Reply
Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

FHA requirements

[ Edited ]

Interesting scenario.  In the process of going through a divorce, a couple files bankruptcy.  The house they had together is not foreclosed on, and the woman was not listed on the mortgage in the first place. However, she was listed as a co-borrower on a Home Equity line of credit.  The ex-husband is still paying for the house and living their.  The Home Equity line was discharged at bankruptcy. The mortgage is still being paid.  Again, there was no "traditional" foreclosure but is it still considered a foreclosure?  The mortgage was reaffirmed by the ex-husband, who as i said, is still paying and living in the home.  Only the home equity line was discharged.

Community Leader
Senior Contributor
StartingOver10
Posts: 4,519
Registered: ‎03-06-2010
0

Re: FHA requirements

I'm not sure I understand your question. Are you asking if the ex-wife can go out and buy another property using an FHA mortgage?

 

Or are you asking if the ex-husband can go out and buy something else with an FHA mortgage or refi his current home?

 

 

Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: FHA requirements

Would the ex-wife be eligible to purchase another property. Sorry for the confusion.
Community Leader
Senior Contributor
StartingOver10
Posts: 4,519
Registered: ‎03-06-2010
0

Re: FHA requirements


foofighter74 wrote:
Would the ex-wife be eligible to purchase another property. Sorry for the confusion.

I just had one of my sales close last month with this exact situation so the answer is yes, if she meets the other qualifying criteria, FHA will finance her.

In addition to the normal paperwork she has to supply to qualify for FHA, she will have to provide the note on the first house showing she was never on the note; the PSA (property settlement agreement) from the divorce, her divorce decree and her BK discharge and petition.

 

 

 

 

Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: FHA requirements

Even though she is still on the home equity loan?
Community Leader
Senior Contributor
StartingOver10
Posts: 4,519
Registered: ‎03-06-2010
0

Re: FHA requirements

Was she the only person on the HELOC?

Was she on the HELOC "mortgage" or the note?

 

Here in my area the spouse signs off on the mortgage to acknowlege the property is a homestead property. They are only responsible for repayment if they sign the note.

She discharged her responsiblity to repayment anyway through the BK.

 

What did she sign for the HELOC - the note? or the mortgage lien attaching it to the original property?


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}