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Established Member
co791
Posts: 20
Registered: ‎05-24-2012
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4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

[ Edited ]

So My story goes like this:

       Contract signed on june 15th.  FHA  3.5 %  down, Foreclosure was 4 years ago, fico score ranged from 640-666 during this process.  Throughtout the time of my application I settled any collection that was on my credit, so that no longer was an issue, neither was income, I make good money , Solid rent history for 3 years with a refererance from my landlord.

        The issue came up in the first week of August, my 2nd mortgage on the foreclosed home, ( Citifinancial) was settled.  Residential Home Funding wanted proof that it was over 3 years foreclosure for the second mortgage.   Hello?  I tried explaining that the 2nd went to charge off , to which I then settled. ( Had settlement letter as well).

         Fast forward to last week.  I submitted a copy of the original Judgement of Foreclosure which named Citifinancial , myself and HUD, and of course the original Mortgage through CitiMortgage.   The underwriter recieves it, likes it, but has to send it out to HUD to confirm it?

          Ive been trying to get this done before my son starts the first day of school, and my landlord is currently selling the house I am in now. Imagine the tension. Does anyone know or has had any experience like this, where you have to wait for HUD to reply to an underwriter?  Im scared to death that this could drag on even longer.

          Any help would be appreciated!

Established Member
co791
Posts: 20
Registered: ‎05-24-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

[ Edited ]

I forgot to mention that I met all of the underwriters conditions , but they still wanted proof that the 2nd mortgage was Foreclosed more than 3 years ago. I submitted the judgement of foreclosure from 2008 right away...And still I wait.

New Contributor
mrordinary
Posts: 72
Registered: ‎03-11-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

So... I have a question for you. I have a foreclosure from 4 years ago also. But I was told I didn't have to pay/settle the second mortgage.... It doesn't report as a charge off though. It actually (oddly) reports as Paid/Closed. But as recently as last November they sent me a settlement letter? A little off topic but I wonder if it'll come up when I get to your stage.

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New Contributor
mrordinary
Posts: 72
Registered: ‎03-11-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

Lol... Oops. The question was were you required to settle the second or did you just do it?

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Established Member
co791
Posts: 20
Registered: ‎05-24-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

I was required to settle the debt.  Which I did.

Established Member
co791
Posts: 20
Registered: ‎05-24-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

I just made it out of underwriting last night.    Take my advice and clear up that 2nd mortgage before you do anything.  I could have moved a month ago had it not been for this.

New Contributor
mrordinary
Posts: 72
Registered: ‎03-11-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

Oh boy. Well, I have already started the process... If I have to settle, I'll have to scrape together $5k,that was the settlement amount given last year. I'll find out soon enough! Thanks for the info!

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co791
Posts: 20
Registered: ‎05-24-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

Settle that second mortgage ASAP . You don't want to get to underwriting and then have to do it. What was the original amount? If they are offering 5k, you can most likely get that lower
Established Member
co791
Posts: 20
Registered: ‎05-24-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

By the way , we closed on 9-11, I am knee deep in home improvements , windows , tree removal. Etc etc, but this is what we wanted !
New Contributor
mrordinary
Posts: 72
Registered: ‎03-11-2012
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Re: 4 yrs Foreclosure/ Submitted proof Waiting on Confirmation from HUD to close

Congrats to you! My original balance was $28k. Settlement offer was around $5k in 2011. I've wanted to call but my LO doesn't want me to touch anything yet. Good luck with your home improvements and I'll update when I get more info!


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