Here is some background on our situation:
We filed Chapter 7 bankruptcy and it was discharged in October 2009. We reaffirmed on our Chase mortgage...or so we thought! A year later we ran our credit for a car loan and it shows our Chase mortgage was discharged in the bankruptcy. After several calls to Chase, our attorney and the bankruptcy Trustee we never got a real answer...they all blamed each other and our case had been closed. We have continued to make our mortgage payments and haven't had any late payments. According to Chase we can walk away from it right now and they can't come after us for any money, but we don't want to do that because we know we would have to wait 3 years after they foreclose on the home to get another mortgage and we have already waited for 3 years after bankruptcy.
Our credit report shows the mortgage discharged and the courthouse shows the home still deeded in my husband and my name. We are trying to sell our home, and have been offered a good offer to sell on a land contract, but trying to get a new mortgage seems to be the problem.
We have talked to 3 local lenders and can't get any answers...they all tell us they have never heard of a situation like this and tell us to see them once we sell the home. We have done our research and know we can have 2 mortgages. We are over 3 years out since the bankruptcy discharge, both have a credit score around 650 and our debt to income ratio is around 38% and that includes our current mortgage and a new mortgage.
My question is...What is preventing us from getting a FHA loan while still having a home in our name???
We aren't looking to do a buy and bail...we want to sell it on contract or rent it out if the offer would fall thru. What lenders will help us? Our small town Indiana lenders don't have a clue when we explain our situation so it's just easier to deny us until we sell our home outright.
Any help would be GREATLY appreciated...it is so draining trying to find the answers, it's been an almost daily discussion for the past 3 months and aren't any closer!