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Old 04-28-2015, 03:04 PM
 
6 posts, read 6,350 times
Reputation: 10

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I went through a divorce and income loss in 2009 that forced me to file Ch 7 that was discharged 5 years ago. My mortgage which I included and was discharged in the Bankruptcy was not foreclosed upon until 2 1/2 years ago. My ex got the home in the bankruptcy and was responsible for payments post divorce which she did not keep up.

I did everything I could post BK to rebuild my credit and have a 724 mid score as of today. Have kept my Debt to Income under 12% including child support payments and have had stable employment for 4 years now with a salaried income of $101k.

Did all of this while putting my daughter through college which has limited my ability to save for a down payment.

FHA has told my Loan Officer they need 3 years post foreclosure but I can do a 5% down conventional with Fannie Mae backing it which supposedly only counts 4 years from the Bankruptcy date if the Mortgage was discharged in it and ignores the Foreclosure date.

What are my chances of getting through underwriting? I have two pre approval letters with Quicken and Wells Fargo but hear those are often not worth much.
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Old 04-28-2015, 03:31 PM
 
12,404 posts, read 9,209,597 times
Reputation: 8868
Shouldn't be an issue if it's been 5 years and you're up to 724, assuming you meet the other requirements (time on the job, debt to income ratio, and down payment).
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Old 04-29-2015, 12:58 PM
 
Location: New York
2,251 posts, read 4,163,764 times
Reputation: 1607
Quote:
Originally Posted by redhound1 View Post
.. What are my chances of getting through underwriting?.
See a underwriting problem due to the Chapter 7 - before approved for any new financing will be required you to reaffirm your debt the bankruptcy discharged. Any new lender will require you to satisfy the old debt. And/or showing your ex husbands income documents to cancel the mortgage payments of existing mortgage improving your DTI ratio. Can it be done - yes, but is is going to require a lot of paperwork both from you and your ex.

Saying the your ex got the home - even if you have a court order, in the banks eyes and your credit report. Your name is still on that mortgage. The only way you can come off the old loan - if your ex refinances and sells the property.

Forget trying to qualify directly with any large lenders like Wells Fargo. There will be many required pre & post closing conditions. If a condition comes up that cant be satified, your loan application is DOA. Normally do not refer Quicken, though recommend looking at a (knowledgeable) mortgage broker that is affiliated with different lenders. That can understand your situation and explain what needs to be done. Working with a broker if there is an issue with one lender, can switch to another lender without having to pay for another appraisal.

Good Luck..
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Old 04-29-2015, 01:30 PM
 
12,404 posts, read 9,209,597 times
Reputation: 8868
Quote:
Originally Posted by Modification Specialist View Post
See a underwriting problem due to the Chapter 7 - before approved for any new financing will be required you to reaffirm your debt the bankruptcy discharged. Any new lender will require you to satisfy the old debt. And/or showing your ex husbands income documents to cancel the mortgage payments of existing mortgage improving your DTI ratio. Can it be done - yes, but is is going to require a lot of paperwork both from you and your ex.

Saying the your ex got the home - even if you have a court order, in the banks eyes and your credit report. Your name is still on that mortgage. The only way you can come off the old loan - if your ex refinances and sells the property.

Forget trying to qualify directly with any large lenders like Wells Fargo. There will be many required pre & post closing conditions. If a condition comes up that cant be satified, your loan application is DOA. Normally do not refer Quicken, though recommend looking at a (knowledgeable) mortgage broker that is affiliated with different lenders. That can understand your situation and explain what needs to be done. Working with a broker if there is an issue with one lender, can switch to another lender without having to pay for another appraisal.

Good Luck..
Huh???? "Discharged" means that the personal liability for the debt legally ceases to exist. There is no debt to satisfy, as it was discharged.
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Old 04-30-2015, 06:21 AM
 
6 posts, read 6,350 times
Reputation: 10
I did not reaffirm. Half the reason I filed was because she refused to sell the home (we even had offers for much more than what was owed) and then stopped making payments.

Working with Wells Fargo now and it is not looking good. I like the LO I am dealing with but he is fighting with underwriting to try and push it through.
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