[Caesar1]

We were forced to file Chapter 7 in August of 2005, it was fianl Dec 1 2005. United Equitable said they never received the BK paper work and turned us in as a foreclosure on a $12k lot that remained unimproved. We paid $4k over 3 years before the chapter 7. We are trying to buy a new home using FHA, we have satisfied all the under writers questions but they can't get past the 'foreclosure' on this lot. The origional GFE was 2 1/4% down now they want 10%. How do I get this off my credit reports? They are clearly listed in the BK and the loan was NOT reaffirmed.

[centex]

What has your BK atty told you? That would be the first place to go...

[Enigma]

Ditto as to what Centex wrote and did foreclosure proceedings start prior to the filing of your BK?

[Caesar1]

No, foreclosure was a by-product of the chapter 7, we were 30 days past due at that point. I left a message with my attorney Friday so I'm waiting on a call back.

[Qtip]

Originally Posted by Caesar1

No, foreclosure was a by-product of the chapter 7, we were 30 days past due at that point. I left a message with my attorney Friday so I'm waiting on a call back.

I know the questions asked do not answer your original question, the reason the questions are asked is for us to get as much information as possible in order to give you sound advice.

We could have told you to dispute the foreclosure but I imagine you have tried that and it did not work. Time is probably of the essence for you but this is one that you should fix one time correctly so that you do not have to deal with this down the road.

[Enigma]

You write you were 30 thirty days past due. Prior to the filing of the bankruptcy, had the lender begun foreclosure proceedings?

[Caesar1]

No, no foreclosure proceedings were started. They actually stated they were never notofied of the BK and therefore went the route of foreclosure. I tried to get that in writing but they said absolutely NOT.

[Loan Doctor]

I hate to give you bad news, but here is the deal. To a certain extent Foreclosures have nothing to do with a Bankruptcy. If there is a foreclosure that ends up with money owed to the bank by you, the BK can absolve that if the issue is addressed in the BK. Normally however, the BK happens, then the FC. Investors are more forgiving of BK's than FC's.

Lately FC's are becoming more of a problem in that the "start date" for the 3 year clock to start ticking has always been the date that the property sold to a new borrower. In the past that has been over looked, but investors have found out that people that have had a FC are more likely to have trouble paying their new mortgage, so they are being very careful now.

Conforming loans now have a 5 year period, instead of the 3 year.

A note to others that may be reading this post. Short sales, where the lender/investor is willing to take less than what is owed, are consided by most investors to be a Foreclosure. Sort of a bummer.

Charles

[Enigma]

If the FC proceedings were begun after the BK case was filed, then that is a violation of the automatic stay.

If a FC proceeding was commenced you should have been notified by CMRRR or Registered Mail.

Was the creditor included on your Schedule A? Were they included on the Creditor Mailing matrix?

[jlynn]

Originally Posted by Loan Doctor

I hate to give you bad news, but here is the deal. To a certain extent Foreclosures have nothing to do with a Bankruptcy.

The timing has everything to do with how the mortgage is reported to the bureaus. In this case, from what the OP has told us, the line should report as "Included in BK, 30 days past due". There should be no notation of a foreclosure proceeding on the reports - whether that was an ultimate result of or not.

[rheamae05]

Settle all your accounts or consult to the finance expert so everything will run smoothly. I knew a friend who have not settled his reverse mortgage, he just ignored it and the result is really bad..