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My foreclosure is not showing on my credit report. Can we purchase a house without waiting the 3years?

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dross1958

Sure. I don't know what waiting has to do with anything, but if you checked your 3 credit reports and the foreclosure is not showing on any of them, now is a good time to do it,

What you should know however and this is something that most people don't seem to realize is ======

Once the bank forecloses on your home, they get a default judgement from the court for the difference between the amount you legally owe on the original mortgage note and the amount that they sell the home for.

If it is a local bank, they will come after you for that judgement sooner rather than later. If it is a national company, they are waiting until the economy improves but they will come after you for the difference.

The point of this is, they will put a lien on the new house you are buying ----- UNLESS you title it differently than the mortgage docs of the foreclosed property.

Otherwise you may be surprised 7 or so years from now, when you come home and find your door has a sheriffs notice taped over it .

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We live in Arizona and I believe it is one of few states that the bank cannot come affer you with a default judgement. Also the mortgage company that financed the house has gone bankrupt and has 2 states Attorney Generals offices filing complaints against them. And numerous consumer complaints for predatory lending practices. AKA they were crooks.


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dross1958
Even if the company that originally financed the house is out of business, I am 100 certain that their assets or notes were taken over by another company - so someone has it somewhere. They were all crooks but their mortgages themselves were still taken over by either a gov't entity or another bank - it never just vanishes.

Do some research, www.nolo.com and look up foreclosures in AZ to be certain if it is a no recourse state before you take the plunge and are unpleasantly surprised.

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Looked it up and Arizona is a true non recourse state. We spoke with 2 lenders and check our credit regularly and it has not shown up.
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dross1958
then go forth and get a new house :-)

here in florida it is as bad as AZ, and people are doing the same thing, on our street - the prices have dropped 75 percent since 2005
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Thanks for the input dross!
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