Vondelle, Home Buyer in Mountain House, CA

I surrendered a home in 2010 chapter 7 banruptcy. To date the home is still in my name as well as foreclosure. My concern is....

Asked by Vondelle, Mountain House, CA Wed Mar 21, 2012

Will I ever be able to purchase property? It November it will be 2 years

Help the community by answering this question:


how do i get my house out of my name so i can get a new house
0 votes Thank Flag Link Fri Nov 9, 2012
Hi Vondelle,

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.

Fannie Mae

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.

Freddie Mac

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.

Kindest Regards,
Cindy Mello
0 votes Thank Flag Link Wed Mar 21, 2012
Are you occupying the property? I would assume so. Whether you make the payments or not after a bankruptcy doesnt affect your credit because your mortgage was included in the bankruptcy and never reaffirmed. However, to change title to the bank now, you will need to short sale or foreclose. Both options will affect your ability to get a loan in the future even though they wont necessarily impact your credit score from what I've read. In your case, you should probably short sell asap so by the time your 2 years are up in November you'll have the short sale 4-6 months behind you already.

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.

Drew Jacobsen
Broker, Realtor, SFR
209-855-1308 Direct
209-229-1018 Fax
DRE # 01416016

Mountain House
Real Estate Group
DRE # 01885423
Web Reference: http://mhrealestate.com
0 votes Thank Flag Link Wed Mar 21, 2012
Hi Vondelle,
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.

Taj Weldon
DRE 01816152
0 votes Thank Flag Link Wed Mar 21, 2012
For foreclosures, it takes about 7 years to clear from your credit history....
0 votes Thank Flag Link Wed Mar 21, 2012
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