Mortgage after foreclosure included in bankruptcy

[Anonymous]

Im losing my mind right now. I just spoke to a loan officer and applied to preapproval. My credit is fine, but she is saying that I have to wait 7 years from the date of my foreclosure. I thought that if my foreclosure was included in my bankruptcy that the 4 year bankruptcy wait time applies? Am I wrong? She is sending my file to an underwriter to get their answer. Help!

[NC_Mtg_Loaner]

What type of loan are you applying for?

Conventional, FHA, VA, USDA?

Bankruptcy and foreclosures included in BK can be tricky when determining the wait period for mortgage loans afterwards. 

[Anonymous]

We had a chapter 7. We included our FHA loan in the bankruptcy. We obtained a USDA loan 3 years after the deed transferred from our name at the sheriffs sale.

[Anonymous]

I’m trying to do conventional because of high student loan debt, so FHA won’t work for me with their 1% guideline with student loans. Thanks for your input though!

[Anonymous]

They told us the same thing. Even though the house was in the bankruptcy we stayed for 2 years and then gave it back so we are not able to go conventional only FHA or wait for the 7 years to be over.

[Anonymous]

That doesn’t make any sense? From all that i’ve read it should be the 4 years for conventional. I’m waiting to hear what the underwriter says. So are they telling you to wait 7 years from the time the title was deeded out of your name?

[Anonymous]

Conventional due to high student loans.

[picjmp]

See question #5. Straight from fannie mae website.

https://www.fanniemae.com/content/faq/underwriting-faqs.pdf

[VALoanMaster]

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@Anonymouswrote:
That doesn’t make any sense? From all that i’ve read it should be the 4 years for conventional. I’m waiting to hear what the underwriter says. So are they telling you to wait 7 years from the time the title was deeded out of your name?

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For Fannie Mae, it's 4 years from the discharge date as long as you did not re-affirm the mortgage. Anyone who tells you anything different either doesn't know the guidelines or they have a more restrictive overlay.

The other consideration here is if the lender tried to go Freddie Mac due to the student loans, then 7 years is correct.

[Anonymous]

I just got my preapproval! The loan originator sent my docs to the underwriter and confirmed that it was a go with a conventional loan.