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ScottyMacESQ
ScottyMacESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 16219
Experience:  General Practice Attorney
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Two years ago I filed bankruptcy and included in that bankruptcy

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Two years ago I filed bankruptcy and included in that bankruptcy was my current home. After the bankruptcy was discharged I now would like to buy a house. I have maintained my payments on my mortgage, although I was not obligated to. Now, I am getting conflicting stories that I can and can't get a home mortgage because I have not gone through a foreclosure process? I am being told that I need to foreclose on my house in order to move forward because once I foreclose the 3-year time frame mortgage holders use after a foreclosure has not run. Is there any way to back-date the foreclosure to my bankruptcy date? Do I have to foreclose? Can't I just walk away after the purchase of another home? I'm lost.

ScottyMacESQ :

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please select the "accept" button. If you have already clicked "accept", or if you will in the future, please let me know so I can track these for my own reports and customer satisfaction stats. Thank you, XXXXX XXXXX good luck to you!

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ScottyMacESQ :

When was bankruptcy discharged?

Customer: replied 5 years ago.
June 2009 the bankruptcy was discharged. I continued to pay the house payment on the advice of my attorney that continuing payment would possibly help me qualify for another home mortgage in the future, so I continued to pay for over the past 2 years. Now I am being told that I have to foreclose to even start the 2-3-5 year waiting period for another mortgage.
FHA regulations are pretty vague, and brokers can have a variety of opinions of them (a lot like lawyers). That being said, you don't have to have the home foreclosed. But if you go through the foreclosure process, it's three years from the date of the trustee's sale. That is, there is a specific date that the foreclosure happens on, for FHA purposes, and that's the date of the trustee's sale. The three years starts running at that point. And it can't be backdated. Now this can be reduced if there are "extenuating circumstances", such as a good credit rating, etc... But you'd have to wait 3 years from the actual sale date to do so. Best bet would be to either (a) sell you home, not foreclosure, or (b) walk away after you buy a new one.

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please select the "accept" button. If you have already clicked "accept", or if you will in the future, please let me know so I can track these for my own reports and customer satisfaction stats. Thank you, XXXXX XXXXX good luck to you!
Customer: replied 5 years ago.
Is it legal to purchase another home while knowing that you are going to walk away from a house that is under water? No foreclosure has happened because I am current on my payments and have waited the 2 years from the BK. I have contemplated walking away from the house after the purchase of another, but felt like that was being a bit dishonest in the long run. So, again, is this legal to do?
It's legal (you should try to sell it in the meantime). Whether it's ethical or not, that's another matter, and up to your conscience. You should certainly attempt to sell, so this won't even be an issue. But it is legal.
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