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New FHA loan after foreclosure - waiting period???

We had a BK and foreclosure a few years back, however the insurance payoff wasn't posted by the bank until nearly a year later. Now we are being told that we can't qualify for a new loan because of a waiting period? Is there a way around this?

by lisa.thomas55178 from Myrtle Creek, Oregon. Oct 19th 2015 Reply


Greg Filzen (gfilzen@mtgcapital.com)
#169 ranked lender in California - 20 contributions

Hi Lisa,I usually don't comment on the competition, but I've never seen so many bad answers on a question on Lender 411 before. Here is the scoop. You can get an FHA loan only one year after a bankruptcy, short, or foreclosure if you can prove you had a financial hardship. Otherwise you have to wait 3 years. If you want a Fannie/Freddie conventional loan rather than FHA, the waiting period is longer...3 years minimum. The foreclosure is considered a more serious issue than the bankruptcy. If you had a financial hardship which is usually limited to loss of a job, or medical or other emergency (losing rent on an investment property or the property losing value or the recession itself usually does not qualify), then you can get many lenders to do a "manual underwrite" to approve your loan without having to wait 7 years after a foreclosure for a conventional loan. Many find that FHA is the way to go after a prior major adverse credit event. Regarding establishing the date of the foreclosure, short sale, or bankruptcy....those dates do not have to be accurate on your credit report. We just contact your old lender and either get them to fax us a letter or order a credit supplement which is done with a phone call to the creditor by our credit vendor. Also a final HUD-1 Settlement Statement on a Short Sale or bankruptcy discharge copy can establish the dates of those adverse credit items. If you would like to discuss the dates of those event and see if you would qualify, we would be happy to help you. We are a 33 year old direct FHA, Fannie/Freddie lender licensed in 30 state. Regards, Greg Filzen, Mortgage Capital Associates 310-619-4700 (direct line), NMLS 354287.

Oct 19th 2015
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John Burke (jburke)
#30 ranked lender in Texas - 187 contributions

Hi Lisa,Based on this sentence, however the insurance payoff wasn't posted by the bank until nearly a year later, It sounds like you're in the CAIVRS system which makes you ineligible for most government backed loans like FHA, VA & USDA mortgages. That doesn't mean you won't qualify for a conventional loan despite what Greg said. The actual Fannie Mae guidelines only require a 2 year minimum wait after a BK with extenuating circumstances just like FHA only requires 1 year with extenuating circumstances.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

Oct 20th 2015
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Kerry Greenwald (kerry@creeksidem.com)
#99 ranked lender in Washington - 17 contributions

Lisa, There is a seasoning period after a BK or foreclosure, if you would like to give us a call we can go over the information on time frames. Creekside Mortgage, Inc. NMLS#70358 Call us at 800.920.5420

Oct 19th 2015
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Nikki C (athascapitalnc@gmail.com)
#1085 ranked lender in California - 2 contributions

Hi Lisa,Since we allow foreclosure bailout and bankruptcy bail out. We could proceed in helping you out. Please do give me a call 877-877-1477 ext 207

Oct 19th 2015
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Jesse Stroup (jessestroup)
#199 ranked lender in California - 591 contributions

I have seen this issue with other clients; the bank list a date well past the foreclosure date of when you signed. You have have to call the bank to see if they will work with you to update the dates they are listing to the credit companies. Other then that you will need to work with the investor guidelines.

Oct 19th 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 597 contributions

There is a waiting period and it is tough to get around this. You may have some options. I would need to get more details to figure out if we could put something together for you.Derick Condrondcondron@rightstartmortgage.com

Oct 19th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

For a new FHA loan, if the old loan with the foreclosure was an FHA loan, the rules require you wait at least 3-years past the date FHA paid the loss to the lender. If the old loan was NOT an FHA loan, then it is just a straight 3-year wait past the Sheriff Sale date. Generally it is just a month or two afterward for FHA to pay the loss, but it is not unheard of for it to be as long as your experience. So if you had an FHA foreclosure, and want a new FHA loan today, there is nothing you can do except wait. For FHA loans in MN, WI, and SD, visit me at www.JoeMetzler.com

Oct 19th 2015
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