How Long After A Foreclosure Or Short Sale Can You Get A Harp Refinance?

[Erik Sandstrom]

This has been a hot topic around my office lately so I thought I would help educate anyone that is experiencing problems with previous foreclosures, short sales, bankruptcy...etc.

The seasoning periods for HARP Refinances follow the same as conventional loans.

Foreclosure - 7 years from deed transfer date
Short Sale - 4 years
Deed-in-Lieu - 4 years
Bankruptcy Chapter 7 or 11 - 4 years
Bankruptcy Chapter 13 - 2 years from discharge date or 4 years from dismissal date

Hopefully this helps answer any questions in regards to how long it will take before you can obtain financing through this program. If you have any questions please don't hesitate to ask.

 

[Elsker-meg]

I am totally frustrated! I've filed personal bankruptcy as has my spouse. We had been told that after doing so we were not affirmed on the mortgage (but have not paid the mortgage in 1.5 yrs nor have been foreclosed on). Our mortgage was bought out by a company called Caliber. We've had no contact with them until a recent email saying thank you for your payment. This mortgage is $150K under water. I plan on retiring in 8 yrs and do not want a huge mortgage hanging over me at that time. (1) what is the best way to handle this and (2) should we continue to pay the school/property taxes? I had been informed that failure to do so comes with penalties. Please advise. thanks.

 

[Erik Sandstrom]

Hi Elsker,
Sorry about your frustrations, hopefully I can shed some light on what you're dealing with. You mentioned that you didn't reaffirm the property in the bankruptcy which is what should have been done. That means that you included the home in bankruptcy and have bankruptcy protection. That does not however mean that if you stop making the mortgage payments it prevents the lender from ever foreclosing on the home.

I'm also confused when you say they said "Thank you for making your payment" - are you making the payment?

You are not liable at this point for the mortgage if you included it in bankruptcy. As far as the property taxes I would say speak with your bankruptcy attorney to get the correct information. I'm not an attorney and would hate to give you information that isn't accurate.

 

[Elsker-meg]

Afternoon/Morning Erik, I was advised not to include my home in the bankruptcy by the lawyer because we were trying to save it at that time. When I inquired about it, he stated not to because if you want to leave you do not have to worry about owing the bank any monies (heck i hope he wasn't wrong about that too). To answer the confused question no we haven't made any payments as of this time. We just cannot make the payment of $2558.00 any longer and we have produced paperwork to show this. Thanks for your assistance. Am getting ill over this...

 

[Erik Sandstrom]

Not a problem, anything I can do to help I'm more than willing. I think it was best that you included your home in bankruptcy. It provides a huge amount of protection in case you are to leave the property.

 

[Elsker-meg]

Thanks again. I hope one day to get this all cleaned up and not come out too badly in the long run...

 

[Erik Sandstrom]

Not a problem, if there's anything I can do to help please let me know.