3 YEAR WAIT FOR NEW MORTGAGE DUE TO 120DAYS LATES????

[ljohn27]

Does anyone know if I can get approved for a new mortgage with 120 days lates on current mortgage from 2012? I was told FHA want to see 3 years from last 120 late payment....is that true? If so, do I have a shot with a credit union or other conventional loan? Middle score (Lender Pull) is 689. Stable/study employment. HHI 100k+ 

[DallasLoanGuy]

120+ days is a significant credit event and treated the same as a foreclosure by every lender i know.

[ljohn27]

I understand...although I was never in foreclosure. Was able to recover so checking to see if there are lenders who offer flexible loan programs.

Can anyone else provide feedback?

[dreamer2014]

DallasTheLoanGuy is correct in lenders treating it as a foreclosure. We had a short sale and applying VA. The underwriters are asking to explain in detail why the lates so I imagine you will probably get the same, LOE. Ours was job loss and by the time we rcovered, the ginormous lump sum Chase wanted us to pay, we did not have so our best option was a short sale which they approved of. Keep us posted.

[dreamer2014]

Our mid scores, lender pull was 654, 689. Hope this helps.

[ljohn27]

dreamer2014 - thanks for sharing. Are you currently in the app loan process? If so, how is it going? If not...what was the verdict?

[dreamer2014]

Currently in the loan process awaiting processor to let me know if the paperwork u submitted is good for resubmit. I can't complain because we have not gotten a denial just needing clarification so I as well as my LO take that as a good. I will let you know when we get a clear to close for sure!

[ljohn27]

Best of Luck...sounds promising. Just curious...how long ago was your short sell? It is past the 3 year mark?

[Laura1369]

Ljohn27,

Dreamers short sale is between 1 and 2 years, but they are going VA so it is treated differently than conventuals, fha, or USDA. 

[ljohn27]

got it - well I submited a LOE and the LO is taking it to u/w. If it falls through I just have one more year to wait it out so not the worse thing in the world. Hopefully interest rates and housing prices will remain stablelized.