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TheBigGuy
392 Posts |
 Posted - 05/16/2008 : 08:50:09 AM
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OK, Borrower has a Lis Pendens filed. Files BK, ends up surrendering the house in the BK.
Does he have to wait 2 years or 3 years to get FHA Financing again?
Its 2 years for a BK and 3 for a foreclosure. But do they count that as a foreclosure when it is surrendered in a BK??????
Of course by that time the guidleines could be completely different anyway, but I am trying to help a friend out |
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katroberts
1208 Posts |
Posted - 05/16/2008 : 08:57:00 AM
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I would say "Yes", it's counted as a foreclosure because, even though the property is surrendered in the bankruptcy, the bank has to foreclose, either after relief from stay or after dischrage, to take the property back. In BK terms (Latin), relief in favor of the foreclosing bank is "in rem" relief but not "in personam" relief, which means that the bank can get relief from stay to take back the property (in rem), but the bank cannot attempt collection of any deficiency against the person (in personam) post-BK discharge.
I really think that a surrender in BK and a resulting foreclosure would qualify as a foreclosure and the existing 3-year rule would come into play. |
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rtrefflich
3414 Posts |
Posted - 05/16/2008 : 08:58:58 AM
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| It is a foreclosure |
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kalee3415
193 Posts |
Posted - 05/16/2008 : 09:13:50 AM
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Yes the 3 year rule is still their. Doesn't matter how it happened - in a BK, deed in lieu of foreclosure, it is all counted the same since they did not meet their mortgage obligation.
Kind of reminds me of a lady a while back. She calls looking for a mortgage. I ask her all the normal questions: Ever had a bk? Foreclosure? To which she answers "no". Says she pays everything on time. I pull her credit and she has a foreclosure reporting as of the month prior! I tell her what I have found on her credit and she is istantly pissed off. She said, "that is complete bullsh**, they didn't foreclose on me I GAVE them that damn house back." She was completely mad since she had been so kind to sign the deed over. I never could get her to understand I could not help her because she had failed to show her willingness to pay a mortgage. She just kept ranting about wanting to sue the bank for showing it as a foreclosure and that was what was keeping her from being able to buy a new home. My favorite part was she was wanting to buy a home that would have a much higher mortgage than the one she couldn't seem to pay. Boy, sometimes you just get some real winners!
quote:
Originally posted by TheBigGuy
OK, Borrower has a Lis Pendens filed. Files BK, ends up surrendering the house in the BK.
Does he have to wait 2 years or 3 years to get FHA Financing again?
Its 2 years for a BK and 3 for a foreclosure. But do they count that as a foreclosure when it is surrendered in a BK??????
Of course by that time the guidleines could be completely different anyway, but I am trying to help a friend out
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TheBigGuy
392 Posts |
Posted - 05/16/2008 : 09:15:19 AM
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| Thats what I figured....Follow up question.....3 years from what date? Final Judgement? Auction? |
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