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04-30-2009 07:32 PM
05-01-2009 04:36 AM
Okay, I am going to wrap my replies all into 1. I have no confusion as to whether we were foreclosed upon or not. We most definitely were foreclosed upon, local circuit court proceeding, case no. and all. What I meant by included in the BK was that the debt was included in the BK, as in we did NOT reaffirm the home loan (since it was truly a junk loan). The reason for both the foreclosure and BK was due to the fact that our loans reset to an unmanageable level (up almost an additional $1500 mth) and the lender would not even consider working with us in any fashion (Countrywide). At the time we were told that there were no "workout" programs for people in "(our) situation". My husband and I talked to them on the phone practically every day for months, both before, during and after the BK was final, but the lender was uninterested or unable to figure anything out, so we did not oppose the foreclosure and it went rather quickly actually. I guess we will just have to wait until our 3 yrs are up or guidelines change, etc.
Does anyone know, per the guidelines, if the Final Judgment date (of foreclosure) is used or the sale date of the property (which of course adds a few months of waiting)?
05-01-2009 07:33 AM
05-01-2009 08:19 AM
FHA requires three years from the date the house was sold. In most cases it's easy for a lender to look up that date, regardless of what is shown on the credit report.
Conventional loans have a longer wait. USDA Rural Development will issue loans earlier if the rest of the credit profile is strong and your income and location qualify.
08-28-2009 09:47 AM
10-20-2010 05:19 PM
I searched all over the net for this for two years, and the bottom line is, it is up to lender discretion as to how they translate the FHA guidelines. FHA experts will never give you a direct answer (or they couldn't give my wife and I one after multiple calls during over the course of 2 years) because the answer is not black and white. Our home was listed on our credit reports as included in bankruptcy. Our prequalification came back with an approved eligible.
We included our home in our chapter 7. We turned our home back over to the bank because we could not afford to reaffirm the debt. We filed in May of 2008, and were discharged in August of 2008. These were the absolute worst two years of my life, and if you are considering bankruptcy, take that statement with you and heed the forewarning! The humiliation and shame you bring upon yourself and your family is NOT worth it if you can avoid it (some of us could not, and that is why I am in the situation I am in - it's something that will follow you forever)! But, I digress...
We spoke to lender after lender and everyone told us 3 years with the exception of 2 lenders. We discussed our situation with them, we had both of them take our situation to their respective underwriters, and both of them came back with a yes they could get us the loan. My FICO is 688 two years after my chapter 7 and my wife
s is around 667. I am typing this up from my new home we closed on last Tuesday.
I know this thread is as old as the hills and I hate to beat a dead horse, but i want to encourge those of you who are in similar situations to remain persistant. Ultimately in 7 years my wife and I want to have a FICO of 0. Because who needs credit when you can pay with cash? Hope this was helpful!
10-21-2010 01:18 PM
You plan that in 7 years you will re-write history such that you had paid off your new mortgage in 2007? (That's what you would have to do to have no credit score in 7 years).
10-21-2010 01:44 PM
10-30-2010 05:29 PM
I just want to say thanks for sharing your experience. I've just started the whole process and am also getting conflicting stories from lenders on the FHA loan date availability. My bankruptcy was dc 11/07 and the home was finally put into foreclosure 2/2008 and sold in a sheriff's sale 9/2008 but the auditor's website is showing 11/08. What a real mess.
It's good to know that there is light at the end of this really long dark tunnel. I'm happy to see that you are doing so well and wish you luck on your journey to your perfect FICO score.
11-04-2010 05:54 AM
You can go FHA after 2 years discharge. My discharge date was 7/09/08 and I purchased my home on 9/16/10 with a FHA loan. My loan officer said their are no differences in the underwriting requirements. The only thing they may do is a manual underwriting which takes more time.