Name on loan but not deed why can't I buy a new home?
Chicago, IL |
If I was listed on a mortgage loan and not the deed, and the property is in the process of foreclosure why after my bankruptcy is the property still showing me as the owner? And why am I unable to purchase a new home now?
The answer is simple: Your name is on the mortgage which makes you responsible for the loan, whether or not your name is on the deed and despite your BK which may or may not have discharged your debt.. You can purchase a new home if a lender will approve you for a mortgage.
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Typically FHA and Fannie Mae will underwrite a new home loan for you 2 years after the bankruptcy discharge or 4 years after the completion of the foreclosure. However they may be an error on your credit report that can be fixed to allow you to proceed now. You should talk to a lawyer familiar with bankruptcy and the fair credit reporting act such as me. Additionally, if you did not reaffirm the debt and the case was a no asset chapter 7, I am sure the note (your obligation to pay) has been discharged. Additionally, if the lender is still reporting past due information to the credit bureau, they may be liable for violation of the discharge injunction.