Any way around 3 year waiting period after foreclosure?

[geekmama]

I had a foreclosure in 2014 in Pennsylvania, due to a divorce. My credit report has the date as June 2014 however the county court lists the transfer as august 2014. The foreclosure was on a conventional mortgage.

I am interested in obtaining an FHA mortgage in Maryland. I'm reading that there is a three year wait.

Can anyone give me insight?

[oldman425]

Chapter 7 or 13?  My 13 discharged March 2015 and I learned that we need to be out of the BK for two years, not 3. 

[VALoanMaster]

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@geekmama wrote:
I had a foreclosure in 2014 in Pennsylvania, due to a divorce. My credit report has the date as June 2014 however the county court lists the transfer as august 2014. The foreclosure was on a conventional mortgage.

I am interested in obtaining an FHA mortgage in Maryland. I'm reading that there is a three year wait.

Can anyone give me insight?

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Hi Geekmama,

I just helped a client in AZ with a very similar situation.

You do not have to wait 3 years as long as the following conditions apply to your situtaion:

1) The property was awarded to your ex in the divorce.

2) The mortgage was current/not in foreclosure at the time it was awarded to your ex.

3) You have re-established your credit since the foreclosure.

When was your divorce? Did you have separation agreement prior to the divorce?

Was your ex awarded the property? Was the mortgage current at that time?

[VALoanMaster]

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@oldman425 wrote:

Chapter 7 or 13?  My 13 discharged March 2015 and I learned that we need to be out of the BK for two years, not 3. 

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Hi Oldman425,

Actually the FHA guidelines only stipulate that if your chapter 13 has not been discharged for at least 2 years, the lender must do a manual underwrite on your loan so you're eligible right now.

Heck FHA & VA both allow you to take out a mortgage while you're still in the ch 13 bk!