Foreclosure Help!!!

I have heard mortgage lenders say that just seeing a foreclosure is an instant denial for getting a new loan.

If you can look for actual errors in the reporting, and each time you dispute an error ask for deletion.

If the item does get deleted, technically a credit can catch the missing item and re-add it onto the credit report.

If it gets reinserted, then the Credit Reporting Agency has 5 business days to notify you of reinsertion. If later you see it added back, and you know you had not received notification - you can write back to the Credit Reporting Agency pointing out not having received notice, this is grounds to request that the item be removed for good, and no longer be eligible to be re-added back to the credit report.

 

Balance is a good one to dispute, some times companies report 1 time just to add the tradeline, and after that the balance changed but they never updated again. So it is possible that the balance is incorrect.

Look at the dates, determine when you know you first started missing payments and never caught back up to current again, and count 180 days forward to figure the actual charge off date.

Ask the credit reporting agency when the account is due to expire, then count 7 years backwards to see if it matches the charge off date.

If you see that the dates do not match you can dispute with the credit reporting agency that you believe the creditor re-aged the account, and that you want it deleted. It may help if you have old credit reports, bank statements, or collection letters helping pin point the key dates you need.

 

However, it will still show on a full factual report, which can be pulled for a mortgage in excess of $150K.

I'm not trying to be mean here, but you've had a foreclosure. Are you sure you can handle buying a house? Do you have a big down payment? Do you have at least six month's worth of expenses in a bank or money market account? Can you handle large unexpected repairs? What about the 40% property tax increase that has happened some places?

 

Hedwig is correct about the full reports still showing the foreclosure even if you get it off of the short report.

When ever a consumer applies for:

Insurance exceeding $150,000
Mortgage exceeding $150,000
Employment exceeding $75,000

The loan amount you are applying for will set you over the mark for the lender to request a full credit history on you from the credit reporting agency. These reports go all the way back to when you first started using credit. There is no 7 year cut off for accounts on these reports.

There might be a difference between expired off and deleted off, I am not sure. I am thinking the expired off information will show back up, but it is possible that the deleted items might not show on the extended reports. Even though I briefly worked for a credit bureau - that I think is one of them well hidden secrets they may just take to the grave with them.

You can still try, just see what happens.

 

While the credit reports may or may not show the foreclosure the court records will show it forever. Most lenders normally check both sources of information. They check the public records at the court house looking for any possible judgments against you and can therefore easily find the old foreclosure even though it don't show up on the credit reports. That's why it is so important for people to get a mortgage fraud audit done as soon as possible after purchasing a home and even more important when facing a foreclosure action. A good fraud audit will usually consist of somewhere around a hundred pages of information. Most of that will be copies of what the lender provided to the borrower at the time of closure. Then the auditor will have anywhere from maybe 10 to 25 pages consisting of their findings, references to court cases or statutory law backing up their findings.

Many so called fraud auditors merely make accusatory statements but give no references to back up their allegations. If they do that then the homeowner would still have to hire an attorney who will charge a great deal of money to do the research necessary to establish causes of action which could be used against the lender and the appraiser or whoever it was that violated the law.

I have quite a few fraud audits from various auditors. Most of them are frauds in and of themselves because they present no real findings of fact or conclusions of law. Fraud auditors normally charge anywhere from $500 to as much as $2500 for their work but if their so called findings do not contain references to law and court cases to back up what they are saying then it will probably cost at least that much or more to get an attorney to take the case and make legal sense out of what the fraud auditor has reported. Anybody can make claims that somebody did something wrong but if there is no reference to findings of fact and conclusions of law then the audit is in itself a fraud upon the homeowner.

We have a lady here in OKC who claims to be both a certified fraud examiner and an expert witness. Yes, she is a certified fraud examiner but who certified her? Come to find out about it, she is president of the club that certified her. (LOL).

Then her claim that she is an expert witness. What does it take to be an expert witness? Self proclamation don't cut it. There are actual qualifications set forth by the courts that define what an expert witness is and if someone claims to be an expert witness then they must have met those qualifications and have been officially recognized as an expert witness. Anyone claiming to be an expert witness but who has not been officially recognized as an expert witness is simply trying to scam people into believing things not in evidence before the court in which they appear or have appeared.

Yes, every homeowner needs to get a mortgage fraud audit but they also need to be very aggressive in determining who they are going to pay their hard earned money to before they waste their money on some self-styled fraud auditor. Most of the time one can be certain that the more claims to fame the auditor makes on their web site the more likely it is that they are a scam.

 

Yes, there is a sort of statute of limitations (for ease of understanding purposes only) after which time you are considered as a first time borrower. It may be 3 years or more. I don't know what the actual time frame is but once that time limit after a foreclosure has happened you are once again considered as a first time buyer.

 

You can qualify for an FHA loan 3 years after a Foreclosure. As long as you have had no lates since the foreclosure and you have re established your credit history.

 

Let me be clear about the 3 year waiting period, as I have been dealing with this for the last year. If it's an FHA foreclosure, then the time frame you must wait is 3 years & 1 day from the date that FHA recorded the foreclosure in their books. For me, that was 6 months after the forclosure actually happened. So total, I had to wait 3 years & 6 months. I would call the FHA Resource Center for more info on your actual situation.

GOOD LUCK with this. And believe me, I know it's a frustrating situation, but you will be able to buy again some day.