What happens after fha foreclosure. Can I get a new mortgage?

[Catiej913]

We recently (within a few months) had a foreclosure finalized in New York. We weighed our options and considered this the best one. We had someone from the bank come out and secure the house and we signed over papers. We saved up money and bought a piece of land we want to eventually build on last year during this whole process. Even with the foreclosure our credit scores are over 700. One of the credit agency's even took the foreclosure off my husband's credit report already. It was an fha backed loan through wells Fargo. We did not file bankruptcy. So my questions are:

Will fha or hud come after us for the balance owed (the house did not sell at auction)?
Can we get a construction loan through a local lender with the land as collateral and 10% cash down?
Will we have to pay taxes on the "income" of the house even if it didn't sell at auction?

Thanks

 

[FarmerJ]

I suspect that any lender out there will learn of the foreclosure and see red flags and may well require a giant down payment or may just refuse to write the loan. If you own that land perhaps rather than build you may want to buy a manufactured home and site it until more time passes. ( you are free to try to get another loan and the only way your likely to find out for sure is to try )

 

[perplexing]

We recently (within a few months) had a foreclosure finalized in New York. We weighed our options and considered this the best one. We had someone from the bank come out and secure the house and we signed over papers. We saved up money and bought a piece of land we want to eventually build on last year during this whole process. Even with the foreclosure our credit scores are over 700. One of the credit agency's even took the foreclosure off my husband's credit report already. It was an fha backed loan through wells Fargo. We did not file bankruptcy. So my questions are:

Will fha or hud come after us for the balance owed (the house did not sell at auction)?
Can we get a construction loan through a local lender with the land as collateral and 10% cash down?
Will we have to pay taxes on the "income" of the house even if it didn't sell at auction?

Thanks

See N.Y. Real Prop. Acts. Law § 1371

Please make sure it wasn't sold... the bank often will sell it to itself for exactly the amount owing but it won't show because they're not recording it with the county, to avoid paying transfer/recording taxes, since they already hold the lien. Whoever owns the house is responsible. That almost certainly isn't you anymore.

Otherwise, they have just 90 days from the sale to file a motion for the deficiency. Any liens are attached to the house, in NY, not to you. A HUD lien will follow the property it is attached to, not the original borrower.

 

[HUD-1]

I can answer question #1, HUD generally pursues deficiency judgments only in the case of fraud. (There is a 3 year period from the date HUD paid the lender a claim until you could get a new FHA loan.)