Feeling defeated! Are there any conventional lenders who will approve a bad CAIVRS

[jenrhi]

Ch 7 bankruptcy discharged in 09/2008--my house has been sitting empty since then- i had an 80/20 loan thru USDA and house FINALLY was auctioned 2 weeks ago with USDA buying it back at a $13k loss--I have worked extremely hard to build my credit back up over the last few years and am hovering around 670 EQ only to be told that I still won't get a loan because I am now on a CAIVRS report and will be for the next 3 years. I knew I would be out of luck to get any type of govt loan due to the rules about the timeframe between the foreclosure but i thought the clock would start ticking as soon as the deed was out of my name and it sounds like that isnt the case. I still have to wait for HUD to pay a claim to USDA for the difference, which can take almost another year??

Do i even have a chance at conventional and if so, are there lenders I should specifically work with in this type of situation? By the time this is all said and done-i could be 10 years from my bankruptcy date and STILL not be able to buy!

[BrianB_The_Loan_Professor]

I am sorry to hear that this is dragging out on you - Conventional requires an even longer wait that Govt loans in this scenario - it may be a while before you are able to get cleared to borrow again. Wish I had better news to share..........................

[StartingOver10]

From what I have seen the wait period does begin from the date the deed transfers from you back to the bank. It is 3 years from that date to the next application date.

I know that your CAIVRS has to be clear at the time of application, but I think you are only talking about 3 years from the date of transfer for a new FHA or VA loan and not an additional year to take into account the reimbursement by HUD for the deficiency.

Is that specifically what your lender said?

[jenrhi]

Actually the lender pretty much dumped me once the underwriter brought up the caivrs report--i got the impression i knew more about this process than he did. I was the one who was insistent on him taking this the whole way to desktop underwriting since I knew the CAIVRS would be an issue. He was ready to send me a good faith approval and refer me to a realtor! I was very upfront with him about my situation- he knew of the bankruptcy, knew of the foreclosure but kept saying that we could go conventional.

[Peter1142]

I believe the issue is not CAIVRS, it is that the deed was only just transfered, and that is when the waiting period starts.

LO often sucks. They only ask for A and then the underwriters ask for BCDEFGHIJ. They figure getting your application in is the surest way to get a commission. Let the underwriters do the worrying.

[jenrhi]

And I'm ok with that-i expected a waiting period. I'm jsut glad the clock is finally starting--am i correct that it is 2 years from the date of the transfer? Or is it 3?

[StartingOver10]

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@jenrhi wrote:

And I'm ok with that-i expected a waiting period. I'm jsut glad the clock is finally starting--am i correct that it is 2 years from the date of the transfer? Or is it 3?

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It is 3 years.

If you had a BK only with no property/mortgage involved then it would be two years.