QUESTION
Do we have to wait another 2 years for an FHA loan and does reopening the case make it another 10 years on credit report?
Asked on Jan 14th, 2014 on Bankruptcy - Colorado
More details to this question:
My husband and I filed chapter 7 bankruptcy in 2012. I kept my house and now I am trying to put it up for sale but when the paperwork went to the title department, it showed that only 1/2 interest of my house was included in the bankruptcy. I inherited 1/2 interest when my grandmother passed away and my mother received the other 1/2 interest. I received the whole house when my mother died in 2003. The title department told me that we cannot move forward in selling the house until we have our attorney reopen the bankruptcy. What will this do to our credit now? Can we still purchase another house when mine sells?
4 ANSWERS
The original date of filing will govern. Re-opening your prior Chapter 7 case will not trigger any new time lines.
Answered on Jan 23rd, 2014 at 5:19 PM
That problem should have been addressed when you filed the bankruptcy. You will have to see your attorney as this appears to be a mistake. You inherited the house 10 years before Bankruptcy, and this other half is part of your estate. How the credit bureaus may report the matter likely depends on how the attorney and court handle the matter, You can insert a comment into your credit report if the credit bureaus report the matter as a bankruptcy matter. The lenders will apply their criteria based upon how the matter is treated on the credit reports.
Answered on Jan 16th, 2014 at 8:18 PM
I really don't see why you need to open your bankruptcy case again. Bankruptcy is not determinative regarding title or ownership. You need to hire a good real estate attorney who can get title into your name only. Sometimes this can be done without a court action. Get some advice from a real estate attorney.
Answered on Jan 16th, 2014 at 7:57 PM
Deborah F. Bowinski
What you say the title co any is telling you makes no sense to me at all. You should probably consult with a real estate attorney. Was there a probate of your mother's estate? That may be the problem. There ate proceedings to remove your mother's name from the deed and put it in your name alone maybe that's what the problem is? It is hard to know for sure, but it does not sound right to me (without more information) that it is related to your bankruptcy. Unless it was a non-disclosed asset that your trustee would have an interest in.
Answered on Jan 16th, 2014 at 7:54 PM