New Mortgage Loan for Home Owner

[Anonymous]

At a glance...I presently own a home that has equity.  After finally recieving a modification, Chase Bank did not reduce the rate of 6.275%.  I now pay $2700 per month rather than my initial mortgage payment of $1680.  I want to move from the east coast to the south (home).  

1.    After cut-backs at my company, I changed jobs with a lower salary.  I called Chase to ask for modification in 2009  and was denied.  No late payments in 20 years and perfect credit.  I was told I had to DEFAULT before a modification would be considered.  WHAT????

2.   Hung on for  9 months and then finally, I could not afford the payment.
3.   I lost my joby 
4.   House went in to foreclosure
5.   I personally filed for bankruptcy to save the house from selling 10/2010
6.   I had 3 lines of credit all over 15K, 2 AMX cards and one retailer all went into default and charged off in 2010
7.   Bankruptcy was dismissed in 1/2011.  
8.   Stayed in my house and finally given a mod in 7/2014
9.   Mortgage is now difficult after 6.375% stayed in place.
10. Meanwhile, I bought a rehab house for pennies and sold it for a significant amount.  
11. Now I want to purchase a house in another state to get rid of this present mortgage.  
12. I have 20% down, my FICO score is 609.  I have one active credit card (Capital One) in good standing, never late.  Credit limit of 2500.00, I own 700.  No other bills.  
13. Mortgage of $2700 has been paid on time each month.
14. The house that I want to purchase ($269,900) is less than I owe on my present home (340,000).  This new payment would drop the monthly payment significantly.  
15.  Regular credit scores are 650-644-650
16.  Present credit report still reflects charge-offs, 3 over 15K and the other 3 between $299.00 (which I'm paying this month) and then 1k to 1400.00 on the last 2 that have been charged off as well.
17.  And lastly, the house that I want to purchase is a FHA FORECLOSURE (Keep in mind, I have 20% down).  The house is really in very decent condition.  The house has been under contract 5 times in the last 3 months.  I believe the stipulations must be very high.  I know this is not enough info for anyone to draw a conclusion, but I just want to have your thoughts on this interesting scenario.  I've read all of the other comments, but no one quite had my situation.  I figured if I can afford to pay $2700.00 per month, anything less would be a cakewalk.  NOT HAPPY WITH CHASE!!!!  Greedy, greedy, greedy!!!  And one last thing,  I have a renter for my house that I presently live in.  I would make $300 over the asking rent.  

Considering the picture above, do you think it is possible to get a mortgage loan?  Also, I would be transferring my job.  Thank you so much for your immediate response. The house that I want came back on the market yesterday with a drop in price.  Time is of the essence!

Thanks again!  

[ShanetheMortgageMan]

After a loan mod usually you need to wait 2 years, there is no written rule from Fannie or Freddie on this, but I've searched everywhere and I can't find a lender who is OK with less than 2 years (other than sub-prime lenders).  It may be possible, but seems tough to find (and if they aren't reporting you current, then that is another issue).

Have the charge-offs gone to collections or are they still just charge-offs?

What do you mean by your myFICO scores (#12) vs. "regular" scores (#15)?

I think it'll be very tough with Fannie or Freddie conventional financing, tough for FHA financing, but sub-prime may work out... then you could work on credit and time refinancing into conventional or FHA at the 2-year mark of the loan mod.

[Anonymous]

Thank you for responding!  I have to wait 2 years to get a new mortgage loan, or 2 years to sell my house?  They are indeed reporting me current at Equifax, Experian and Transunion.  I was speaking of these 3 agencies when I wrote 650, 644 and 650.

The Fico score was 609.

The charge-offs went to collections years ago and remain now as charge-offs.  No one has called fro collections in a long while.   

Wait, maybe I confused you!  I live on the East coast in the house that received the modification and I'm looking to move to/buy a house down South.  So even with 20% down on $269k, that would not be considered?  My housepresent home has equity.  Probably around $60k or more.  Time is just not on my side.  Seven families went to see the house just yesterday after the price drop!  REALLY???

[Anonymous]

Please excuse the boo-boo's!  I'm was typing too fast and with one finger!

[Anonymous]

Well, I guess it's safe to assume that is the end of the conversation with Shane!  Anyone else had a similar experience?  

[ShanetheMortgageMan]

2 years to get a new mortgage loan, unless you go with sub-prime financing.