FHA requirements for 6 year old Charge off

[Anonymous]

I have a charge off from early 2010 with balance of almost $14,000. There was never any judgement. I tried pleaded my case with the bank who is reporting the charge off. They werent helpful. I cosigned for an ex who had it voluntarily repossessed. Is there any way we would qualify for a FHA loan? The lender we are working with will approve us for a conventional. But the rates would be high. I have another lender who is looking deeper into it. I thought hitting the forums wouldn't hurt.

We are looking at living with parents, taking a high rate conventional loan, or cutting our losses and renting until it falls off my credit report. Thank you for any advice.

[huck1081]

When was the dofd on the loan? And what was the interst rate you were quoted?

[Anonymous]

The DLA on my report says 4/10. I don't know what the interest rate was though. I can check into that tomorrow morning..

[Anonymous]

I'm not a loan officer nor lawyer, but according to my research......  Charge-offs are not necessarily counted for FHA, but they are looked at to determine if a possible lien could be placed on the property if the original creditor were to take you to court.  To determine if they could possibly bring forth a lawsuit, we would need the date of the first delinquency and we need to know what state you live in.

[Anonymous]

It says "Last Late date: 3/10." We live in Oregon where the statue of limitations is 6 years.

[huck1081]

This would be a good question over on the mortgage board. There are some very knowledgeable LO's that frequent that board. 

I'd see if a moderator could move the topic. 

[Anonymous]

I would give it a few months, just to be sure the coast is clear, then I would start requesting Early Exclusions from the CRAs. 

Hopefully, others will chime in and give you some better suggestions, so you don't have to wait until the drop date. 

& yes, the Mortgage board is where you would get the most accurate answer regarding FHA.

[RobertEG]

If the charge-off occured in early 2010, then the date of first delinquency in the chain of delinquency that preceded the charge-off would be around mid-2009.

It should be approaching credit report exclusion within the next few months.

The issue is whether, when you apply for a loan, the prospective creditor will request a listing of all unpaid, delinqent debt, and thus become aware of it by means other than a pull of your credit report.