topic Re: Underwriter has a question, and doesn't like my answer... in Mortgage Loans

Underwriter has a question, and doesn't like my answer...

tankgrl — Thu, 16 Jun 2011 00:06:30 GMT

Hey, Folks-

My DH and I filed CH7 BK two years ago and our house was included in the BK. To this day, BoA has done nothing with the property - no foreclose or deed in lieu. We have not made a payment since the BK. We were prequalified to purchase a home on an FHA loan, and the loan processor emailed today saying we have a problem- 3+ years needed since foreclosure or d.i.l. But neither of these things have happened. Any knowledge/tips/ideas you can share? Thanks in advance!

Re: Underwriter has a question, and doesn't like my answer...

ShanetheMortgageMan — Fri, 17 Jun 2011 01:36:44 GMT

It's an FHA guideline that the foreclosure seasoning doesn't begin until the bank takes back the property, so yikes... 3 years and they haven't sold it? There was another thread on here a few weeks back with someone saying they were told they could get approved less than 3 years from the foreclosure date by another lender (perhaps yours?), but I haven't read anyone posting successful closings in that situation yet.

If you or your husband are eligible Veterans then VA financing actually goes by the BK date when a mortgage was included, but FHA nope.

Re: Underwriter has a question, and doesn't like my answer...

TexMontana — Fri, 17 Jun 2011 14:36:37 GMT

Shane, thanks so much for your reply. Here's the low-down:

2.5 years ago, my hubbs filed CH13 BK. It was discharged, no snags. His lawyer never said anything about deeding the house back to the bank at that time, so we didn't know we needed to. He was pre-approved twice by a lender, we have had inspections and appraisal, and suddenly we now have to wait three more years from the date that he gets the house deeded back to the bank. Somebody messed up. Essentially, we have to wait almost 6 years from a BK to get an FHA loan.

Re: Underwriter has a question, and doesn't like my answer...

TexMontana — Fri, 17 Jun 2011 14:37:29 GMT

huh? I have two user names....

Re: Underwriter has a question, and doesn't like my answer...

Lel — Fri, 17 Jun 2011 15:44:41 GMT

TexMontana wrote:
huh? I have two user names....

I'll notify an administrator of this situation. This has happened to other people.

Re: Underwriter has a question, and doesn't like my answer...

DallasLoanGuy — Fri, 17 Jun 2011 23:39:00 GMT

have you been living in the property?

Re: Underwriter has a question, and doesn't like my answer...

TexMontana — Sat, 18 Jun 2011 01:47:51 GMT

Nope. Not since the BK.

Re: Underwriter has a question, and doesn't like my answer...

ShanetheMortgageMan — Sat, 18 Jun 2011 05:41:53 GMT

Yeah that doesn't seem fair at all. A lender will have issues with FHA's system on this loan, they would need to basically get your full file in front of them and have the patience to call up the FHA HOC (Homeownership Center) that covers your area (if you are in Texas that would be Denver, CO) and start up communication to get confirmation FHA would insure your loan, then they could manually underwrite & approve it (which I'm sure they already planned on manually underwriting your loan, and that is where it gets caught, once the underwriter looks for that foreclosure sale date). You could also try calling your local HUD office and ask if they could help you work with the Denver HOC.

Re: Underwriter has a question, and doesn't like my answer...

TexMontana — Mon, 20 Jun 2011 19:51:43 GMT

Thanks for the info. The lender made it sound like there's no getting around or explaining around the issue. I'm going to call my local HUD office and ask for help. Thanks for the link.

Re: Underwriter has a question, and doesn't like my answer...

ShanetheMortgageMan — Thu, 23 Jun 2011 04:38:35 GMT

Welcome. Technically per insurance guidelines the lender is correct, please let us know the eventual outcome.

Re: Underwriter has a question, and doesn't like my answer...

TexMontana — Fri, 24 Jun 2011 12:52:05 GMT

And the answer is.....a lender that does NOT pull a Drive Report!

Re: Underwriter has a question, and doesn't like my answer...

ShanetheMortgageMan — Sat, 25 Jun 2011 05:19:06 GMT

A "drive report"?

Re: Underwriter has a question, and doesn't like my answer...

TexMontana — Sun, 26 Jun 2011 13:14:46 GMT

Drive report: A brand name for a title search list. That's what the first lender said. Current lender search sate/county records and doesn't find my hub's name on any proprty...

Re: Underwriter has a question, and doesn't like my answer...

LoanMe — Sun, 26 Jun 2011 23:03:33 GMT

So what was the final outcome? Did the loan go through? I'm in a similar situation and have found no workaround...

Re: Underwriter has a question, and doesn't like my answer...

ShanetheMortgageMan — Mon, 27 Jun 2011 16:16:39 GMT

Oh, I thought you contacted HUD.