PR Removal vs Exclusion - is the BK really off my file?

[Anonymous]

CH 13 is scheduled to drop off March 4, 2017 – 7 years post filing.   I just submitted disputes with the big three to request an early removal (wording – “please consider removing yada yada…”).  Provided the PR is removed will the BK be entirely deleted from my credit file, all files ALL TRACES?  My apprehension is because I recently learned there are two (at least) credit files per bureau.  Found this out when I pulled fresh EQ reports from MyFICO and EQ free yearly and there was a discrepancy.  Apparently EQ removed a previously disputed late payment on their internal file but not the file creditors see (and what myFICO obtains).  

Being a bit impatient but it is urgent that I refinance ASAP.  My lender states that I do not qualify for conventional mortgage with a BK on record and I am not eligible for FHA.  I do not want to waste the HP trying as I am in optimization mode to get a good loan. 

I am also confused by some of the posts I have read.  Is there a difference between BK “removal” and “exclusion”.  If so should I be worried about that as well?

[StartingOver10]

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@Anonymous wrote:

CH 13 is scheduled to drop off March 4, 2017 – 7 years post filing.   I just submitted disputes with the big three to request an early removal (wording – “please consider removing yada yada…”).  Provided the PR is removed will the BK be entirely deleted from my credit file, all files ALL TRACES?  My apprehension is because I recently learned there are two (at least) credit files per bureau.  Found this out when I pulled fresh EQ reports from MyFICO and EQ free yearly and there was a discrepancy.  Apparently EQ removed a previously disputed late payment on their internal file but not the file creditors see (and what myFICO obtains).  

Being a bit impatient but it is urgent that I refinance ASAP.  My lender states that I do not qualify for conventional mortgage with a BK on record and I am not eligible for FHA.  I do not want to waste the HP trying as I am in optimization mode to get a good loan. 

I am also confused by some of the posts I have read.  Is there a difference between BK “removal” and “exclusion”.  If so should I be worried about that as well?

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^^^That is a lender overlay.   There are plenty of lenders that will loan to you with a Bk Ch 13 discharged nearly 7 years ago.  So it is the specific lender you spoke to that won't allow it.  Find another mortgage lender - there are many that won't find this is an issue at all. In fact, there are lenders that will give a mortgage loan to a borrower during the Ch 13.  

This lender sounds very, very conservative. Just so you know, even though it is off your record, they will know about the Ch 13 anyway.  You are required to disclose it on the mortgage application 1003.  Google one so you are familiar with the questions - and you can't avoid those questions.  The Ch 13 is pubic record and available to anyone for review,  

If I were in your shoes, I would start looking for another lender.  

[Anonymous]

Thanks StartingOver, I didnt even think to review the application form in advance.  Now that I see it asks "Have you been declared bankrupt within the past 7 years?".  The lender asked if I had a bankruptcy on my credit file - two different questions and two different answers. 

You mentioned a 7 year discharge time frame, I'm only coming up on 2.  It was almost 7 years ago that I filed.   I was aware FHA was more lenient with time frames but they will not finance my property due to a water well exclusion.  

[StartingOver10]

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@Anonymous wrote:

Thanks StartingOver, I didnt even think to review the application form in advance.  Now that I see it asks "Have you been declared bankrupt within the past 7 years?".  The lender asked if I had a bankruptcy on my credit file - two different questions and two different answers. 

You mentioned a 7 year discharge time frame, I'm only coming up on 2.  It was almost 7 years ago that I filed.   I was aware FHA was more lenient with time frames but they will not finance my property due to a water well exclusion.  

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Below are a couple of points for you:  

• That water well exclusion for FHA is not an FHA guideline. It is another lender overlay - even if the lender told you it was an FHA guideline, it isn't.  I know this because I have been selling hundreds of properties over the years (I'm a Realtor) with water wells to buyers with FHA financing and I have only run across one lender that requires city water. Naturally, I stay away from that lender because they had other unreasonable criteria as well
• Bk 13 is much more mortgage finance-friendly than a Ch 7.  You can get financed during the Ch 13 after 12 months of on-time trustee payments. It doesn't matter to you because you are already discharged, but I want to let others know that a Ch 13 has different criteria for approval.  Some lenders are much better than others when getting a mortgage. In general, the big box banks are very, very conservative now so they aren't worth applying to for a mortgage in my opinion. Go with someone that only has mortgages and not other banking services too. There are exceptions to this rule (of course!), but you get better results today going to a mortgage banker that originates, underwrites and funds their own loans. If you need a referral, check with your friends, family or your Realtor. PM me if you want another referral to excellent mortgage bankers.