Looking for "flexible" lender for FHA loan

[Anonymous]

Hey All,

I have posted my LONG description of my situation earlier but will very quickly summarize:

1.) Sept 2009 - Lost job after months of searching had to move to another state to find employment.

2.) Nov 2009 - Stopped paying mortgage at lenders advisement due to not being able to afford the mortgage payments.

3.) Nov 2009 - Hired a real estate agent to handle marketing home for short sale.

4.) Nov 2009 - Letter of hardship sent to mortgage company outlining the issues mentioned above.

5.) Jan 2010 - Short sale application submitted for 3/4 the owed amount, rejected.

6.) Mar 2010 - Mortgage charged off from bank after 120 late.

7.) May 2015 - Property sold at sherriff sale by county for back property taxes.

Since the hardships in the past I have rehabed my credit and have 0 late payments and low DTI ratios.  My currenty Fico score is a 740. 

I have started the FHA mortgage process with a new home builder in the area who I have made aware of my situation up front.  They believed that since this wasn't technically considered a foreclosure that they will be able to complete the FHA loan.

I have had my credit reports come back favorably, they have ran multiple passes of automated underwriting which have all came back favorable.  

I was pre-approved with conditions Dec 3rd and set to close Mar 4.  Currently I am being asked for a copy of the warranty deed by the underwriter as a final condition.  I don't have this as it was a sherriff sale ( I also am not quite sure where to procure it from).  The mortgage company has their title department tracking this down.

I am very concerned that this may turn into a rejected situation due to the timing at which the property was deeded out of my name.  

I have heard in rare cases that some lenders have been able to get around some of the FHA guidelines with extenuating circumstances.  I was wondering if anyone could put me in contact with a mortgage company that they have had/ heard of having good luck in this department, in case things fall through here.

[DallasLoanGuy]

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@Anonymous wrote:

I have heard in rare cases that some lenders have been able to get around some of the FHA guidelines with extenuating circumstances.  I was wondering if anyone could put me in contact with a mortgage company that they have had/ heard of having good luck in this department, in case things fall through here.

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some lenders can underwrite to the 'fha back to work' guidelines.

basically, if you are out of work for 6+ months and that results in a 20% reduction of household income...... then they will consider you for a mortgage after 1yr.... not the usual 3yr mark.

unfortunately, most people would be better off just stopping paying and renting the thing out for whatever they can get.....

it takes a long time to foreclose.... and that sucks. 

[StartingOver10]

OP, normally you can download a copy of the deed going back to the bank.  It might be called something else other than a warranty deed.  Look up the property records on your county property appraisers website and look for the date of transfer (sherrifs sale).  That is what the lender is looking for - you can have your Realtor or your LO help you.

Note:  this might not be possible if you are located in one of the non-disclosure states (I don't know how those states work): Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri (some counties), Montana, New Mexico, North Dakota, Texas, Utah, and Wyoming.

[Anonymous]

Hi StartingOver10,

I was able to find the deed information on the counties accessors website which I provided to them.  Apparently they are wanting to find an actual copy of the deed instead of just the deed information found on the internet.  I doubts that they will be have any issues procuring a real copy, however the question is more the date that the title was deeded out of my name.  Since this wasn't officially considered a foreclosure, they are unsure what the underwriter will consider in terms of any time constraints written within FHA guidelines.

Cheers,

[Anonymous]

Hi DallasLoanGuy,

Yea this has been a really crappy situation and I just can't seem to stop getting penalized.  I really wish at this point that I would have just decided to file bankruptcy / bank actually foreclosed.  My situation would most likely be the same for the most part in terms of rebuilding by this point (maybe not though).  

[Anonymous]

No one has any leads on lenders with better experience of grey area backgrounds for FHA loans?

[Anonymous]

Not sure that FHA applies but I used a portfolio lender to do a 5% down payment in a situation like yours, except I have an unpaid 2nd from the short sale that has now gone to some collection outfit.  So it shows on one of my CRA's.  They don't sell their loans so they approved me however, we where denied by the PMI company and had to get the seller to take back a 15% second.  

If you can find one in your area I would try.  The one I am working with is a local savings & loan who can do a lot of things that folks who sell their loans can't and won't do.

[DallasLoanGuy]

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@Anonymous wrote:

No one has any leads on lenders with better experience of grey area backgrounds for FHA loans?

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this isnt a gray area.

clock starts ticking when property title transfers

[DallasLoanGuy]

some lenders have access to subprime loans.  large down payment and they will do it even if the foreclosure is yesterday