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bruce morris
10 months ago
I gave my house back to the bank with a deed in lieu of foreclosure. the bank transferred title in 2011 the first time I paid them money to get it back. The bank never applied my payment to the principle , then came after me again in 2013. I was never released from foreclosure (jail) my attorney recommended I give up the house. I had lived in it for a year while I was in a chapter 13 then abandoned the ch 13 and filed a chapter 7 after I gave up the house. I was discharged from he chapter 7 in April 2015.
 
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Joe Wallace
10 months ago
On Deed-In-Lieu, HUD 4000.1 states, "A Borrower is generally not eligible for a new FHA-insured Mortgage if the Borrower had a foreclosure or a DIL of foreclosure in the three-year period prior to the date of case number assignment.

This three-year period begins on the date of the DIL or the date that the Borrower transferred ownership of the Property to the foreclosing Entity/designee.

Exceptions
The Mortgagee may grant an exception to the three-year requirement if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the Borrower, such as a serious illness or death of a wage earner, and the Borrower has re-established good credit since the foreclosure."

For Chapter 7, "A Chapter 7 bankruptcy (liquidation) does not disqualify a Borrower from obtaining an FHA-insured Mortgage if, at the time of case number assignment, at least two years have elapsed since the date of the bankruptcy discharge. During this time, the Borrower must have:

- re-established good credit; or
-chosen not to incur new credit obligations."

Furthermore, "An elapsed period of less than two years, but not less than 12 months, may be acceptable, if the Borrower:

-can show that the bankruptcy was caused by extenuating circumstances beyond the Borrower’s control; and
-has since exhibited a documented ability to manage their financial affairs in a responsible manner."

Lender standards and state law may also apply.
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