FHA LOAN 3 YEARS AFTER FORECLOSURE?

[Anonymous]

Does it have to be exactly 3 years? and is it 3 years from when the foreclosure proceedings started or from when the house sold? Can it be 2 years and like 8 months?

[Anonymous]

It goes from the sale date and yes, generally you have to hit the full 3 years.  Even then that is still not a magical point of approval.  SOme lenders may want longer.  The key will be how well you have reestablished credit.  They also may want to see some level of reserves to offset the extra risk.

[Anonymous]

Hi, what do you mean by "some level of reserve?" Also what is considered extenuating circumstances? Meaning my husband was laid off and I was suffering from sever post pardom depression after having my child and was unable to work. Was seeing a therapist and eveyrthing. my husband was only bringing in 80 percent of his income which was effecting us making our morgtage payment. Wondering if this is considered a extenuating circumstance and what type of letter we would need to prove this?

[DallasLoanGuy]

3yrs from the final 'foreclosed' date....not when it started.

ask your lender about the extenuating circumstance. that would be an underwriter judgment.

[Anonymous]

Some level of reserves means that since you defualted on a past loan, it would not be uncommon for a lender to want to see reserve funds like 3-6 months of your mortgage payment left in savings at close or the like.

As far as extenuating circumstancesI am not sure on that.  Lay-off and PPD may or may not hold alot of water for this.  Especially if you r husband found another job at 80% of his pay in any reasonable time.  THey are usually looking for stuff like  forced job transfer, death in the family, serious debilitating injury, etc.  Not to say in any way that PPD is not an issue, but to someone judging risk, it is not likely to be looked at the same as someone who got in a car wreck and could not work for a year, etc.  

You could go ahead and apply and see what happens if you have really rebuilt your credit and have some extr amoney (besides down payment and closing costs) saved up.  Most likely you will have to wait until the 3 year mark but who knows.  It is all in the hand of whatever underwriter you get when it comes to exceptions. 

[Anonymous]

 If a home was included in a BK, effectively giving the keys back (home left in move in condition as well) does the date the BK was final become the date we are targeting?

The second mtg company reported 6 mo's later?

[Anonymous]

 I have everything in place, credit and the cash to buy, so this is all I am waiting for.

[bbb3601]

for us it was/is the date the sherrif sale took place. This can vary by lending institution as some will use the date title actually transfered. For us the sale date was fine (verified by title company) via chase, M&T, 5'3rd, Huntington, and Key. We chose M&T

[bbb3601]

We have not been asked to show any amount of money other than our dp...........

[StartingOver10]

BK only wipes out your personal liability for the loan, it does not remove the mortgage lien from the property.

The mortgage lien still has to be "removed" from the property. The lien is either removed through foreclosure or short sale or deed in lieu. The foreclosure action wipes out the second mortgage lien. So your 3 yrears still begins from the date that the deed transfers from you to either the bank or from you to the new buyer in the case of a short sale.