all I needed but in dealing with a bank in looking at a new loan they said that FHA will require the three years from the foreclosure??? I did move out almost three years ago.
Flag Mon May 21, 2012
Deborah Madey, Real Estate Pro in Brick, NJ
If your mortgage was discharged with the bankruptcy in 2009 - why didn't the bank accept a deed in lieu of foreclosure 2 1/2 years ago? They actually went through the entire foreclosure process? Did you reaffirm the debt of the mortgage during your bankruptcy or it was discharged as part of it or did you live in the house without paying your mortgage for all that time before they actually foreclosed?

I would think a loan officer/mortage rep would know more about qualifying for a mortgage sooner than the 3 year period.
0 votes Thank Flag Link Mon May 21, 2012
I don't know why there was no deed in lieu of foreclosure and I had no idea nothing had happened until a few months ago. Unfortunately, my ex-husband was first on the loan and they would never send me any correspondence. I found out the house was still sitting there in going through the process of getting ready to purchase a new home. I did not reaffirm the debt and I moved out almost three years ago. My attorney says I should be free and clear but the banks I have talked to say that FHA goes from the 3 year mark of the foreclosure, even though I was relieved of the debt October 2009.
Flag Mon May 21, 2012
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