It is not uncommon that the lender still as the home in your name and has not foreclosed yet. I just listed a home whereby the seller filed bankruptcy 3 years ago and the house is still in there name.
They chose to short sale there house as it is saving them from what I call a double whammy, a foreclosure and bankruptcy. If you choose to short sale, you will not be liable for any taxes between the difference of what you owe and what you settle for. Under the Making Home Affordable act, if you short sale your home before December 2012, you are exempt up to $1,000,000.00 per married couple.
Fannie and Freddie have recently changed there guidelines to purchase after foreclosure.
will now prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years
If there are "documented extenuating circumstances." the mortgage prohibition is for three years.
After five years, borrowers with foreclosures in their files will have to put at least 10 percent down and need minimum FICO credit scores of 680.
will now prohibit foreclosed borrowers from getting another mortgage for seven years
The company also claims they will "aggressively pursue walkaways to preserve our deficiency rights" where permitted by state law.
November would be two years from your Bankruptcy, however you still have not dealt with the house. You have absolved yourself of the note, but not the house. You still own the house. In order for title to be released, the lender has to foreclosure, or you have to short sale. If you choose foreclosure, your credit profile will indicate a public record of foreclosure. That's where this hurts you when you go to obtain a new mortgage loan.
If you short sale, you will not be liable for any deficiency balance, as that's covered in the bankruptcy. If you had not filed bankruptcy, California law SB458 states that, if you short sale, you are not responsible for any personal liability on that difference in what you owe and what it sold for.
If you want to discuss your specific situation more, please call me at 209-451-5446. I would be happy to assist. I am a short sale specialist in Tracy/Mountain House, CA. I have helped dozens of homeowners short sale there property, and I also assist other agents with there short sales because of my track record and knowledge of the short sale process, guidelines and laws.
You could potentially be buying a house by the end of this year or early next.
Im certified by the National Association of Realtors as a Short Sale and Foreclosure Resource. If you have any questions you'd like asnwered directly, please dont hesitate to call or email me anytime. I'm a licensed broker who has been licensed for over 8 years now and I live in Mountain House.
Broker, Realtor, SFR
DRE # 01416016
Real Estate Group
DRE # 01885423
Typically you are eligible to purchase using an FHA loan 2 years after chapter 7 BK discharge.
Every situation is different. I have an excellent lender that processes clients with foreclosures and bks in their past.
Please call me or email for my lenders contact info or if you have any further questions.