Yesterday, I closed on a 4500 sq ft home for $139k from HUD. I give God the Praise, myFICO, and a good loan officer. One bank, Regions Mortgage, pre-approved me in Sept. I made a contract on a HUD house in Nov. After the first lender had my contract for 2 months, I was denied. Immediately, I contacted to another bank, Wells Fargo. I was approved in 7 days after going through the Exception Dept, first due to a Charge Off that is owned by Wachovia (Wells Fargo merged with Wachovia). Also, I had 1 unpaid judgement that I am in payments since Sept. 2009. I had a foreclosure in Nov. 2006.
With all this, my rate is 5.25%, 30 year fixed FHA!! It took me 6 months to get a house but it happened!! I did not have to pay the Charge Off before/after closing but now I am going to pay them since they made good on my loan. I was told what helped the process a lot was that I knew my credit file and how to obtain information needed within minutes. I gave this forum praise for this because before working on my credit a couple of years ago, I did not know much about the process.
To those of you that have given up, DON'T. Know your credit file front and back and don't be afraid to let the lender know upfront what has been happening in your life. If you have any questions, let me know.
BTW, I started with NACA when I was in another state. I did not like the process and back and forth. I came out of my pocket for closing $4600 because I overbid on the house by $4099 and had to pay the difference. If I had not overbid, it would have been $500. But it is worth it!!!