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I don't understand. The tenants were late paying y'all so y'all and that made y'all late paying the monthly payment?
Does your current score of 685 have the late payments baked in?
Any late payments before B are not counted? I don't know all the rules on that, but maybe someone smarter can help.
I don't know. Are these late payments more than 30 days past due? How many did you have on this mortgage in the past 12 months?
@Anonymous wrote:
There are 3, maybe 4. Only 30 day lates. No 60 or beyond
Most underwriters will kill an FHA loan if there are any derogatory hits on the credit report after a BK and in your case the lates are on a mortgage which is a double whammy.
Here's what sucks. Your LO should be able to argue that since the mortgage was included in the BK & not re-affirmed, the underwriter has no reason to ask for a history on that account but that doesn't help you with the bigger issue which is this:
You included the mortgage in the BK so FHA guidelines state your eligibility does not start until 3 years AFTER the bank takes back the title to the home. So in your case, the bank has not taken back title yet so you're not eligible yet for an FHA mortgage.
If I were your lender, I would look at having you re-affirm the mortgage but I would make sure that I got a prior approval from my underwriter before having you do that.
@VALoanMaster wrote:
@Anonymous wrote:
There are 3, maybe 4. Only 30 day lates. No 60 or beyondMost underwriters will kill an FHA loan if there are any derogatory hits on the credit report after a BK and in your case the lates are on a mortgage which is a double whammy.
Here's what sucks. Your LO should be able to argue that since the mortgage was included in the BK & not re-affirmed, the underwriter has no reason to ask for a history on that account but that doesn't help you with the bigger issue which is this:
You included the mortgage in the BK so FHA guidelines state your eligibility does not start until 3 years AFTER the bank takes back the title to the home. So in your case, the bank has not taken back title yet so you're not eligible yet for an FHA mortgage.
If I were your lender, I would look at having you re-affirm the mortgage but I would make sure that I got a prior approval from my underwriter before having you do that.
^^^I have to disagree with this statement in red. Not all borrowers that filed Bk and were successfully discharged lost their home. If in fact they did give up their home, then you are right. And, the majority of bk filers did give up their home - but not all of them.
There is a small subset of buyers/borrowers that continued to pay their mortgage, on time every time, and then sold their home at some point after the bk discharge. Some people even had substantial equity in their home and were able to keep the equity after the sale. Those same people were able to get mortgages on a subsequent home purchase, but had to prove the payments were on time. I have had a couple of those buyers and they were successfully approved - but they had to show the settlement statement for the home they sold and the payments being made on time during and after the BK. Your initial statement about lates after a Bk being a deal killer are correct from what I have seen.