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Any success disputing foreclosure?


Nate_507
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My house was foreclosed about 2.5 years ago. Things have improved and I am ready to be a home owner again. Has anyone had any success disputing a foreclosure? My fear is that if I dispute they may try to come after me for the difference of the loan and house acution price.

I do notice that the loan number is not the same as the one I have on my paperwork, I was planning on disputing but wanted a little more info.

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CA is a non-recourse state...meaning that if your purchase money mortgage foreclosed and the bank sold at a loss, the bank cannot come after you for the difference.

If you refinanced or had investment/vacation property, then they can come after you for any deficiency.

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I do notice that the loan number is not the same as the one I have on my paperwork, I was planning on disputing but wanted a little more info.

An analogy of this is your on a sinking life boat, your looking to patch up the holes. What your thinking of doing is wasted effort!! You have one document - the bank has volumes of documents showing you defaulted and they foreclosed. What most banks do now days, if they see a loan going late, it immediately gets sold off the a subsidiary bank, just to keep their books clean for investors.

....am ready to be a home owner again. ... fear is that if I dispute they may try to come after me for the difference of the loan and house auction price..

Before thinking about getting a new home, the first thing you need to do is clean up your past! Start by fixing your credit first!!

You will be charged more with higher interest rates, even above the levels other borrowers with similar credit scores would receive because of the foreclosure.

But future underwriters will scrutinize their records very closely, and if they find no precipitating factors leading to the defaults -- no job loss, no health issues --your goal with a repaired credit score to overshadow the black mark of the foreclosure.

It your foreclosure happen due to a Walkaway - add an additional 5 to 8 years on to whats below, before you can qualify for a new mortgage..:oops:.....

2011 FHA Waiting Guidelines

Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy.

You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy

Foreclosure - You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.

Short Sale / Notice of Default – You may apply for a FHA insured loan THREE (3) years after the sale date of your foreclosure. FHA treats a short sale the same as a Foreclosure for now.

Credit must be re-established with a 640 minimum credit score

2011 VA Waiting Guidelines

Bankruptcy - You may apply for a VA guaranteed loan TWO (2) years after a Bankruptcy

Foreclosure - You may apply for a VA guaranteed loan TWO (2) years after a foreclosure

Short Sale - You may apply for a VA guaranteed loan TWO (2) after a short sale, unless it was a VA loan then restrictions apply

Credit must be re-established with a minimum 620 credit score

2011 Conventional Waiting Guidelines (Fannie Mae)

Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.

Foreclosure - You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,

Short Sale / Notice of Default – Currently treated the same as a foreclosure with a waiting time of SEVEN (7) years before you can buy again using a Fannie Mae conventional home loan.

Credit must be re-established with a minimum 660 credit score.

Fannie Mae has reduced waiting periods in cases of extenuating circumstances – The death of a primary wage earner seems to be the only one I have been able to identify up to this point.

My fear is that if I dispute they may try to come after me for the difference of the loan and house auction price..

- The lender can come after you for the difference. I was just speaking to someone yesterday in a similar situation - who went through foreclosure 7 year before. In the summons he received, his old bank was suing him, I told him his options:

- There can be a settlement for less. The $36,500 can be settled for around $11,000 now. If Old Republic takes their suite to court, additional legal fees are adding, makes it harder to settle at a lower amount in the future.

- You have the option of filing bankruptcy. Your income will determine whether doing a Chap 13 where your making payments to a trustee for up to 5 years. This is listed on your credit for 7 years. A Chap 7 to a total liquidation of your debts, this says on your credit for ten years. Noting your credit now is pretty much tanked due the foreclosure.

- You also have the option of doing nothing. Let time takes it course and hoping for the best. Realistically Old Republic can file for a civil judgement, then have the local sheriff go to your house and confiscate items to auction off and satisfy you debt. Once there is a civil judgment - your checking and savings account can be frozen.....

Imagine five years from now in a new home, getting a knock on the door. "It's the Police!!!!!" Showing you a notice "all your property is being confiscated to be sold at a Sheriff auction". This really happens - look in the Sunday classified section of your newspaper. Case and point - the longer you wait to do something, the harder and more costlier it becomes to resolve the problem.

Bottom line - my advice is to forget about buying a home anytime in the near future. Even after three years min is an FHA loan you could try qualifying for. With the new credit requirements, you would by denied...

I don't know you - just telling the truth of your situation. I am very passionate about what I do. If you want change - start by learning all you can about credit, change your life and spending habits, set new rules and personal goals and live by them!!!......:)++

..

Edited by 2ndTimeAround
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  • 2 weeks later...

Not sure what you would want to accomplish in disputing a foreclosure.

If the goal would be to get it off your credit report, it wouldn't matter even if you were successful. The lender will find out about the foreclosure when they do the title search. The info will come up under your name.

Yes, the MIP for FHA is now beyond outrageous.

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