topic What are my options? (If any) in Mortgage Loans

What are my options? (If any)

Anonymous — Thu, 21 Mar 2013 22:45:02 GMT

Good afternoon all.

I declared Chapter 7 in 2008, and did not reaffirm my mortgage. The bank finally got around to taking it in March of 2011.

My fiancee and I are trying to buy a house.

Our middle credit scores are 670 and 726. The mortgage we are looking at is $100k, and we plan on putting 25% down. Our DTI ratio (bottom) will be around 35%.

The foreclosure does not show up on my credit report. I know there is a 3-year wait on BK, but what if the foreclosure was part of the BK?

Is my best bet to find a local, or regional lender that does not sell to the secondary market? Do we have any other option?

Thanks for the help.

Re: What are my options? (If any)

Lel — Thu, 21 Mar 2013 23:47:47 GMT

@Anonymous wrote:
Good afternoon all.

I declared Chapter 7 in 2008, and did not reaffirm my mortgage. The bank finally got around to taking it in March of 2011.

My fiancee and I are trying to buy a house.

Our middle credit scores are 670 and 726. The mortgage we are looking at is $100k, and we plan on putting 25% down. Our DTI ratio (bottom) will be around 35%.

The foreclosure does not show up on my credit report. I know there is a 3-year wait on BK, but what if the foreclosure was part of the BK?

Is my best bet to find a local, or regional lender that does not sell to the secondary market? Do we have any other option?

Thanks for the help.

When was your BK discharged? Do you intend to apply for an FHA loan or a conventional mortgage? The waiting period after foreclosure for a conventional loan is 7 years, unless there were extenuating circumstance (major medical illness, death of a salary earner - we're talking about really serious things, not job loss). For an FHA loan, the waiting period is 3 years after foreclosure, but I believe this can be waived under certain conditions. I don't know if it matters whether or not the foreclosure was part of your bankruptcy; lenders may look at that as a separate event.

Even if the foreclosure does not appear on your credit reports, you are required to disclose it on your mortgage application. It will be discovered during the title search process anyway, and if you fail to report it on your application, it could be considered an attempt at mortgage fraud.

Re: What are my options? (If any)

Anonymous — Fri, 22 Mar 2013 00:13:05 GMT

When was your BK discharged? Feb 2009

Do you intend to apply for an FHA loan or a conventional mortgage? Whatever we can get approved for.

Do you know what the conditions are for FHA? Sounds like FHA would be the way to go.

Re: What are my options? (If any)

Lel — Fri, 22 Mar 2013 06:23:17 GMT

The qualifying criteria for FHA loans vary with the lender, but in general they allow for lower FICO scores and lower down payment amounts. However, there is also a mortgage insurance premium that is added to the cost of the loan. It's probably best for you to find a local FHA lender who can answer your questions for you. Good luck!