Foreclosure and Bankruptcy

Anonymous · ‎05-30-2009

My husband and I are in the process of trying to build a home. Mid fico scores are 620 and 689.

We live in Alabama and had a foreclosure in 2006. The home was purchased by a mortgage company at the courthouse in Nov. 2006. June 2007 an individual purchased the home from the mortgage company.

The bankruptcy discharge date was Nov. 2007. For some reason the foreclosure was included in the bankruptcy but had already sold.

Its our understanding that you can not get a mortgage until 3 years after the foreclosure and 2 years after bankruptcy. We can go VA or FHA.

Also, what is meant by "manual underwriter"..

rockymtngrl · ‎05-31-2009

Yes you are correct in the 2/3 year wait period.

Manual underwrite means that due to something on your credit report or mortgage application the computer software is not able to approve you and it needs to be sent to a person to manually go thru your mortgage package. With a foreclosure and BK less than 2 years ago you would have to have maunal underwriting.

The reason the foreclosure was including in your BK even though the house was already sold is because you still owed the bank money. They must have sold the house for less then what you owed them. If you did'nt include that debt in the BK the bank could have come after you and sued you for that money.

Anonymous · ‎05-31-2009

So when do we start counting the foreclosure? Also, the house sold for more than we owed. We owed approx. 72000 and it sold for 80000 +.

So if the underwriter do it manual it is possible to get approved even before the two years after bk?

One more question!!!!!!!!!!!!! LOL

Since the foreclosure in included in the bk will we still have the three years or do the bk only count and we wait the two years? bk will be 2 years in Nov. 2009.