fha mortgage after chapter 7 and foreclosure

[amzmom]

I separated from my ex in 2010.  He wanted to keep the house we jointly owned. I signed over the deed to him in Jan 2011 so he could pursue modification/refinance. Divorce final in 2012. But he never refinanced. Because I was still liable for mortgage and to clear remaining marital debt, I filed Chapter 7 which was discharged in June 2013. He remained in house without refinancing, until it finally was foreclosed on summer 2015. Now I am past the fha three year waiting period, have reestablished credit, and was preapproved for loan. Now there seems to be a big issue because he never refinanced and my name remained on the mortgage even though I had quit claimed the deed to him and filed BK which included the mortgage. So the question is, does my seasoning period start at bk discharge, when the quit claim was signed, or when the foreclosure took place? The old mortgage was FHA and apparently that makes a difference. 

[DallasLoanGuy]

short answer" clock starts when property title transfers out of your name.

A case like this might get an exception with the right lender. Just be up front about it when you call lenders. 

[amzmom]

so does the execution of a quit claim deed transfer title out of my name? If so, I'm not sure what the problem is with my underwriter, since that was done over 5 years ago. Additinally the waiting period after bk has also passed. 

[DallasLoanGuy]

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@amzmom wrote:

so does the execution of a quit claim deed transfer title out of my name? If so, I'm not sure what the problem is with my underwriter, since that was done over 5 years ago. Additinally the waiting period after bk has also passed. 

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was the quit claim recorded?

and since that date has all of your housing(rent) been 100% paid on time?

[amzmom]

quit claim was duly recorded and my lender has a copy. and yes I have proof that i have paid my rent on time each and every month since aug 2010.

[DallasLoanGuy]

the loan officer that pre-approved you needs to send your file to underwriting NOW and make sure they can figure out how to approve.

if not, try another lender.

i have never tried to get a deal like this done so i dont know how they would respond. but there is bound to be a loan officer out there that can get this done with an exception.

[StartingOver10]

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@DallasLoanGuy wrote:

the loan officer that pre-approved you needs to send your file to underwriting NOW and make sure they can figure out how to approve.

if not, try another lender.

i have never tried to get a deal like this done so i dont know how they would respond. but there is bound to be a loan officer out there that can get this done with an exception.

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I have a loan officer that does these deals.

The items required are the following:

1) Bk petition and discharge showing the mortgage was included

2) Deed transfer

3) Divorce decree

4) Letter of Explanation - simple and short, similar to the post you made about it

pm me if you want his name if your LO can't get it done

[Anonymous]

FHA- default-= Caivrs and you will need to go about getting that cleared. The government won't insure you for any loan until that is clear.

[VALoanMaster]

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@amzmom wrote:

I separated from my ex in 2010.  He wanted to keep the house we jointly owned. I signed over the deed to him in Jan 2011 so he could pursue modification/refinance. Divorce final in 2012. But he never refinanced. Because I was still liable for mortgage and to clear remaining marital debt, I filed Chapter 7 which was discharged in June 2013. He remained in house without refinancing, until it finally was foreclosed on summer 2015. Now I am past the fha three year waiting period, have reestablished credit, and was preapproved for loan. Now there seems to be a big issue because he never refinanced and my name remained on the mortgage even though I had quit claimed the deed to him and filed BK which included the mortgage. So the question is, does my seasoning period start at bk discharge, when the quit claim was signed, or when the foreclosure took place? The old mortgage was FHA and apparently that makes a difference. 

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 Hi Amzmom,

This is really not that big of a deal to get done. You qualify under the FHA guideliens for an exception to the standard requirements which would require you to wait 3 years from when the home was actually foreclosed on to be eligible. The main thing is whether or not your current lender is willing to make this type of exception. Like Firemedii said, since the previous mortgage was FHA, you'll have to get your info suppressed in the CAIVRS system.

I just helped a client get his info suppressed in CAIVRS & he's in a similar situation to you.