My question involves real estate located in the State of: My question involves real estate located in the State of: California (need a refi of primary residence) and New York (Ch7 surrendered rental properties)
I surrendered two New York rental houses to the court during a Chapter 7 BK here in my own state of California after they both went vacant at the same time during the economic down-turn. Both mortgages had my name on them with the bank and were fully discharged in the California BK, but upon surrender, the property titles themselves were still being held separately in my single-member LLC. Even though we no longer owned the properties, a couple of YEARS later a notification letter was sent to the LLC address stating that the properties had ultimately been foreclosed on and solt at a tax sale by whomever it was that ended up taking over each of the surrendered properties from the court.
Only the Chapter 7 BK appears on my personal credit. The subsequent sale of either of these properties do NOT show up on my personal credit since title was held by the LLC. I'd like to refinance my primary CA residence now but the last lender told me I needed to wait at least 3 years after the final sale of those rental properties, even though they were both surrendered/discharged and I was no longer the owner at the time they were sold.
What is actually looked at with respect to refi for my primary CA residence given that the much later sales of the surrendered properties were not even in my personal name and do not appear on my credit at all – only the BK? There is a question I saw on the FHA loan form that asks if I was ever “connected” to a foreclosure. In my mind… “no”….. because I only have a bankruptcy. I didn’t actually own them anymore when they continued on with foreclosures MUCH later. Can I answer “No” on that question? Lenders don't seem to be able to give me a straight answer on how to answer this. I only know about the sale dates because I actually opened the notification letters they sent to the old LLC address.