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Company Loan Type APR Est. Pmt.

FHA loan after Chapter 13 dismissal

Posted on: 13th Nov, 2007 02:46 pm
hello, i was a home owner for 11 years, and like others, ran into some financial problems. i decided to enter a chapter 13 bankruptcy. about 2 years into that plan, i decided to dismiss the chapter 13, sell my house, rent for a year, then try to re-purchase another home.
my question is, on a fha mortgage, is there a waiting time, to get approval?
any help would be great. thanks
Well, I took some advise, talked to another lender, to see about their rates, and manuel overwriting. Unfortunatly, I was told they couldn't help me. My credit score dropped somehow to 610, but the reason they couldn't help was because even though the bankruptcy was dismissed in 10/06, my credit report showed mortgage lates for 11/06 12/06 and 1/06, and shows foreclosure started 1/06, then paid off 3/06.
My question is this- FHA looks at 12 months of no lates, is this going to effeect me in 02/08, on getting final approval?
starting to worry, Ken
Posted on: 03rd Dec, 2007 08:01 am
I would've gotten a 2nd opinion. If these items are collections some FHA lenders will overlook them...especially if there over 6yrs ago.

Ask your lender if they do Manual Underwrite.
If they dont...this maybe one of the reasons why they're asking for so much.

Right now you shouldn't get higher than 6.25% on a 30yr fixed FHA mortgage
Posted on: 03rd Dec, 2007 08:16 am
banker,

What is your deal with 6.25%? You have told in every one of your posts lateley that the going rate is 6.25%. Please stop as it doesn't help someone to not answer their question and just to write "you should get 6.25%"

If you are approved through manual underwriting your rate will be higher with those lenders than with a normal FHA loan, not 6.25%, more like 7.5%.

This has been my experience and yes, I have an in-house FHA underwriter, you need....

1. 12 months of current payments on everything
2. No judgements or liens
3. All collections, judgements, liens need to be paid off. (except medical bills)
Posted on: 03rd Dec, 2007 10:31 am
OP -
Foreclosures require 2yrs for FHA....this is what is prohibiting you from taking out the FHA for now. If you have a BK 7..it's also 2yrs. BK13 is 1yr

Also, I work with over 440 lenders....find a lender that DOESNT charge to do MANUAL UNDERWRITE, and you will receive a rate for 6.25%.

Ask your broker if they deal with Taylor Bean Whitaker (wholesaler).
They dont charge for Manual underwrite......Their highest rate TODAY is 6.875%.

Normally, a lender may charge the broker 0.5% to perform Manual Underwrite. Of course the broker/lender passes the cost to the borrower.
This is why I like TBW (taylor bean)...no hits for loan amount..and no hits for manual underwrite!



good luck!
Posted on: 03rd Dec, 2007 11:13 am
But when does TBW approve with collections? Could you pm me with your AE's name and phone #. I would greatly appreciate it.

I think he will probably have to take care of them or pay them off.
Posted on: 03rd Dec, 2007 11:31 am
I didnt say anything about collections or judgments.

bottomline is that the OP wont be able to do FHA until 03/08...due to the FC.

Collections that are 2yrs old or more can be ignored.

You should hookup with TBW they have great rates.
Posted on: 03rd Dec, 2007 11:33 am
foz- i looked up the Foreclosure guidelines, and it states 3yrs.

Sorry for the confusion.
I have done a few around 2yrs, but they had valid reasons to why they went into FC.

If you dont have a valid reason the U/W will require 3yrs from when the FC was paid.

sorry once again!
Posted on: 03rd Dec, 2007 11:56 am
I WAS IN CHAPTER 13 FOR 2 1/2 YEARS, DECIDED TO SELL MY HOUSE, AND WAS TOLD BY MY REALTOR TO HAVE IT DISMISSED, SO THAT IT WOULD MAKE IT EASIER TO SELL. CHAP 13 DISMISSED 10/06. HOUSE SOLD, AND WENT TO SETTLEMENT 2/23/2007. I DIDN'T EVEN KNOW THAT THE FORECLOSURE WAS STARTED BACK UP. HAD THREATS OF A FORCLOSURE, BEFORE, THATS WHY I WENT FOR CHAP.13. ? DO I HAVE A CHANCE IN FEB. OR MARCH '08, TO GET A FHA LOAN?
Posted on: 03rd Dec, 2007 12:57 pm
sorry, that was me writing, forgot to log back in.
Posted on: 03rd Dec, 2007 12:59 pm
depends what your credit report states about the foreclosure.

if it was in the last 3yrs then the answer is no. Sorry.

Be upfront with your loan officer and ask them about this.
Ask them about the Foreclosure on your credit report..and what are the guidelines.
Posted on: 03rd Dec, 2007 01:03 pm
It sas : Paid, Closed/Current, foreclosure was started.
I spoke with my broker and he told me to call the mortgage company, and ask them to take it off. Mortgage company asked me to put it in writing, and send to there "Customer Advocate Dept" fax.
Do I have a chance in this happening, or is there a better way?
Posted on: 03rd Dec, 2007 01:50 pm
Sounds like you did a short sale?
That means that your M-9 for FC should change to M-5 for a short sale.

Speak to the loss/mitigation department.
There the only one who can provide you the letter you need for the U/W.

In the meantime, dispute your credit report if the FC never happened.


I'm surprised your Loan Officer didnt cover this before.
Posted on: 03rd Dec, 2007 02:17 pm
banker,
This wasn't a short sale, and the FC never happened.
you say "speak to the loss/mitigation dept" . are you talking mortgage company that has listed this info on my cr.rep.?
"surprised at loan officer". yeah me too! Any good brokers in Delaware on this site, who want to help me?
Posted on: 04th Dec, 2007 08:02 am
it's up to the Underwriter.

the loss/mitigation will provide you a document that states that the foreclosure never happened.

dispute it on your credit report...and tell them it should say m-5...not an m-9
Posted on: 04th Dec, 2007 08:08 am
credit report says MTG 01
says CURRENT/FORECLOSURE WAS STARTED
Under MTG 01 says REAL ESTATE then under that XPN 01 (EFX,TRU)
does this mean I have to send a dispute letter to all three bureau's?
Thanks for all your help here. This is driving me crazy, but I wan't to get this done, and will do whatever it takes.
Posted on: 04th Dec, 2007 08:25 am
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