How to buy a house after bankruptcy?

no no no .. all lenders run a property bank ground check do not stop making payments.. you need the advise of your bankruptcy attorney.. as long that the bk is discharged , and you can qualify for both houses, then I can you your loan.. linda

You will have to wait 3 years from the sale date or sheriff sale of the master commissioner's deed is filed in the courthouse. Fannie Mae requires 7 years. FHA 3, USDA and VA 3 years also on Foreclosure seasoning

You should go back to your BK attorney.. he obviously didn't do a complete job.. And smarter people than you and me are very familiar with the " Buy and Bail" technique.. so you're not going to be able to buy another home and dump the old one after.. Just not gonna happen.. if your home was affirmed or not, the fact that your still in it says you still own it.. and since the home was the security for the loan, the fact that the mortgage doesn't show up on your credit report doesn't mean you don't owe the money.. get with your BK attorney and have him explain your options, but I'm pretty sure what the answer is going to be. If you short sell your home, you can purchase a new one 3 years after.. if you let it go to foreclosure, you can buy a new home in 3 years from the date the home comes out of your name. If you just sell the old fashioned way, you will need enough from the sale to pay off both loans... If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Like everyone has said on here - your first call should be to your attorney. If you want to buy a house now, make sure you tell him not proceed with any legal action to correct the affirmation issue until you have secured a new home loan. Next call the same day needs to be to a local lender (someone you can physically meet with) and tell him/her your intentions and the full situation. There is no hiding what is going on - our industry is very sophisticated in researching ownership and title - it is better to address it up front rather than wait for it to be found - and it will be. Plus, any lender you can trust and want to work with will not want anything to do with misrepresenting the truth or ignoring important information- if you find someone that suggests differently, run from them - Not documenting the loan application properly would constitute Mortgage Fraud. You will want an experienced lender and they will need to have interaction with your attorney. This is truly complicated and the oversight of discharging your mortgage debt properly could prevent you from being able to buy a home for the next three years. Good Luck - I am in Lansing, but you really need someone in or near Royal Oak - if you would like a referral to someone good, call me. =Mike 517 420 4800.

As the saying goes, "Sorry, Charlie". Debt that secures a primary residence is not dischargeable in bankruptcy. What is dischargeable is your potential liability for the shortage the bank may suffer when they sell the property after they foreclose. Here is the problem you have. Underwriters are the gate keepers for the vault. You have to get past the gate keeper to get money from the vault. In the eyes of underwriters, by staying in the home and continuing to make payments, you have reaffirmed your responsibility for payments. The court's position is that if you give the keys back now, your current lender cannot come after you for any shortfall. So the question is "Who are you going to get the new loan from, the court or a lender?" The last time I checked, the courts don't lend money, meaning, you will have to play by the rules set by the banks and their underwriters.It does not matter if the loans are showing on your credit or not. You have the debt (acknowledged by the banks liens on the property and the fact that you are making payments). If you do not list the debt on your application, you are committing fraud, which is a prosecutable felony. Additionally, every underwriter will run a national property search which will reveal the fact that you are on title to a piece of real estate that is not owned free and clear. Again, not listing the real estate would be fraud. So here is the dilemma you face. If you do not sell the home for at least enough to pay off all liens in full, you have a short sale. You give the keys back, you have a foreclosure. Either of these will penalize you for at least three years from the date the transfer deed is recorded. No lenders today are going to allow you to set up a buy and bail situation, so that option is out.Finally, regarding the second mortgage: You need to double check your BK papers, or with your attorney. The rules do state that if the balance of a mortgage is not secured, then in a bankruptcy it can be discharged as unsecured debt. Here's an example: At the time you filed your petition for relief, the home has a value of $100,000. The balance on the First is $101,253. In this example, there is no portion of the home value securing ANY of the 2nd, and the court should have discharged the 2nd and ordered the bank to release their lien. Another example is Home is worth $100,000, balance on First is $99,999.01 on the date of filing your petition. In this example, the 2nd remains secured because part of it secured by the home. I would advise you to check out if you have liability on the second, and then look to as close to a traditional sale as possible, even if it means coming up with the difference out of pocket to avoid a short sale situation. This would allow you to buy right away. Good Luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950ere

if your intentions is to LET THE OTHER HOUSE GO, and not sell it , I do not any part of your transaction.. thanks there are too many legal issues to deal with.. i am out ...

