I had the misfortune of going through a bankruptcy about 30 months ago and I fully understand the ramifications of doing so. There is one problem I'm having that I don't quite understand.
I recently applied for mortgage pre-approval and everything is fine except that there is a foreclosure on my credit report. The bank says the BK is no problem since it has been more than 2 years since discharge and my credit has been squeaky clean ever since. However, the foreclosure is causing a problem since the bank wants 3 years to elapse since the foreclosure before they will approve a new mortgage. The problem is that the mortgage company waited almost a full year to foreclose. I thought that since the mortgage was discharged in the BK there would be no need for a foreclosure. Also I feel that I'm being penalized because the mortgage company was so slow in processing the foreclosure, if it was even necessary in the first place. This seems like a double whammy to me.
Can someone please enlighten me about this process?
Thank you very much and I apologize if I rambled too much.

If a bank has concerns about loaning money then they have right to refuse

I can understand this is a frustrating situation for you. Depending on the details of your bankruptcy petition, for instance what debts were discharged, and whether the judge in the bankruptcy action allowed the lender to proceed with foreclosure, the bank may very well have acted appropriately in the delayed foreclsoure. The bank may have been forced to wait to pursue the foreclosure, as opposed to simply waiting aroung for a year. You can certainly try to speak to an attorney if you have concerns that the lender did not abide by the bankruptcy court orders or if you believe there may have been errors in the process. You can learn more about an attorney through the locator service on LawInfo's home page at: http://www.lawinfo.com/.

Good luck in the future.