FHA streamline refi after BK7 and foreclosure

[sc2761]

The loan officer has been corresponding with me every few weeks via phone call and email, most initiated by myself of course.  Verbally and in an email, he indicated that I will get the 3.875% the rate is locked at or better.  At this point 3.875% is what I'll get if loan works out due to the rates going up.  More recently, he again stated that the bank has alot of these that are waiting internal conditions mostly to be cleared once assigned to a processor as it has been through underwriting and they are eating any rate increases due to my loan rate being locked past the 60 days they initially locked it for.  I even signed some updated loan docs that were incomplete a few weeks ago and the rate again indicated 3.875% on there.  With all that being said, I hope that I get that rate and the loan closes fairly soon.  I think I will start emailing and phoning the rep every week from here on out.  

[djacks]

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@sc2761 wrote:

The loan officer has been corresponding with me every few weeks via phone call and email, most initiated by myself of course.  Verbally and in an email, he indicated that I will get the 3.875% the rate is locked at or better.  At this point 3.875% is what I'll get if loan works out due to the rates going up.  More recently, he again stated that the bank has alot of these that are waiting internal conditions mostly to be cleared once assigned to a processor as it has been through underwriting and they are eating any rate increases due to my loan rate being locked past the 60 days they initially locked it for.  I even signed some updated loan docs that were incomplete a few weeks ago and the rate again indicated 3.875% on there.  With all that being said, I hope that I get that rate and the loan closes fairly soon.  I think I will start emailing and phoning the rep every week from here on out.  

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Yes, I'd stay on them. Be polite yet vigilent. Of course, if you've already gotten your conditional approval it really shouldn't be long now. Once I got my conditions it wasn't long until I closed.

[sc2761]

Update:  I was contacted by a different loan processor a few days ago, when they asked for an updated bank statement to show I had enough funds in there to bring to closing.  The processor also said there are internal conditions she is helping the underwriter clear, but they needed nothing further from me at this point.  She did ask if I owned some business that was showing up on my "business credit report" that is tied to my address??  I told her no I don't have any business.  She indicated I should be signing next week.  Keeping my fingers crossed that the loan closes.  I am 6 months in at this point.  If it closes I will shave 1.5% off my rate and keep the mortgage insurance at the grandfathered levels from early 2009 when I first got this mortgage.  This would be awesome also knocking about $200+ off my monthly payment and then the mortgage insurance that is somewhere under $100, will fall off in 5 years.  I am already almost at 80% loan to value based on the purchase price.  Wish me luck!  Thanks!

[sc2761]

Update:  Wow, over 6 months from when I started this refi.  I got a call from the processor today that I will be signing on Monday night to allow the loan to fund this month.  Shortly after that a notary called and said she will meet me at my house for the signing.  I got quoted my PIIT payment will be roughly $325 lower than I was paying and of course a 1.5% rate drop.  I will celebrate and be happy once the loan funds due to wierd stories I always hear.  My mortgage will also begin reporting for the first time since right after d/c. 

[ShanetheMortgageMan]

That is quite the process, but congrats on your upcoming closing date.

[sc2761]

Thanks MortgageMan! I always thought I had to wait 3 yrs post foreclosure, but I guess refinancing in house FHA is the way to go to avoid that 3 yr requirement. My foreclosure was 1.5 yrs ago. Keeping my fingers crossed until loan funds next week....

[sc2761]

Now the signing has been pushed out to Thursday. They said due to some PUD issue. Whatever that means. The notary called me and said she will be here Thursday night. Frustrating, but its already been over 6mo and due to my situation I don't mind.

[sc2761]

Sorry for all the updates, but I thought I was there and this is really frustrating!  The Loan Processor had rescheduled for a 2nd time to 9/3/13 for the signing and then called me the other day to say the signing won't occur that day either.  Gave me some mumbo jumbo I didn't understand about not being able to do a short-pay?  Then said to make my 9/1/13 payment as normal and she would have to pull the new payoff after that payment is made.  After that loan will go back to underwriting after I submit my August bank statement.  She claims the underwriting should only take a day or two.  Then she assured me the loan will close in September as they dropped the ball on it and mgmt is watching the loan.  I tend to not believe her at this point, but at the same time she has been in contact with me every other day the last 2 weeks.  I told her to just contact me once they have everything together and that I am close to losing faith.  She kept apologizing and stating it will close in September.  So we will see and I'll post if any further updates.  

[sc2761]

The lender has put the refi through underwriting again (don't know what they were missing the 1st time around), ran my credit for 3rd time, and scheduled the signing/closing for 9/23/13.  Hopefully, this happens this time around and the loan funds.  Each month I am out $325 that I could be saving, however I will be grateful if it goes through since I am barely 1.5 years out of foreclosure.  At least some of my scores went up!

[sc2761]

Woohoo, signed on 9/23/13 and loan funded this morning!!  I was even told this FHA streamline refi does not have the 5 year mortgage insurance requirement.  I can remove it when I hit 78% LTV, which will be in 1 year!  Took 7 months, but I'll take it.