Question about balance transfer for DTI

[Anonymous]

Awesome! Thank you!

[Sbrooks1]

😲

[Anonymous]

I was finally able to get my mortgage scores: 693, 675, 650 so no issue there. Come to find out because I had a short sale I have to wait at least another 1.5 to 2.5 years. I had no idea and I'm so bummed. 😕 I've been busting my butt to get ready to buy a house. He said otherwise I would have been able to do usda.

[StartingOver10]

When did the deed pass to the new buyer in the short sale? (date)

What type of loan did you have before, VA, USDA, FHA?

[Anonymous]

I don't think it was any of them. It was an ARM back when they were handing them out like candy and I didn't know any better. It ended up going up to 11.625 so I filed for ch7 and surrendered the property in 2011. The bk discharged and the bank never foreclosed. It sat in my name until last year when I got in touch with them and they agreed to a short sale and I finally got rid of it.

Sorry to ramble but all that to say it finally sold in October 2016. I wish I had known, I could have sold it in 2011

[ShanetheMortgageMan]

If the mortgage was discharged in the bankruptcy and you didn't reaffirm the debt, then if the BK discharge (assuming it's a Ch 7) was over 4 years ago, then you would be eligible now with Fannie Mae financing and 5% down (perhaps even 3%) - as it goes by the BK discharge date and not the foreclosure/short sale date.  See the thread here.  While that thead only discusses mortgages discharged in bankruptcy that were later foreclosed on, it also applies to mortgages discharged in bankruptcy that later short sold (as I've gotten those done).

[Anonymous]

Thank you Shane! This is my situation exactly! The ch 7 discharged in Aug of 2011. How would I find out more about going this route? Are there only certain lenders that do Fannie Mae?

[ShanetheMortgageMan]

You are welcome.  Most lenders offer Fannie Mae programs, but just a small percentage of loan officers are aware of that guideline.  What is even a smaller percentage, are the underwriters who know that it also applies to short sales & deed-in-lieu of foreclosures (since the guidelines don't specifically say).  I had to convince our underwriter to call Fannie Mae directly to confirm it also applied to short sales. 

[Anonymous]

Shane, do you handle loans in Georgia? If so can you pm me your info?