For most of us, that have already lost our homes. We run into this scenario.
We try to purchase a new home and because the banks did not take owner ship of the homes for years later we are unable to do so.
For example:
When we try to get an FHA loan, we must wait three years after the deed transfer and is not based off the time that the bankruptcy was discharged.
So if a bank does nothing with the home for 9 + years, and the deed does not transfer, for 10 years, then a person cannot buy a home for at least 3 years after the deed actually transfers.
Recommendation:
Law should be changed to if it was a Bankruptcy, and the home was included, then this should be the time you have to wait, not base it off of the deed transfer.