Mortgage while in foreclosure after BK7

[Anonymous]

I was discharged ch 7 back in Oct 2012, including the house. Wife is not on note and did not file BK, but is on the deed. We still live in the house. It is in foreclosure. We want to walk away soon. 

What are the chances of getting a mortgage in this situation? Either a VA loan (I am a Vet) or FHA 203k loan. Possibly buy a fixer upper, stay in current house till repairs are made. Is this possible?

Never late on any payment in the 4 years since BK. My score around 670 wife probably in the 700s never late on anything. DTI very good. 

[kc0039]

VA waiting times are 2 years after foreclosure completion date. FHA is 3 years after completion date same as USDA. If your foreclosure isn't completed yet, you'll have to wait. Maybe some lenders will make an exception and that's when you're dialing for dollars

[ShanetheMortgageMan]

With VA I've found several lenders who will go by the BK discharge date and waiting period, so you don't get "double hit" by having to wait 2 years after a Ch 7 BK discharge and also waiting 2 years after the foreclosure.  Our own underwriters have confirmed that they'd just need 2 years after the BK discharge as well.  The catch is the mortgage had to have been discharged in the BK and not re-affirmed.  FHA will go by the longer waiting period though, which would be 3-years from a foreclosure that has yet to occur.  Another option for you would be conventional financing, which again when a mortgage was discharged in BK and later foreclosed, then just a 4-year waiting period from the Ch 7 BK discharge is needed (which you'd already be at).  So it looks like you'd have VA or conventional to choose from.  Keep in mind though that if the mortgage being foreclosed on is a VA loan, you'll lose some of your entitlement which could impact your ability to obtain a new VA loan.

[Anonymous]

Thanks, this is good to know. The VA way is a no brainer for me. No money down, no PMI. Mortgage being foreclosed is not a VA loan.

[ShanetheMortgageMan]

Then sounds like that'd be an option once the foreclosure concludes.

[VALoanMaster]

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@Anonymous wrote:

Thanks, this is good to know. The VA way is a no brainer for me. No money down, no PMI. Mortgage being foreclosed is not a VA loan.

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What type of mortgage is being foreclosed on? If it's FHA you're going to run into a problem with CAIVRS.

[Anonymous]

So the foreclosure has to conclude first? Won't get approved before that, while in foreclosure? Was hoping not to rent in between.

It's not an FHA. Fanni Mae

[VALoanMaster]

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@Anonymous wrote:
So the foreclosure has to conclude first? Won't get approved before that, while in foreclosure? Was hoping not to rent in between.

It's not an FHA. Fanni Mae

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No, VA does not require the foreclosure to be done before you can buy again. 

[Anonymous]

That's great to know. Thanks.

[VALoanMaster]

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@Anonymous wrote:
That's great to know. Thanks.

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You're welcome.