Posted on: 03rd Apr, 2011 07:50 pm
Ok, I filed CH7 and have met the guidelines to apply for a FHA loan however I am stuck with my current home I live in now. Basically I kept the home "Pay as you Stay" and did not reaffirm the property during BK. Per my BK Attny I have no financial obligation to the property, yet I still live and pay monthly.
I am wanting to move closer to work but will obviously take a HUGE hit with the current market. With the appraisals in my area I would be upside down almost $100K.
Now here is my question. What if I put the home on the market and say I accept an offer $100K less than what I owe. I was told by my BK Attny and a realtor that the mortgager could not come after me for the upside down $100K because the home was included in BK.
Would I still be able to get an FHA loan for another property knowing I sold the home less than what I owe? Or will it come up in closing that I still have a balance on the property that was sold.
I dont even want to think of short sales as the timeclock begins ticking again for a FHA loan if I go that route.
Thoughts?
I am wanting to move closer to work but will obviously take a HUGE hit with the current market. With the appraisals in my area I would be upside down almost $100K.
Now here is my question. What if I put the home on the market and say I accept an offer $100K less than what I owe. I was told by my BK Attny and a realtor that the mortgager could not come after me for the upside down $100K because the home was included in BK.
Would I still be able to get an FHA loan for another property knowing I sold the home less than what I owe? Or will it come up in closing that I still have a balance on the property that was sold.
I dont even want to think of short sales as the timeclock begins ticking again for a FHA loan if I go that route.
Thoughts?
Hi TReisdorf,
You can surrender the property to your lender and he will sell off the property but won't come after you in order to recover the balance amount. After a foreclosure, it will be difficult for you to get a mortgage immediately to buy a new property.
Thanks,
Jerry
You can surrender the property to your lender and he will sell off the property but won't come after you in order to recover the balance amount. After a foreclosure, it will be difficult for you to get a mortgage immediately to buy a new property.
Thanks,
Jerry
Thank you Jerry. But what if I didnt surrender the home. What if I hired a realtor to put the home on the market, received a Purchase Agreement, and accepted it. Would that get my name off the title and allow me to apply for a FHA fully knowing the home is no longer in my name.
The overall goal is that FHA or the new lender doesnt come after me saying they will not close on my "new home" because I went aghead and sold my "old home" for less than what the owed amount is.
If I can sell it knowing I will take a loss is fine with me. But I am pessimistic the new lender or FHA might question me why I still owe money and/or sold it for a loss.
Thank again for your input - MUCH APPRECIATIVE!!
If I can sell it knowing I will take a loss is fine with me. But I am pessimistic the new lender or FHA might question me why I still owe money and/or sold it for a loss.
Thank again for your input - MUCH APPRECIATIVE!!
Hi TReisdorf!
Welcome to forums!
You can list the home in the market by contacting a realtor and remove your name from the property title. When the FHA checks your credit report, the property won't be mentioned in your credit report. You won't owe any money as the mortgage was discharged in your bankruptcy filing.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can list the home in the market by contacting a realtor and remove your name from the property title. When the FHA checks your credit report, the property won't be mentioned in your credit report. You won't owe any money as the mortgage was discharged in your bankruptcy filing.
Feel free to ask if you've further queries.
Sussane
Sussane, you are correct as it seems my mortgager has not listed my property since 2008 (the day I was discharged).
I just want to make sure if I list the home, sell it for a loss I CAN STILL APPLY for a FHA new purchase and not have this bite me in the (you know what).
Thanks
I just want to make sure if I list the home, sell it for a loss I CAN STILL APPLY for a FHA new purchase and not have this bite me in the (you know what).
Thanks
Eh, disregard - I talked with a lender and basically it is not me who decides to accept an offer under $100K - it would be my lender. So I guess the ONLY option i have is this:
Ask for a loan mod (which I did and got denied). Submit a letter to the company reviewing the loan mod once again. If that fails I tell them welcome to home owndership and forecloser because my home fell thru because nobody was willing to work with me.
I rent for 3yrs and get a FHA later. And the best thing is I save $$$ for 1yr because it takes anywhere up to 6 months for foreclosures and 6 months redemption period.
Ask for a loan mod (which I did and got denied). Submit a letter to the company reviewing the loan mod once again. If that fails I tell them welcome to home owndership and forecloser because my home fell thru because nobody was willing to work with me.
I rent for 3yrs and get a FHA later. And the best thing is I save $$$ for 1yr because it takes anywhere up to 6 months for foreclosures and 6 months redemption period.