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My Ch 7 Bk was discharged on 2/4/13. I am in escrow on a new home, but my lender says they can't close until 3/1/17. Why?

by shardlund810 from Los Angeles, California. Feb 24th 2017 Reply


Dan Paladin (dpaladin)
#2 ranked lender in California - 417 contributions

Hard to advise...the seasoning is 4 yrs from your discharge date. Did you ask the lender? More info would be needed...there are compliance guidelines to meet. The CD has to be issued and then 3 days later docs can be signed. Best to check with your lender.

Feb 24th 2017
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I checked with my lender, but I'm not understanding the reasoning. They said something about having to wait until the next month plus one day. This makes no sense. I'm just teying to figure out the reasoning behind it and whether there is some law or rule regarding this.

Feb 24th 2017
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Dan Paladin (dpaladin)
#2 ranked lender in California - 417 contributions

Was it due to the BK? Sounds like the official date of your discharge might be different than you have stated.I would ask the lender if that is the case...

Feb 24th 2017
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John Burke (jburke)
#1 ranked lender in Texas - 183 contributions

Hi Shardlund810,What type of mortgage did you apply for? I'm going to guess it was conventional. If so the reason for the delay is the AUS (automated underwriting system) cannot read the full date of your discharge so the system will "refer" until the month after the 4 year requirement. Does that make sense? Please feel free to contact me for more information or help. John Burke - Senior Mortgage Banker - Lending in ALL 50 states - Great Plains National Bank - 877.228.9069 - NMLS# 787231

Feb 27th 2017
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