Background: My husband filed (I didn't) for BK7 early March 2013, which was discharged June 2013. It included all of his debts, including the house... BofA, which received a full claim from FHA at the end of summer, sold the loan to OCWEN right around the same time. No matter... it's not our debt to pay anymore. However, they haven't started foreclosure proceedings yet. I hear this takes, in NY on average, about 2.5 years. What worries me is if it *doesn't.*
What I would like to know is:
1) Which "event" does the FHA Back to Work program count from for the 1 year post-x event? Bankruptcy or foreclosure? (Please don't reply with "I would think..." - I've looked and looked and have many thoughts... I'd like to know, for sure, what they do in this situation.) OR, is it from the latest event? My husband would be easily eligible to apply for the program in March, since that's when he filed for BK7 last year... my problem is not knowing if, considering we'll likely be here for 2.5ish years still with how slowly proceedings go, FHA will say that since the house is not foreclosed on yet, we'll have to wait a year from THEN. And if that's what will happen, that's okay... we'll probably have the savings to just build in cash by then. I just want to know what their requirements/priorities are when there are two such events.
and 2) Would our CRs support an FHA - Back to Work mortgage approval in April, if they accept one year post-BK7?
Husband: Debts IIB totaled $146K, including the house. All but the house were current at time of filing.
(current)
Experian: 637. Transunion: 650. Equifax: 667.
-Income of $50K, with history of 15 months. (Unemployed previously for 1.5 years from similar-paying job.)
-Auto loan of 1 year with $10K balance. High balance was $13,500. (Loan obtained between 341 mtg. - next day - and discharge, as the lender had been permitted to take the car back and we needed another.)
-Cap One CC of 7 months with CL of $300. Card has carried a small balance for rebuilding. Less than 10%.
Me:
Experian: 720. Transunion: 757. Equifax: 734
-Sporadic income... basically, when I want more money, I take on jobs. I'm a jack of all trades, from construction to accounting to graphic design and tutoring. I'd say $20K, in total.
(I'll be working full-time this fall, when our 3 children will be old enough to stay home alone for the 1.5 hours after school, but that's irrelevant. I won't be including my income in a home loan, just wondering if it would help, if Husband needed it only, to lend my credit. The amount we'd have it for is well within his income alone.)
-USAA CC of 9 months with CL of $1000 (due for an increase.) Util. below 9%.
-Walmart CC of 9 months with CL of $1100. $0 balance.
-Bridgestone (had ONE flat 2 weeks before Christmas and wanted to float the expense of 4 new tires - NYS requires all 4 be replaced when 4WD or AWD) with CL of $1200. $0 balance.
All accounts are current and there are no public records except for the BK7 on Husband's CR. Average account age for mine is 8 years. Average account age for DH is 7 7 years. All 5+ year reportings show as current, closed and mine have always been current. We have roughly $10K in savings. The 3.5% down and closing costs would be somewhere around $3K. (Cheap COL area and would be using a small, cheap house for its land, foundation, well/pump, transformer/electricity run, which would cost that much to accomplish, and storage barn... essentially to tear down the house and build it back up. Post-and-beam, strawbale, 1.5 stories. 3BD, 1.5BA. Plans are done. Most of the materials are in possession. We have experience in building.)
Basically, I want to know if we can move on this property (no one's in a rush for the property but us lol) over the spring/summer or not. Because if not, we'll just save and do it later, on my parents' land. This one is more attractive because it's adjacent to theirs and we'd be able to move near them and settle in far more quickly.
