Recently turned down for a mortgage because my better half had a foreclosure on a previous property financied with FHA. Was told we couldn't get a mortgage loan (VA,FHA, Conventional) for three years after the foreclosure. Anyone help with this?
You CAN but expect to have to put more down and pay higher fees. I had a foreclosure 3 years ago. I didn't try to apply for a mortgage until this year because I heard FHA says you should be 3 years post and Fannie Mae says 2 years post IF you have good reason (they decide what's a "good reason"). Try other lenders.....go to mortgagequotes.com and check the bad credit loans. They will give you the APR, LTV and the credit grade. You can take a little "test" to determine your grade. Good luck! P.S. Have you tried to do it without your better half?
dpope, Without knowing more about your situation, it will be impossible to truly answer your questions. If you wish, email me off board and I will try to answer your questions in a venue that is not so public. There may be solutions that you haven't considered yet. fla-tan
dpope3, Was is a foreclosure that was completed? My fiancee was in the foreclosure process with FHA but they allowed her to sell the house. We sold it before the foreclosure but FHA accepted a smaller amount to pay off the loan. The only reason I'm asking about your situation is that my fiancee is going to try and buy a house at the end of the year. Try another lender. I always thought it was 2 years needed to pass, not three.
We were told by the Government Rep it was 3 years from the date of Foreclosure. She got screwed because she had a contract on the house prior to foreclosure and the mortgage company lawyers (Principal Residential Mortgage) kept dragging their feet and coudn't get the payoff in time.
So the foreclosure went through on her house? You might be able to use the lawyer's dragging their feet explaination with FHA. My fiance'e had the ex-husband/stalker/alcoholic/psycho excuse to use. It was too funny. We actually had to get him to sign a statement with her on reasons for the mortgage payments not being met. Well, as you can see, he's not the type to really work with us, so she asked him to type a astatement and he wouldn't. We typed one using all and more of the above terms to describe him and his activity and he signe dit without reading it. Classic. Try FHA with a good explaination. Sometimes they'll work wonders.
How do you get FHA to listen? The only way we could acutally find out what the deal was, was by having our mortgage agent call the FHA and find out what was going on. The lady at FHA told us she couldn't give us the information, she could only talk to the mortgage agent. (Probably BS) We found out that she owes FHA $104,000. The house hasn't sold yet.
What's the house listed at? Is FHA going to let you short sell the house? Your Real Estate agent should be taking care of that.
You will have to explain what "short sell" is. And I wonder why my agent didn't say anything about it?
THe FHA will accept a lesser amount than what is owed if you have a valid explaination. It's called a "short sell" and it prevents the bank from foreclosing on the house. FHA will pay the difference to the bank, but you'll get a 1099 on the differrence, so you'll pay taxes on the forgiven amount.
Let me put some background on this. My better halfâ??s ex was the major cause of her problems. He was in and out of jail during the last year of their marriage. She was constantly posting his bail, lawyer fees, court costs and fines. He was not the most intelligent person when it came to money. She had to get a separate checking acct. just to keep up on the bills. Needless to say she got behind and thought about a Chapter BK. She started the process with a lawyer and then decided to leave the guy and pull out of debt by herself. (Good decision) When I met her she was in the process of selling the house. She had a guy who was going to buy the house. I was even there one day when this guy came over to fix some things on the house that VA had told him to fix. It seemed like everything was fine until she was told by Residential Mortgage that they couldnâ??t do the paperwork in time to sell the house. It seemed that the lawyers for Residential Mortgage had dragged their feet on doing some paperwork, so the house went into foreclosure and she heard nothing from anybody after that. We knew we were going to buy a house, so we pulled our credit reports and started paying off some collections she had (mostly from her ex) and went to pre-qualify for a loan. On her CR it showed the foreclosure with a zero balance. The mortgage agent had no problem with us until he started looking at the foreclosure. Our income was fine. Now we are told that we are stuck for 3 years. Can she still try to sell the house? I looked up the property and it shows it is in foreclosure with FHA now owning the property. We donâ??t have the money to pay off FHA. We are trying to find a way that will allow us to buy now without waiting 3 years. BTW just found this forum and this is great!!!
I'm not sure on those facts as you present them. Since you state that FHA owns the home, they must have paid off the bank and took possession of the residence. I'm not sure what your options are. Would you want to maybe buy the house back from FHA? I don't know, maybe someone with alot more knowledge or experience can assist. Sorry. Your right, this board certainly rocks. Alot of great info.
We don't want to buy the house back. Our mortgage agent told us that since the house hasn't sold, we owe the $104,000 to FHA and after three years that will not be the case and we can get a loan.
