QUESTION
Can a lender decide what date to use after bankruptcy & foreclosure?
Asked on Nov 02nd, 2012 on Bankruptcy - South Carolina
More details to this question:
At the time, I am writing this we are 4 hours away from when we were supposed to close. We had a BK/foreclosure 4 years ago. Turns out the lender wants to use the sheriff’s sale date instead of the BK discharge date. Sadly that would mean we can't close until Jan. I have heard that it’s all up to the lender as to which date to use for FHA guidelines, but since the property was included in the foreclosure (we left the property the same month the BK was discharged) how can they legally use the other date? I'm now almost wishing we had stayed and lived there for the 18 months it took - for free! I’m being penalized for not squatting.
1 ANSWER
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Lending guidelines vary from lender to lender; most lenders, however, use the date of discharge from the bankruptcy and require a minimum 2 year period before loaning mortgage funds to a former bankrupt
Answered on Nov 05th, 2012 at 2:01 PM