Obtaining mortgage while going through foreclosure

[Anonymous]

We've been in foreclosure now for almost 5 years. I fully expect the process to continue for several more years.

Mortgage trade line does not appear on credit reports (and cannot, by agreement).

I have FAKO scores of 781 (TU) and 768 (EQ). I have income and time at employment to support a mortgage. We have no CC debt, no BK's, 2 car loans totaling $5K, and about $8K in student loans.

I have one charge off of about 7.5K that will drop off in the next few months.

Just curious about how lenders will look at my credit profile or question why there is no mortgage data on the CR. I want to move eventually, as I'd rather put money saved into downpayment rather than deferred maintenance, upkeep and remodeling, etc. I also want to get away as far as possible from the current servicer. Our loan was owned by FHLMC, but was sold to a private equity firm almost 2 years ago.

[StartingOver10]

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@Anonymous wrote:

We've been in foreclosure now for almost 5 years. I fully expect the process to continue for several more years.

Mortgage trade line does not appear on credit reports (and cannot, by agreement).

I have FAKO scores of 781 (TU) and 768 (EQ). I have income and time at employment to support a mortgage. We have no CC debt, no BK's, 2 car loans totaling $5K, and about $8K in student loans.

I have one charge off of about 7.5K that will drop off in the next few months.

Just curious about how lenders will look at my credit profile or question why there is no mortgage data on the CR. I want to move eventually, as I'd rather put money saved into downpayment rather than deferred maintenance, upkeep and remodeling, etc. I also want to get away as far as possible from the current servicer. Our loan was owned by FHLMC, but was sold to a private equity firm almost 2 years ago.

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When you fill out a 1003 mortgage application, you have to disclose all of your debt including your current unpaid mortgage. The lender checks other databases in addition to your credit report including your public records which will show the ongoing foreclosure you are in now. There are other records that the lender checks as well. You give them permission to check all of those records when you make a mortgage application. Look up a 1003 and read it so you know what is expected. 

To not disclose the debt is mortgage fraud and will create huge issues for you personally as well as an automatic denial from the lender.

You can get a mortgage even one day out of foreclosure (now) but the terms aren't good.   It is essentially handled as a collateral type loan (Low LTV and high-interest rate).

To get to "regular" mortgage rates and terms you would need to fit into the lender's guidelines for either FHA or Conventional type mortgage. Those guidelines include a time period from the date the property deed transferred from you back to the bank.  That time period varies depending upon the type of mortgage you seek. 

[Anonymous]

So I looked at the 1003. There is information that I would have to obtain from the lender, for example, amount remaining. 

The problem is that the lender doesn't actually know what we owe. They haven't sent us a billing statement in months and all of their number are messed up 10 ways to Tuesday.

I hate to kick this can down the road to federal court, but that may be my only option at this point.

I also have to point out that foreclosure proceedings are not an admission of guilt, nor is it a judgment against me. I just don't know how that could be used against me at this point in time. I guess for now there's a roof over our head, so we have at least that going for us. 

Thank you for the information.

[DallasLoanGuy]

you are still in the house?  not making payments for 5yrs?

[Anonymous]

Unapologetically, yes, for several reasons.

For starters, we brought our case to federal court, and made some really great case law there. We've also successfully opposed 2 motions for summary judgment.

Lastly, we showed that the mortgage servicer was acting in bad faith and committed extortion and fraud to both us and the court. In my state, a mortgage servicer is required to show to the court the steps that were taken to comply with loss mitigation available on the loan. They submitted an affidavit, which we were able to counter with actual documentation disproving everything they said.

We've handled the entire foreclosure by ourselves, with the exception of the federal court case.

The court is entertaining our motion to dismiss the proceedings because of the bad faith on the part of the servicer, which is actually allowed in my state. The hearing date is mid-January. 

Yes, we've been offered numerous modifications, and 5 figures to leave our home, but the problem now is that a modification isn't affordable, even if the numbers are right. Since we are not allowed to put any money down to pay down debt, our last modification was over 75% of our monthly income. How is that sustainable?

I'm not even kidding when I say that they have no idea how to respond to a Request for Information, debt validation request, how to investigate a credit dispute or even how to accurately report. Plus, every modification they've offered us is off by over $20K. And no, that's not fees, etc. 

I'm just getting tired. Want things to end at some point.

[DallasLoanGuy]

with this looming.... the uw will want to verify a willingness and capacity to make housing payments. 

so this needs to get wrapped up before you can get a mortgage. imo