FHA LOAN Foreclosure-09-One Charge off Second Mortgage.

[Deepauk]

Let me reiterate my situation, where foreclosure occured in Feb 2009 since I had two loans

A) AHM ( American Home mortgage )  primary lender  who filed bankruptcy and they could not modify my loan and the house prices is underwater.

b) Second Mortgage - Citi mortgage - 86,000 - They Charged off ( they did not get a dime from the foreclosure).

I have a 'charged off' status on my CR but all other accts are paid off with a balance of $ 199.00 I

My salary is $ 95,000..

After three year waiting period - Will i be eligible for FHA loan in Mar 2012.

Will there be any rejection due to the charge off..Or can i keep my wife as a primiary applicant and me as a secondary applicant...

 Please advise..

Thanks,
DC

[BrianB_The_Loan_Professor]

 You had the home foreclosed by the second? The house sold, the first was paid but the second was left with nothing?

The second then listed it as charged off? If that is the case and I understand you correctly you should be fine three years from when the house sold and was transferred out of your name. You may have to explain that the charge off was actually a foreclosure if the UW doesnt make sense of it on their own

B

[Deepauk]

Yes Brian..

I gave lot of details in bits and piece which may have confused you..

Yes, the house was foreclosed by the First mortgage. Second mortgage did not get anything and they charged off my account.

Per your reply, I will be eligible for a loan after three years without any prejudice whatsoever if i  have understood correctly.. Thanks a lot.

One last thing, charge off is shown in my CR. Is that okay..

Deepak