@Anonymous wrote:
Good afternoon all.
I declared Chapter 7 in 2008, and did not reaffirm my mortgage. The bank finally got around to taking it in March of 2011.
My fiancee and I are trying to buy a house.
Our middle credit scores are 670 and 726. The mortgage we are looking at is $100k, and we plan on putting 25% down. Our DTI ratio (bottom) will be around 35%.
The foreclosure does not show up on my credit report. I know there is a 3-year wait on BK, but what if the foreclosure was part of the BK?
Is my best bet to find a local, or regional lender that does not sell to the secondary market? Do we have any other option?
Thanks for the help.
When was your BK discharged? Do you intend to apply for an FHA loan or a conventional mortgage? The waiting period after foreclosure for a conventional loan is 7 years, unless there were extenuating circumstance (major medical illness, death of a salary earner - we're talking about really serious things, not job loss). For an FHA loan, the waiting period is 3 years after foreclosure, but I believe this can be waived under certain conditions. I don't know if it matters whether or not the foreclosure was part of your bankruptcy; lenders may look at that as a separate event.
Even if the foreclosure does not appear on your credit reports, you are required to disclose it on your mortgage application. It will be discovered during the title search process anyway, and if you fail to report it on your application, it could be considered an attempt at mortgage fraud.
