qualifying for a mortgage after a forclosure?? (loan, interest rate, foreclosure) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

tripleash97 · 04-26-2011, 03:48 PM

I was curious if anyone had any advice for obtaining a mortgage after a forclosure. Here's the story:

My husband has worked full-time for the same company since 2001.

Because of becoming a primary caregiver for a sibling that was permanetly disabled after being a victim of a robbery I had to stop working in 2008.

We had a rental property that became vacant and with lack of income the house was forclosed on in 2009.

Primary residence had a house fire that was a total loss july 2009.

We agreed on a land contract with a balloon after 2yrs.

House was 104,00, we put 40,000 down. That leaves us with 64,000 we need to finance.

Current score is 600.

Is there anything we would qualify for? Where do we go from here?

ShanetheMortgageMan · 04-26-2011, 05:17 PM

Foreclosure puts you out from using conventional financing for at least 5 years, unless it was due to extenuating circumstances (having to provide care giving probably would be considered, but not having a tenant for 12 months would not), then just 3 years is required.

3 years FHA will finance you no matter the reason for the foreclosure, some lenders make exceptions after 12 months if it was due to extenuating circumstances.

2 years VA will finance you no matter the reason for the foreclosure, some lenders make exceptions after 12 months if it was due to extenuating circumstances.

Is the balloon due now? Or 2 years from now?

tripleash97 · 04-26-2011, 06:12 PM

The balloon expires 01/2012. Does it help that we put the 40,000 down?

ShanetheMortgageMan · 04-26-2011, 07:16 PM

It's possible a small community bank which has their own programs may be willing to lend at decent interest rates, may be another 5-year balloon but it'd at least allow you to get out of this one. Otherwise just another private money loan like you are in now.

tripleash97 · 04-26-2011, 07:32 PM

Thank you! We never EVER anticipated being in this situation.

tripleash97 · 04-28-2011, 04:05 PM

Im not sure if this would open up any other options for us or if its the same story, but I was told today that as long as the land contract was recorded a refi would be an option. I dont know if that would be a more likely option or not...any input?

ShanetheMortgageMan · 04-28-2011, 04:34 PM

Yes that is correct, it's treated as a refinance. All of my advice was predicated on that.