Help Needed!

[Anonymous]

Here is the short story.  Approved through automated underwriting.  A problem came up showing that I had a foreclosure in November of 2009.  That mortgage was included in a bankruptcy that was in 2005.  We never reaffirmed the mortgage, but did live and make payments for the 4 years and moved out in July 2009.  So what date is the correct one to go off of, the BK date of 2005 or the supposed foreclosure date of Nov 2009?  That mortgage was never reaffirmed out of bankruptcy and it never showed a foreclosure on my credit.  Please, any help would be greatly appreciated.  We are supposed to close this Friday and I just found this out.  If we can't close, I lose $7500 .

[Anonymous]

Ours went by the date of the sheriffs deed.

[Anonymous]

I read through Fannie Mae's guidelines and it states that they go by the discharge date in this circumstance.  Has anyone had this come up?  

[IOBA]

Maybe showing your lender that the house was INCLUDED in the BK filing and discharged would help them get past this point.

I'm not sure that the lender can report a foreclosure on your CR becuase it was included in the BK and not reaffirmed.  Someone with more knowledge about this should be coming along soon and posting...

[StartingOver10]

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@Anonymous wrote:

I read through Fannie Mae's guidelines and it states that they go by the discharge date in this circumstance.  Has anyone had this come up?  

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Yes. All you have to provide is the Bk petition and discharge showing the mortgage was included in the Bk.  

Have your LO confirm with their underwriting department that the petition and discharge will be sufficient. 

IOBA is right. The notation on your CR can't change once it is IIB.

[Sbrooks1]

I am confused, even with the later date it's still old so why is this a problem!! I

[StartingOver10]

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@Sbrooks1 wrote:
I am confused, even with the later date it's still old so why is this a problem!! I

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It's not a problem, it is an issue on which the underwriter needs details.  Once anyone files Bk and is successfully discharged, expect to have to explain it when obtaining  a mortgage until the Bk notation is no longer on the credit report. I don't think that it is too much to ask when a buyer is asking to borrow several hundred thousand dollars to purchase a property.  It is a matter of showing that the buyer/borrower is able and willing to repay the loan and that the Bk issue is a one-time thing and not a pattern.  

[Sbrooks1]

I get that for sure, I guess I didn't realize a 2005 BR was still showing on a CR

[Anonymous]

None of it is on the credit report.  They pulled some other report.  All is ok now, the underwriter said that it is well past the aging time.  Thanks.