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Old 06-14-2015, 09:21 AM
 
Location: Port Charlotte
3,926 posts, read 4,394,513 times
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Go down and talk with a local community bank. A mortgage loan specialists will give you the skinny on what it will take. Better than what you will get from us.
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Old 06-14-2015, 09:25 AM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
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maybe i will.

i just dont want to have my credit pulled again.

maybe i can tell them everything and just tell them the info w/o them having to pull my credit.
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Old 06-14-2015, 09:44 AM
 
3,317 posts, read 7,253,255 times
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Quote:
Originally Posted by StreetSmarts View Post
So how much longer would I have to wait? another yr?
2 years from Discharge date for VA, 3 for FHA/USDA, 7 for Conventional, unless FC was discharged in the BK, then it's 4 years from BK discharge date.

* When both the bankruptcy and foreclosure are disclosed on the loan application, or when both appear on the credit report, then we may apply the bankruptcy waiting period if the appropriate documentation is obtained to verify that the mortgage loan in question was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting period must be applied. All pages of the bankruptcy documents must be included in the loan file and the mortgage must be clearly identified as being included in the bankruptcy.
NOTE: The waiting period commences on the completion, discharge, or dismissal date (as applicable) of the derogatory credit event and ends on the credit report date.
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Old 06-14-2015, 09:47 AM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
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yes the home was why we filed for BK. the banks were relentles with us and wanting us to pay them back, which is why we filed, so the house was included in the BK. they didnt come after anyone else tho.
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Old 06-14-2015, 10:48 AM
 
3,317 posts, read 7,253,255 times
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If you did not serve in the military, you will be able to close on an FHA purchase 36 months after the Discharge Date of the Chapter 7. There are extenuating circumstances clauses that can reduce that to 2 years, but that's a really small box to try to fit in:

Mortgagee Letter 2013-26, Back-to-Work – Extenuating Circumstances. This consideration will be allowed only with Loan Committee approval.
The following is from Mortgagee Letter 2013-26, Back-to-Work – Extenuating Circumstances.
“As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income, were unable to make their monthly mortgage payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, borrowers’ credit has been negatively affected. FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

FHA and (my company) are allowing for a consideration for borrowers who have experienced an Economic Event. This is for purchase money transactions only. Down Payment assistance programs are not allowed.
Economic Event
Economic Event is any occurrence beyond the borrower’s control that results in Loss in Employment, Loss of Income, or a combination of both, which causes the reduction in the borrower’s Household income of 20% or more for a period of at least 6 months.
The Economic Event must be documented:
Any credit issues were due to the loss of employment, or significant loss of household income beyond the borrower’s control.

The borrower must demonstrate a full recovery from the economic event.
The borrower must complete housing counseling.
Loan Committee discretion in determining a valid Economic Event.

Derogatory Credit
Collections and judgments must be the result of the economic event and documented.
A minimum of 12 months must have elapsed since the date of the foreclosure or deed-in-lieu of foreclosure.
A minimum of 12 months must have elapsed since the date of sale.
A minimum of 12 months must have elapsed since a Chapter 7 bankruptcy.
A minimum of 12 months since discharged prior to application for a Chapter 13, or a minimum of 12 months pay-out has elapsed and the payments are on time.
If not discharged prior to loan application, the borrower must have written permission form the court.

Satisfactory Credit
The borrower must have satisfactory credit before the Economic Event, and that the derogatory credit occurred after the event.
Borrower’s credit history is clear of any housing, installment, and revolving accounts.
Any open mortgage must be current and show a 12 month satisfactory payment history.
Mortgages may have been brought current through loan modification, as long as all payments have been documented within the terms of the modification.
The borrower must have re-established satisfactory credit for a minimum of 12 months.
Loss of Employment

Loss of Employment must be verified by obtaining:
A written VOE evidencing the termination date or in cases where the prior employer is no longer in business:
Written termination notice,
Other publicly available documentation of the business closure, and
Documentation of receipt of unemployment income.
Employment analysis will be at Loan Committee discretion in determining the Economic Event.

Loss of Income
Movement Mortgage must verify and document a reduction in the borrower’s household income of twenty percent or more for a period of at least six months that resulted from a loss of employment, loss of income or both.
Loss of Income must be verified and documented with the borrower’s Household Income prior to Loss of Income by obtaining:
A written VOE evidencing prior income or
Signed tax returns or W-2’s evidencing prior income.
For seasonal income
Document a 2 year history of receipt of seasonal employment in the same field prior to loss.
For part time income
Document and verify a 2 year history of continuous part-time employment just prior to the loss.
Loss of income analysis will be at Loan Committee discretion in determining the Economic Event.

