Posted on: 27th Oct, 2009 08:18 am
filed ch. 7 bk july 2008; discharged oct 2008; i included my home in the bk.
i moved out of the home july 2008 and had stopped paying the mortgage in may 2008, because i could no longer afford payments (i had two mortgages). i moved into a rental home while my credit was still decent.
in may 2009, fannie mae posts on my area's assessment site they now own the home. i've recently pulled up my credit report and scores.
equifax is showing one of the mortgages as included in bk chapt 7. it does not list the second mortgage. transunion is reporting both mortgages as "included in bk". scores are showing 650 and 635.
i would like to know if my mortgages are reporting as included in bk, will it eventually report as a foreclosure? also, would anyone have an idea of when i will be able to purchase an "affordable" home (i wouldn't wish this situation on anyone). i look forward to responses and thank you.
i moved out of the home july 2008 and had stopped paying the mortgage in may 2008, because i could no longer afford payments (i had two mortgages). i moved into a rental home while my credit was still decent.
in may 2009, fannie mae posts on my area's assessment site they now own the home. i've recently pulled up my credit report and scores.
equifax is showing one of the mortgages as included in bk chapt 7. it does not list the second mortgage. transunion is reporting both mortgages as "included in bk". scores are showing 650 and 635.
i would like to know if my mortgages are reporting as included in bk, will it eventually report as a foreclosure? also, would anyone have an idea of when i will be able to purchase an "affordable" home (i wouldn't wish this situation on anyone). i look forward to responses and thank you.
Chapter 7 will be anywhere between 2-4 years -after discharge-depending on reason for bankruptcy. Extenuating circumstance will get you 2, financial mismanagement will be 4 (and don't be surprised if those increase) This may vary from lender to lender but I find mostly we are all getting quite conservative. Improving your credit scores won't hurt either you should shoot for 680+ and your credit needs to be spotless after that bankruptcy. The way underwriters see it you got a new start so there should be no blemishes on the credit report. Honestly, not sure if it will really matter if credit report says bankruptcy or foreclosure neither one is good and both seem to have similar guidelines. Your focus needs to be on re-establishing your credit history and letting nothing fall behind....stashing some money in savings can't hurt either it may keep you from getting into a similar situation later. Good luck.
Thank you for your response. Very good advice. I have several cc cards that I'm using to build up my credit. They have low utilization and get paid on every month, on time, always more than what is owed. Savings account is building as well. And I guess, having patience is the other key.
FHA-insured Mortgage and VA Guranteed Home Loan programs require 24 months of no lates on anything, since the discharge, in order for you to use their program to purchase a home. It can be reduced to 12 months if the bankruptcy happened because of an isolated event that was beyond your control, and its been resolved, and highly unlikely to ever happen again, and you have to be able to fully document it. Qualifying examples are Job Loss or Medical.
