So, this is what the realtor explained to me about HUD's involvement in the approval process:
"Btw gives a list of items you need to prove in order to get the loan. Then you need to prove the traditional loan items that qualify you for a loan. The btw list is the part HUD needs to approve. Not you as a buyer. They need to make sure u meet each line of that list. Now this lender is questioning cause your bankruptcy doesn't say you where going to surrender the home. It said you where to keep it. So lender wants to make sure that even tho bankruptcy says one thing and your lease says another that HUD will approve the btw part of loan. Typically this is done after closing but that's only if all the btw items are exactly how HUD has it written. If it's not then they go to HUD with what they have and see if HUD would allow it." What was not exactly has HD wrote it is that the foreclosure happened 3 yrs after my bk7...even after not paying the mortgage for 4 years by the time it forclosed.
I filed bk7 in 2010 - the house was included in my bankruptcy. It does not say I am going to reaffirm and the house was included in the list of debt discharged. We have been renting since I filed bankrputcy in 2010. Our credit scores - my husband 786/803/792 (the foreclosure does not appear on his credit report) - mine are 703/689/697. We have 28k sitting in our bank account for closng. We have a combined income of $157k without annual bonus. We qualifiy with the exetnuating circumstance because I lost my job in 2009 and did not return to work until november 2011 - more than a 20% decline in income. The lender approved us under the program BUT HUD won't buy the loan after we close. HUD said no because the house did not forclose until 2014 and sell in a sherff deed until 2015, 3 years after I loss my job. We do not have any late payments ever, no collections or credit card debt - before or after the mortgage. We tried to modify the mortgage two times but the bank kept saying they lost our paperwork. To top it all off, in 2013 we were part of the Independent Foreclosure Review and received a settlement because we were stuck in the foreclosure limbo. We were also part of the foreclosuregate because our bank was one of the major banks that put a freeze on forclosing on homes. Our original loan was a conventional loan. The BTW program in my opinion is bogus - they don't try to approve you, they look for reason to deny you. The broker said that she was going to call HUD with the lender on the phone tomorrow because she tried to call but they will not talk to her unless the lender is on the phone. I told her that I was over this...been going through this since February. We were supposed to sign contracts tomorrow - glad we did not. Obviously the lender wants to sell the loan once we close but HD says they won't buy it back.
