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Profile picture for hp 2002grad

FHA loan after Bk7

We have a discharge date of February 27th 2012 on a BK7 we included our first and second mortgage in the BK7 and did not reaffirm. We stayed in the home without paying in hopes of getting a modification after BK. In short we have not been able to get a modification. We would like to know if it's possible to get an FHA loan with the 2 year after bk date coming up next year? We have reestablished our credit (678) and have a strong work and income history. Our home has not been foreclosed on and BofA is dragging its feet on either a modification or short sale. We would like to get out before either occurs, any advice?
  • November 12 2013 - Tucson
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Answers (13)

Hi HP,

Hopefully you have gotten things sorted out by now. If you were successful in doing a Short-Sale on your home you may be eligible for [self promotion deleted by Zillow moderator. Please see our good Neighbor Policy for posting guidelines]

Thanks,
Craig Bosse
  • January 09 2014
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FHA Back To Work Program waives Foreclosure, Bankruptcy, And Short Sale waiting periods. So, you dont have to wait for 3 years before applying for a refinance. However, in your case where the house has not been foreclosed yet, your best option is to apply for loan modification.
  • November 17 2013
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Unfortunately you are currently in limbo, until some action is taken on your current home.  Depending on what the action is, will depend on what your waiting period will be.
  • November 13 2013
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Has your bank actually foreclosed the property yet? If not, then your waiting period hasn't really begun yet. You may want to speak with some lenders directly to get some further advice. Well I hope this helps, if you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
  • November 13 2013
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Hello:  I hate to be the bearer of bad news here, but "waiting period" after a foreclosure is generally 36 months, but can be lowered to 12 months under the "back to work" program.  The problem with your situation is that the property is still in your name, therefore the clock on the foreclosure hasn't even started ticking yet.

I would think that your best bet would be to stay on your current lender and see if you can convince them to modify your loan and therefore get you back on track or conversely, go ahead and foreclose so that the clock can start ticking.

If you have any other questions or would like to talk, please feel free to reach out to me through my profile here.

Thanks,

Bob
  • November 13 2013
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Profile picture for hp 2002grad

Thanks for all the answers to my question. It seems I am either going to have to keep fighting with the bank to do a modification or get them to allow me to short sell. Frustrating thing is that I had everything in order and qualified for the back to work program, just not a foreclosure.

  • November 13 2013
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There are so many options out there now for people in your exact situation. Take a look at my profile as there is information on a lender that can help you sort all of this out!
  • November 13 2013
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Profile picture for Lisa Ammons
As suggested by others, you should speak to a lender, however, I do believe the fact that your home has not transferred over to the bank will be a problem for you. Bankruptcy does not save you from foreclosure.
Many people do not get a clear explanation of the process. The bank will probably make you wait at least 2 years from the final judgment summery. Lender guidelines change all the time... so its best to sit down with someone and plot a plan for the future. You can reestablish and own again... it just take a little time and planning. Best of luck.
Lisa Ammons
:)
  • November 13 2013
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Please talk with a lender, if you click on my profile there are two fantastic local lenders on my profile.  Don't guess, find out exactly what your options are.  I had clients that filed Chapter 7 and were able to purchase a home 2 years to the day, but it depends on each person credit and other factors.

You can talk with the lender about the ramifications of a short sale on your credit as well.  Other than that, the person you should be talking to is an attorney to go over your legal options. 

The good news is that it is free to find out, and no obligation, talk with a local lender today.



I wish you the best of luck.

Spirit
  • November 13 2013
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I am afraid the answer is no. The reason is your home has not gone back to the Beneficiary yet. This can be frustrating for people like you who think by filing BK7, you are closing the door. But that couldn't be further from the truth. Your waiting period actual doesn't start until the bank foreclosures on the property or you pass title. I am amazed today that so many Attorneys still haven't figured this out yet, or may they it's not important to them.

There are several remedies, but since I am not Attorney I can't comment or give you advise. FYI, I had a client who called about getting a VA loan and it had been 3 years since his BK7 was discharged. I asked him the address of the previous property and I did a title search and believe it or not, the home just went into foreclosure a couple months before his call.  I told him that he would have to wait another 22 months. He was livid!

I explained although the VA only requires a 2 year waiting period after a BK7, it also had a 2 year waiting period after a foreclosure. For you, that wait will be 3 years in order to apply for an FHA loan unless you qualify for the new Back to Work Program through FHA. But either way, you can't even get up to bat until the house is out of your name.

Take care,
  • November 13 2013
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Profile picture for hp 2002grad

I've spoken with a lender and he said to wait until the 2 year period before doing anything, but couldnt guarantee a loan.

  • November 13 2013
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Profile picture for GMerino
You really need to take care of your home that you are currently living at.  If you have not made a payment to your loan, I do not think any bank will make an exception to give you a loan.  If you could do a loan modification to stay in your home that would be best as it will be tough to get any type of loan at this point.  If you cannot do a loan modification get the short sale process going or contact a realtor to find out what your home is worth, perhaps it is worth more now than what you think.
  • November 12 2013
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Have you spoken directly with a lender?
  • November 12 2013
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