Again I'll say.. just becuase your BK says you're discharged from "All debt".. does not mean you are not liable for your mortgage. Clearly your attorney messed up, but the mortgage lenders should not have to pay the price for your attorney's mistake.. trust me.. YOU ARE RESPONSIBLE FOR THE MORTGAGE, AND IF YOU DONT PAY, THE LENDER WILL FORECLOSE, AND IT WILL AFFECT YOUR CREDIT.

LbennetHow is this fraud?Of the bk releases her of liability and she decides to walk away the can't come after her regardless of what purchases she makes, home, car, whatever she could win 10 million in the lottery and noone can come after her. How many times had Donald Trump home bankrupt?

I think you need a different lawyer... as Bert said, even if you didn't sign reaffirmation papers, the fact that you still live in the home 4 years later, and have continued to make payments on the first and 2nd, you have reaffirmed... you can sell the home, and you would not be responsible for any shortages because of the BK, but you will have a mark on your credit.. The lender holding your 2nd will not be doing anything illegal by listing a mortgage charge off on your credit report.. And the potential new lenders can read between the lines.. a mortgage charge off is viewed the same as a foreclosure, and the lender will apply the same waiting periods.. If you decide to walk away, then both the first and 2nd will have the right to list your mortgage debt as foreclosed... especially if the home actually forecloses.. And all the calls to the credit bureau and lenders will not change that.. Also, when Larry Bennett was referring to as your "Loan Fraud" judgment, was in response to you stating "if we get approved for a house & don't find one is 3 months, and need to reapply (we can reapply with no worries, right? Then after we close on the new house, let the old one go. (Once we move we won't be buying a new house for a while anyways)"... this is outright loan fraud.. Your intent is to let the home go back to the lender once you get a new mortgage.. To qualify for another home, you will have to tell the lender you are going to rent out the home, or keep it.. But how can you say that if you have posted on the internet that you will "let the old one go??" So I think Larry Bennett was responding to your earlier statement... If you don't like the home you're in and wish to purchase a new one, then you either need to sell the place your In or let it go back to the bank.. if you can sell it without having to short sell it, then you should be ok to purchase a new home.. if you have to short sell it, you will need to wait 3 years.. if you just let the home go back to the bank, then it's 3 years from the day the lender actually forecloses and transfers the title out of your name and into theirs.. 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. 480-287-5714 WilliamAcres.com

William,In regards to your explanation of why it is loan fraud. It's been a while since I purchased my house, but I don't remember there being anywhere on the application that asks you to explain what you are doing with your old house. Sure the lender might ask, but it's verbal, not really part of the application. The loan is approved or denied based on Debt to income and other financial facts. By your definition it's as if anyone who has been foreclosed is committing fraud. Here is a hypothetical situation, help me understand.. Lets say John B. owns a house, (let's say he is underwater $100K) then he purchases a second house. He tells the the loan officer he is going to turn his current house into an investment/rental property and make the new house a primary residence. John has a strong income and gets approved for the new mortgage without selling his old house. He finds a renter and everything is great for 6 months. Then the renter leaves without notice, john can't find a new tenant, 6 months go by and it's getting very difficult to make the payment on both houses. So John Decides to sacrifice the investment/rental property he tries to short sale, but can't find a buyer, soon the bank forcloses. Summary: the investment property (like all investments) involved risk, unfortunately john's investment succumbed to those risks, and just like any other investment that has gone belly up john stopped pumping money into it. Outcome: Does john get arrested for a bad business decision? Does John have an obligation to uproot his family, sell the new house and move back to the old house? What if the new house has gone underwater as well? John showed effort to make it work, but does that really matter? What if he never found that first tenant? What if he let it go after 4 months of it lying vacant while trying to find the first tenant? What if he let it go after 2 months? At what point does this become fraud and at what point is it not fraud? Or is all of it fraud? My understanding about fraud and specifically mortgage fraud when committed by an individual would involve some type of falsified data that would help the individual receive a new mortgage. Meaning, something like a false tax return, false pay stubs or falsified bank documents. I really don't see how letting go of a bad investment is fraud.I don't know about you, but I was taught from elementary school - college that purchasing a home was the best 'investment' you can ever make. But the reality is that for many Americans it has been a bad investment. I'd bet 50% of America would be better off if they walked away from their homes/mortgages. If people are capable of getting into a better investment before dumping the old (most probably are not) , I just don't see how that is fraud.

