Preapproval for mortgage

Rubensmaddder · ‎09-05-2015

Hello all,

I am looking for some insight towards my situation. I am currently trying to get preapproved for a mortgage, and I got denied by my LO due to a "preforeclosure" that occured starting 2/2014. It was due to my not being able to keep up with payments for a heloc, which I subsequently received a letter of default, but paid all fees and got it up to date and reinstated 04/2014. My 1st mortgage was current for the past 24 months prior and even after the LOD for the heloc. Do I have to wait for the mandatory waiting periods for application of a Fannie Mae or FHA loans? All your help is greatly appreciated. I am quite confused and somehwhat hopeful that my situation is a nonqualifying for the mandatory wait.

StartingOver10 · ‎09-07-2015

Were you 120 days or more late with the HELOC at the time of pre-foreclosure?

Rubensmaddder · ‎09-07-2015

Yes. It was more than 120 days. Way before the 120 day mark I tried to make the account current however, the HELOC originator (BofA) was making it difficult/impossible.

Anonymous · ‎01-12-2016

My husband and I were just denied for a similar reason. He had a deed in lieu from 8/2014 however, the bank did not sell and close on the property until 8/2015 at wihich time they removed his name from the deed. We now have to wait until 9/2018 (three years) before we can be considered for FHA... we were devasted because not only were we preapproved, we'd found a home and were under contact and opened escrow before the underwriters came to us. We disclosed all of our information when we went for the preapproval however the LO failed to explain anything about deed transfer dates, we had no clue!!! we were never supposed to be preapproved. Now we are out of the fees we paid for inspection, attorney, apprasial, and title search....talk about depressing punch to the gut. We lost our dream home as we had to cancel the contract weeks before closing.

ezdriver · ‎01-12-2016

@Anonymous wrote:
My husband and I were just denied for a similar reason. He had a deed in lieu from 8/2014 however, the bank did not sell and close on the property until 8/2015 at wihich time they removed his name from the deed. We now have to wait until 9/2018 (three years) before we can be considered for FHA... we were devasted because not only were we preapproved, we'd found a home and were under contact and opened escrow before the underwriters came to us. We disclosed all of our information when we went for the preapproval however the LO failed to explain anything about deed transfer dates, we had no clue!!! we were never supposed to be preapproved. Now we are out of the fees we paid for inspection, attorney, apprasial, and title search....talk about depressing punch to the gut. We lost our dream home as we had to cancel the contract weeks before closing.

Ouch! I'm so sorry for you guys and it all happened because of a lazy and/or incompetent loan officer. This is why a preapproval without an underwriter's review is pretty useless and many case, like yours, is harmful to applicants.

StartingOver10 · ‎01-12-2016

@Rubensmaddder wrote:
Yes. It was more than 120 days. Way before the 120 day mark I tried to make the account current however, the HELOC originator (BofA) was making it difficult/impossible.

120 days is considered = to a foreclosure and the foreclosure waiting periods are followed.