So I finally talked to the mortgage banker I applied with on Saturday and he basically said because my foreclosure doesn't show up on my CR he would want to submit it to USDA or FHA as a regular application and if they find it, switch to FHA Back to Work.
Is it just me or does this seem like a dodgy practice and possibly illegal? Should I be running as hard and as fast as I can? I feel there's no way that USDA or FHA underwriters won't find it and then can't we both get in trouble? I told him the deed was transferred 4/12 but I went delinquent in 4/10. He asked when it actually was foreclosed on and I said, "well doesn't it go by deed of transfer, so April 2012" and he said he'd just put it down as 4/10 and see what happens . . . .
I guess his UWs don't care?
Starting Score: 2/2013 EQ 535
@StartingOver10 wrote:
@songsofexperience wrote:So I finally talked to the mortgage banker I applied with on Saturday and he basically said because my foreclosure doesn't show up on my CR he would want to submit it to USDA or FHA as a regular application and if they find it, switch to FHA Back to Work.
Is it just me or does this seem like a dodgy practice and possibly illegal? Should I be running as hard and as fast as I can? I feel there's no way that USDA or FHA underwriters won't find it and then can't we both get in trouble? I told him the deed was transferred 4/12 but I went delinquent in 4/10. He asked when it actually was foreclosed on and I said, "well doesn't it go by deed of transfer, so April 2012" and he said he'd just put it down as 4/10 and see what happens . . . .
I guess his UWs don't care?
Your instincts are correct. Run away from this guy - he is trouble (with a capital T).
Yes, one of the first things they will check is the transfer date of the deed.
I also feel like I should report him! What a mess.
Thank you Dallas! That's what I thought. I was so horrified I just said, "email me the stuff you have and we'll talk." Should I try to get him on the phone to repeat it and record it or get him to spell it out in an email or just walk away and do nothing? To whom would I report him? NMLS?
Okay . . . maybe it's just people who don't understand BtW? Or because my scores are higher than 640 and because the FC doesn't appear on my credit report - is THAT what's throwing people??
I talked with a local lender and she's been great - really nice and sweet so I don't suspect her of fraud the way I do the other guy, but she ran and my credit and then emailed me this:
"I think you will be fine with a regular FHA loan your credit scores are 685,695 and 678. You will need to write a letter about the collections and judgment but that should not be a problem."
Isn't this the same issue - I CANNOT go regular FHA because of the foreclosure! I asked her to clarify.
@songsofexperience wrote:Okay . . . maybe it's just people who don't understand BtW? Or because my scores are higher than 640 and because the FC doesn't appear on my credit report - is THAT what's throwing people??
I talked with a local lender and she's been great - really nice and sweet so I don't suspect her of fraud the way I do the other guy, but she ran and my credit and then emailed me this:
"I think you will be fine with a regular FHA loan your credit scores are 685,695 and 678. You will need to write a letter about the collections and judgment but that should not be a problem."
Isn't this the same issue - I CANNOT go regular FHA because of the foreclosure! I asked her to clarify.
Unfortunately, you are dealing with incompetent and/or very lazy people. As you know, I successfully navigated through the BTW program and got my mortgage and my house. I can assure you, my success was due to my own research, knowledge, persistance, etc ... not the LO's.
All the best with the next LO that you find.
So I was going to post thie item below and then I decided to call FHA. They said, "if it's not on your CR apply using regular FHA and if it gets checked and there's a manual underwrite you'll just have to switch to Back to Work!!"
What?! This is from FHA!
She said it's because it's not on my CR and it probably won't even get flagged by them and will likely just get approved without any need for Back to Work, but if for some reason it comes out they'll just switch me over.
This reads to me that if they put you through GUS and you do not get a REFER or do not get a manual downgrade you don't need to use the provisions of the BtW?