I did chapter 7, five years ago and did not reaffirm my mortgage, Have never missed a payment. There is no payment history or record of the mortgage on my credit report. I now want to do a strategic default on the mortgage, save that money for a down payment on another house. What are the consequences, since they cannot report on my credit report as it was part of the CH 7. Can I get a loan in 12 months with a foreclosure.

Both of the answers are correct above this answer. The one thing that was not mentioned is that the waiting period does not start until either the bank has taken over the property with a special warranty deed, or there was a short sale. In short if the bank has not taken over your property via title your waiting period has not even started. You must force the bank to take over the title, consult an attorney. Any questions please call or email me. Barclay Butler 224-420-9990, bbutler@barclaybutlerfinancial.com. Barclay Butler Financial Inc.

Probably not.. The debt was washed away as part of your CH7, But the lender will have the right to show the home was foreclosed, and all lending guidelines have mandatory waiting periods for folks with foreclosures. for most it's 3 years, with a few other programs that will allow a purchase as soon as 12 months.. however if you plan on a "Strategic Default".. then the answer is absolutely NO... since you would be attempting to take advantage of the market and that is not an acceptable. Also understand that the waiting period starts when the title is no longer in your name.. so if you vacate the property and wait for the lender to foreclose, and that who process takes a year.. then that's when your mandatory waiting period starts.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Hi there,The short answer to your question is no. The minimum waiting period on a foreclosure is 2 years for a VA loan, 3 year for FHA, and 7 years for conventional. And those waiting periods could change between now and then. My assumption is that you have little or no equity in your current home, which is why you are considering this route. I can tell you that even if your mortgage is not reported on your credit report, any lender WILL discover it when you apply for a new loan. There are too many checks and balances now to try and beat/cheat the system. I am happy to discuss your situation with you to try and figure out a creative way to get you into a new home, feel free to reach out to me.

No- you will need a min of 3 years for FHA and 7 years for a conventional loan.

Yes! You can apply for a mortgage today. My number is 630-687-5800

If you have a foreclosure after a BK I do not know a lender that will touch the loan even after the normal waiting periods for a foreclosure. Typically a lender wants perfect credit history after a BK or they won't even consider a loan. Even though your mortgage doesn't currently report to your credit, you have to list any property owned and once you do they will ask for a mortgage history from that lender.

If your income allows for it - you should purchase another home before you default on the current home/loan.

The waiting period to buy again from this circumstance will begin from the time the title of the home changes, not the time of the bankruptcy. Your really want to speak to an Attorney on this one, it will be money very well spent. I have been told in a similar situation, that you may have a claim against the bank if the lack of re-affirming your Mortgage was the mistake of the bank.