Hey J -- I love the research abilities that the internet gives us today -- and you sound very informed about your personal situation. That being said, you really need to speak to someone. -- You have way too many contingencies in order to get "good - solid" direction in this format. I would be happy to speak to you with the idea of getting you referred to good lender near you in Royal Oak - you mentioned several important pieces of information in you last email that are going to require someone to sit down with you and ALL of your documentation and develop a home buying strategy. If you would like to call me, so I can point you in the right direction, please do so = Mike Silkworth 517-489-2328 Union National Mortgage in East Lansing. You are at a point, that requires an expert to be giving you specific advice - quite frankly, you probably have a better general understanding of your situation than most licensed loan officers.

I understand what your attorney is saying, I don't think you have a clear understanding.. YOU STILL OWN THIE HOME... the title to the home is in your name, and if someone were to come into your home and fall, they could still sue you and your insurance would pay since the home is still in YOUR name.. The BK relieves you of any deficit in the event of a foreclosure, short sale or deed in lieu.. it did not relieve you of the entire debt since the debt is secured by the property, which is still in your name.. These are legal technicalities, but it's important you understand since you still believe that you're not obligated and you can continue to stay where you are forever.. Let's put it this way.. if all of a sudden your home was worth $100K MORE than what you owe, then you could sell the home, pay off the bank, and keep the $100K equity.. The bank has no claim to it.. They cannot attach anything to it, and they cannot just on a whim take the home away from you and evict you.. YOU STILL OWN IT.. Filing BK does not give you ownership rights without financial obligation.. There is still a lien against the home, and those funds have to be paid, or the home can be sold and the funds collected from the sale can go to pay off the attached loans.. In any situation, if you decide to "Let it go".. Then the current lenders will foreclose, and they will list "Foreclosure" on the credit report.. You cannot get it taken off, your attorney cannot get it taken off, and it will be a scar on your credit report.. You will not qualify for a new mortgage until 3 years has passed from the date the property is taken out of your name.. That's when the clock starts.. Not when you filed BK, not when the BK was discharged, not when you move out of the home.. it starts when the title to your home is no longer in your name.. Also, in your scenario about someone purchasing a home and renting out their current residence and for some reason they are unable to rent it out and let it go back.. This is not the same scenario you gave when you said you would "let it go".. After you've secured a new mortgage on a different home.. Again, it comes down to intent... and you have listed your intent to try this is an option.. That would be loan fraud.. If someone comes to a lender looking to purchase a new home and they are currently underwater in their current home, then the lender will be suspicious.. They will not approve a new loan unless the borrower has sufficient reserves to cover the negative, sufficient reserves to pay at least an additional 6 monthly payments after the down payment necessary for the new home purchase, and some lenders won't lend at all if you don't have equity in the vacating property.. They will ask for a "Letter of Explanation" and have you detail your reasons for leaving the current home, and why you wish to purchase a new home.. If they feel or suspect in any of your explanation that your taking advantage of the market in any way or if they feel you might be employing a "buy and bail".. They will deny you... keep in mind, I have said numerous times that you need to talk to your attorney.. I'm not an attorney, but I am a Professional Mortgage Loan officer, and I am very familiar with the inner workings of a mortgage, and I am telling you that If you say you are going to let a home go.. You will get denied... if you say it on the internet (which you have already), but lie on a letter of explanation, then that's loan fraud.. You cannot ask the bank for a new mortgage on a different home with the intent to let a different property go.. That's loan fraud.. In your previous scenario, the original intent was to rent out the other property, so it's not the same comparison... Plainly put, so you have a CLEAR understanding of where you're at.. coming from a Professional Mortgage Loan officer, unless you have sufficient cash reserves, you cannot purchase a new home while still being on the title to the home you're in now.. You will either have to do a cash for keys, short sale, foreclosure, or traditional sale (unlikely since your $100K underwater), but somehow, you need to get your name off the title to this home.. Then depending on how you liquidated the home will determine if there is a waiting period... anything but a traditional sale will require you waiting at least 2 years, 3 years more likely, before you can purchase again.. if you question anything I'm saying here, then contact a local mortgage broker, and apply with them.. let them look at your COMPLETE profile, and you will see how the information I have provided you free of charge is accurate.. (do not use the local big bank.. they will just turn you down without any explanation, since you're dealing with an application taker, not a professional loan officer)

J - have you sat down with a lender yet? You really need to. Your situation is very unique and general advise from a forum will no longer benefit you. I wish you the absolute best in your search for help.

