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how can a va loan be forgiven because of divorce and bacruptcy had to be filed?

by marcolejr2892 from , California. Sep 19th 2016 Reply


Larry Gray (lgray_312_247)
#4 ranked lender in California - 1,127 contributions

Each person's situation has to be looked at with all necessary details reviewed. Outside of a short sale on a property per agreement with the lender to accept less than the original loan amount things are looked at a little more harshly...if there was a foreclosure. There is a typical waiting period of 2 years to be able to get a VA loan after a foreclosure. We do loans shortly after a foreclosure, but not VA loans and typically we will require 25% down payment and rates will be a bit higher, yet still better than a hard money loan. Considering many lenders require 5 or 7 years wait after a foreclosure, two years is not bad per a VA guarantee insured loan!

Sep 20th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Your question is confusing.. did the property get foreclosed? Was it included in a BK? is the BK discharged? If you have a VA foreclosure, and the property resided in CA, then because of your state's anti-deficiency laws, the debt has been forgiven.. however, if you wish to use your VA benefits again, you can only use the balance of your remaining entitlement.. if you used all your entitlement, then to restore it, you would need to pay off the VA their loss.. However, you can use FHA for financing so long as 3 years has passed since the foreclosure or BK.. But FHA requires 3.5% down.. If you want to know for sure what you would qualify for, then the best advice I can give you would be to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 20th 2016
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Larry Gray (lgray_312_247)
#4 ranked lender in California - 1,127 contributions

You had asked this question a couple of times and as below I mentioned a typical overlay of 2 years as with a minimum two year wait after a chapter 7 bankruptcy. Below is what the VA says and we can now apply so one might possibly not have to wait two years, depending on overall credit and income review, and very importantly, how much you might have left on your eligibility after subtracting the loss the VA took on the foreclosed property. If there is sufficient money left on your eligibility than qualifying may be possible. Normally in a consultation via the phone or email this kind of detail would come up once I understood your scenario:f. ForeclosuresThe fact that a home loan foreclosure (or deed-in-lieu of foreclosure) exists in an applicant's (or spouse's) credit history does not in itself disqualify the loan.

Sep 22nd 2016
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