Housing Counseling
The borrower must receive homeownership counseling from a HUD-approved housing counseling agency. The counseling may be conducted in person, via telephone, internet, or other methods approved by HUD.
The counseling must be completed a minimum of 30 days, but no more than six months prior to submitting a loan application and TBD pre-approval files.
The Housing counseling agencies must provide the following disclosures to all borrowers:
An explicit description of any financial relationships between the agency and any lender.
A statement that the borrower is not obligated to pursue a loan with a lender; and
A statement that “Completion of this housing counseling program and receipt of a letter of completion of counseling do not qualify (you/the borrower) for an FHA loan. A lender will have to determine if (you/the borrower) qualify for a loan. You understand that you may not be approved for a loan”.

The agency must provide information on alternative services, programs, and products that are available.
Required Documentation
The borrower has completed the required pre-purchase housing counseling by obtaining a letter from the borrower issued by the Participating Housing Counseling Agency on agency letterhead and that includes the agency’s Tax Identification Number (TIN). The letter must state: the borrower’s name, the counselor’s name, that counseling was delivered in accordance with ML 2013-26 requirements, the date upon which counseling was completed, borrower’s signature and the signature of an authorized official of the counseling agency providing the counseling, and
The borrower received the proper disclosures from the housing counseling agency.

Last edited by Pfhtex; 06-14-2015 at 11:06 AM..
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Old 06-14-2015, 12:10 PM
 
2 posts, read 2,082 times
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You would be best to determine now whether or not your house has been deeded back to the bank. Waiting periods for FC or BK discharge that includes a house won't matter if your house hasn't gone back and instead still legally belongs to you.
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Old 06-15-2015, 07:57 AM
 
12,404 posts, read 9,199,643 times
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Quote:
Originally Posted by JNR417303 View Post
Personally I have no idea why a bank would ever allow someone with a previous foreclosure and bankruptcy to take out another mortgage. I get that people fall on hard times, markets crash, etc., but you walked away from your responsibilities once. What's to say you wouldn't be willing to do it again if the going gets tough? It just seems like a bad business practice if we don't want the market to crash again.
The credit system is set up to give people a second chance after 7 years tops, and I think that makes business sense. If you are concerned about the potential for serial defaulters to drain the system, keep in mind that even a 7 year waiting period severely limits the amount of damage even a serial defaulter could do to the system.

Plus, if someone has been paying everything on time for 7 years, we have at least a prima facie reason to think they have gotten their act together. Why would someone pay everything else on time (credit cards, car loans, school loans, whatever else), and then not pay for a roof over their head of all things?
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Old 06-15-2015, 10:46 AM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
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update: so i told you guys in my first post i'm trying to lower my car payments interest rate ... so i applied online trying to refinance... i am going to call some of these banks back in a minute... who thinks i can get lower than 5.5%??? BK discharged last yr in January. bought a vehicle 3 months after discharge and i got 5.5% on a used vehicle!!! But i want to lower it

Last edited by StreetSmarts; 06-15-2015 at 11:32 AM..
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Old 06-15-2015, 12:04 PM
 
8,768 posts, read 10,335,902 times
Reputation: 13823
Quote:
Originally Posted by StreetSmarts View Post
update: so i told you guys in my first post i'm trying to lower my car payments interest rate ... so i applied online trying to refinance... i am going to call some of these banks back in a minute... who thinks i can get lower than 5.5%??? BK discharged last yr in January. bought a vehicle 3 months after discharge and i got 5.5% on a used vehicle!!! But i want to lower it
I think you can get a loan below 5.5%.

The issue isn't if you can get the loan, the issue is what will it take to find and be approved for that loan.

If I was to decide to buy a used vehicle, I can walk into any bank or credit union and within a minute they will approve me for the loan at the LOWEST rates and best terms available. No wondering IF I will get; no wonder when I will get it; no wondering if i will even be approved.

Whenever you decide to borrow money, you have a pool of tens of thousand of choices all willing to give you money. But, with a foreclosure, many in that pool will turn their backs and not even talk to you. With a bankruptcy that pool is cut even further as they slam their doors on you. With every ding, dent and dang on your credit, more and more opportunities get shut off. Sure you can hunt for the right loan at the right interest rate with the right terms, but you have to hunt for it. Those with clean credit can simply put out their hand and I know they will get it at the BEST interest rates.
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Old 06-15-2015, 12:12 PM
 
Location: KYLE TEXAS
431 posts, read 381,144 times
Reputation: 278
I had a business go down almost 30 years ago got excellant credit now (700+) but it took me about 10 years to get there just be patient it takes time
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