I recently pulled my credit reports and decided to apply for a home loan. I knew I was going for an FHA because of a couple of 30 day lates I had in the last 4 years -- but more than 2 years ago. My scores were 611, 640 and 658. The reports I pulled had items that I expected. There were a couple of collection items on which I decided to try the PFD routes. I got 3 collections off my report and it raised my scores to a middle of 660. My lender said I would be better with a conventional with those numbers. I was happy about that. However, when my lender pulled my report, there is note of a "foreclosure started" dated May 2010 on a loan I cosigned with my mother over 20 years ago. I found out the mortgage delinquency 30 days too late... my mother's loan had reached the 120 day mark and although there was no foreclosure and we were able to get her loan current, the reporting agencies still consider the delinquency a foreclosure.
From speaking to my broker and reading these forums, it is expected I have a "3 year waiting period", but in my situation, the home was not sold or foreclosed. Do I need to wait from the date of the first delinquency or do I need to wait from the date the default was cured?
PS. As a note to those considering co-signing anyone's loan -- DON'T DO IT. My mother just needed to refinance to get her house in order to rent it out. Once she had the rental income, she was very well able to assume the loan or refinance on her own. That was 20 years ago and I have yet to persuade her to refinance to take me off the loan. The sucky part is that the mortgage company has no obligation to notify the co-signer when a loan is delinquent or in default. I had NO idea what was going on until it was too late.
