Property included in Bankruptcy discharged in 2011
We had to file bankruptcy and it was discharged in June 2011. We were renting out the home and our renters have now moved out. Bank that holds the loan has not done anything and we are not in foreclosure. We did not reaffirm the house. We have however still been sending payments since our renters were paying us we felt it was the proper thing to do. We have talked to a couple of lenders to see where we are and what other things we needed to do to be better prepared for buying a home, size of down payment, documentation they would need, when I have told them that the house is still in our name they have all said that until the bank completes their process they can not help us and that after the bank completes the process we will have to wait the required 2 years again. Is this true, we have worked hard to repair our credit and feel like we are being punished 2x because the bank just doesn't care. When we asked them over a year ago how long the process can take they said it could be a month, 2 years, 4 years as long as they want..is this really true? by jmsw12 from Lacey, Washington. May 3rd 2013
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
YES , it can be true.. who is your bank?? they probably did not want it on their books, during the 3 quarter of the yr, after sept , they will then put it on their books to get it written off for the end of the yr... I had one borrower, who had a forclosure 4 yrs ago, still in their name, and they went to a realtor first before they came to me ,and the realtor did a short sale, which didnt close, and it made it a current forclosure.. it is totally nuts out there.. linda
Jerry Potter (JerryPotter)
#78 ranked lender in Washington - 37 contributions
It is frustrating I know. Unfortunately the banks can take their time when dealing with this. You should talk with a a real estate office e who has been successful in short sales. The market is rebounding in Pierce County and I'm sure Thurston County in your area isn't far behind. If you need a referral to an agent in your area that can. Consult with you let me know. You can check out my blog post on purchasing after an adverse financial event. It break downs the waiting period in each scenario and loan type. Keep up the good effort on rebuilding your credit too.
Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions
Unforturnately it can be true. Talk to their Loss Prevention Department and see if they can expedite any help.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
The bankruptcy simple relieved you of any financial responsibility on the home. But at the same time, no pay, no stay. If you now walk away from the home, the bank will still need to foreclose. The foreclosure will trigger all sorts of negative items when it comes to buying a new home. At a minimum, you will need to wait at least three years past the foreclosure to qualify for a new home. On the other hand, if you simply sell the house, there are no penalties of any kind, other than you need to be at least two-years beyond the bankruptcy discharge date to buy a new home. Remember, you are not being "punished". You caused a mortgage lender a big financial loss. No new lender has any big desire to take on your risk when you are very willing to let them suffer a loss. You must prove yourself after a minimum wait period.
Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions
Sorry, your are "stuck" with the house until your bank decides to act.
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