Posted on: 13th Feb, 2012 02:53 am
I went through a foreclosure in February, 2009. I had two mortgage on the property of which American Mortgage foreclosed and took the amount. The other loan was with Citimortgage and has marked it as charged off. I need to know will I be eligible to apply for a loan either Conventional or FHA loan. This charge off - will this cause a problem when I apply for loans?
After a foreclosure, you need to wait for 3-4 years in order to qualify for any kind of loan. You should have taken steps to pay off your charge off debts within these 3 years. A charge off on your credit report will be considered as a negative item when you apply for a loan and you may not qualify for a loan due to this.
Hi Arlene!
Welcome to forums!
As Niicss has said, with a charge off loan listed in your credit report, you won't be able to get qualified for a new mortgage now. Once you apply for a mortgage, the lender will ask you to get rid of the charged off account. If the CA has contacted you for the charged off loan, then you can try and set up a payment plan with them and pay off the account.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As Niicss has said, with a charge off loan listed in your credit report, you won't be able to get qualified for a new mortgage now. Once you apply for a mortgage, the lender will ask you to get rid of the charged off account. If the CA has contacted you for the charged off loan, then you can try and set up a payment plan with them and pay off the account.
Feel free to ask if you've further queries.
Sussane