Wow you really have a unique situation. I know you are trying to be honest and do the right thing. It is a shame that we have to do any of this b/c the banks just close the doors on all of us. No one seems to care about us or our families and no one wants to help us. We had Citi mortgage and tried forever to get a modification, which was a joke. Lost our paperwork twice took our money and held it in a modification program and did not apply to our mortgage but yet added interest and penalties to our mortgate. It was a joke!!! We did everything we could to satify our mortgage and our credit cards while we were going thru this awful situation and no one cared. Banks said, pay your house or it is going into foreclosure. I asked if I could even put a few mortgage payments to the end of the mortgage until we got on our feet and they said, Oh yeah about that, it is a Fannny Mae, Freddy Mac rule, you can't do that. I cried and cried and ended up filing bankruptcy and losing everything we worked for including the 150 thousand bucks we put down on the house. It was a sad day and either of us wanted a bankruptcy and we sure didn't want to lose our house but they forced us into it. They took it back and sold it for more money than I owed but they wouldn't sell it back to me for what I owed on it. Homes have depreciated and if the banks or Freddy or Fanny would just say, gee we feel bad we will sell you the house back for what it is worth, then we would all be able to keep our homes and keep our families in tact, but they are to afraid we may make a few hundred bucks on it in time, if we sell it.. I mean we can't even buy a house off a relative who has to sell it because we may sell it back to them. I mean God forbid someone loves a house and wants to keep it. It could all be fixed and none of us would be where we are at ,and you wouldn't either, or even worried about doing whats right, if someone would help us and care about us. We all try to do what is right but oh man if we did something wrong, u are all correct we would be in fraud for sure.. I think most banks are in fraud cause they rob us of our homes because they won't bend. I am in a bad situation myself and have had to work hard for three years to get my credit up and was told 3 years to buy after discharge date now I am faced with 3 yrs after Sheriff sale. The system has failed us all, well at least all of us who struggled and lost our jobs and tried so hard to get it right and were forced out. I am sorry for all of us. Good luck with what you are doing. Sounds like you have really done your homework and talked to a good attorney in MI and you got it all right..but boy it sures make us all want to not do the right thing. Take Care

Do not stop making payments on your current house, That will eliminate you from consideration for new financing. In your situation you may qualify right now. It will depend on the details of how the mortgage reported and the current and past status of your payments. Once I have an idea of the whole picture, I can either get you qualified now, or advise you on a plan to get qualified as soon as possible. I'm happy to help with the financing or just give you advice. If you need more information, or a competing rate quote call, email or use my live support button to discuss or get in touch with me. Web Address for live chat or quote is: http://www.loansfromrob.com/quote/ Email is robertlh66@verizon.net and direct phone is 240-752-7549. Good Luck -- Rob Hanson

I want to respond in a different way from many fine answers and maybe limited answers to the issue of allowing a home to go to foreclosure vs. short sale, and the aspects pertinent to a discharged personal bankruptcy.A short sale always sounds better than a foreclosure.One always needs to consider the record one has in making mortgage payments on time when deciding to short sell the house because their payments had become an economic burden. People have had short sales and been able to buy a house right away because of keeping up payments!Unfortunately, in the past, many people received poor advice to start missing payments so theywould better qualify for a mortgage modification from their lender. Yet, had they gotten better advice, they might have chosen to keep up payments right up to the short sale of their house.

After you experience bankruptcy, it might seem like you will never be able to qualify for a home purchase again. You may have low credit scores, a drained bank account and a low self-esteem. However, even though you may have challenges, buying a home after bankruptcy is still possible.Lenders don't only look at your credit score after bankruptcy. They also look at your income source, your ability to make a down payment and your newly established credit score. You do have to undergo a waiting period after you experience a bankruptcy that ranges anywhere from 1-4 years depending on the type of loan you had and what the circumstances were. It's a good idea to rent a home during that time and focus on building up your credit score as much as possible.The best ways to build up your credit after a bankruptcy are to apply for a new credit card, buy things with it, and make payments on time. Once your credit score is back up to par, you need to make sure that you have a big enough down payment and that you have a solid two years of steady employment. Otherwise, you will have a harder chance qualifying for a loan.When you are solid with all of the above mentioned factors, it's time for you to find a lender who can help you out. It's always a good idea to mention that you had a bankruptcy in the past before he or she runs your credit report. This will explain any blotches on your credit report and will help the lender feel like he or she can trust you in all circumstances. You might have to visit a few lenders before you find one who will help you, but the point is that buying a home after bankruptcy is entirely possible if you work hard and are patient - it's well worth it.

no do not stop paying.

Buying a home after a BK, you will need to wait for the waiting period for Conventional or FHA loans. Then save your money and make sure all payments to credit are on time.

If you didnt reaffirm it why are you making payments? Depending if you have a down payment you can buy one day out of BK. Its a wierd situation I would need to see the BK papers and credit to see where we stand and set up a solution