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Not on loan but on title. Can I get a loan after foreclosure?

My husband, then fiance had a home foreclosed in 2010. I was not on the loan but was on title. My credit report and public records are clean. Can I get a loan in my name only? I have had some say no and others say yes after reviewing my file. Thank you. by tygerl_550_591 from Beverly Hills, California. Aug 15th 2012 Reply


Hans Bruhner (Hans Bruhner)
#129 ranked lender in California - 116 contributions

I have to disagree with the others on this one. Since you were on title, the foreclosure will be in your name as well. Lenders do some detective work in the background and runs report called a Lexis Nexis report that shows where you lived etc. it will show you were on title and when that address comes up it will show it was foreclosed upon. Even if you removed your name from title, it was the home you were living in with your husband and any underwriter will consider that a foreclosure for you. FHA will allow you to buy a house after three years so just wait. I also need to say that if someone tells you that you need to come up with a good story as to why you were there is scary and loan fraud is punishable by large fines and jail time - BEWARE!

Aug 15th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Obviously by the number of varying responses this is a tuff question to answer.. On the application, it asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?".. Since you were listed on the Deed to the property, you owned it, so you have to answer this question "Yes".. Even thou you were not obligated to make the payments, you still had a property foreclosed.. The lender is going to require a Letter of explanation, and based on that explanation, will make his determination of your eligibility.. Even if you do not disclose the foreclosure (it would be loan fraud if you did not), then when the application asks for your residence history, and when you reference that old address, the application will ask if you rented or owned it.. if you mark rented, they might require proof you paid rent.. if you mark owned, and the property was foreclosed, your done.. if you don't mark either, the lender will require a letter of explanation, and you will have to disclose it then... FHA guidelines are very specific about the 3 year waiting period, so I would caution you on anyone who says they can get your loan approved knowing your under the 3 years.. FHA also allows for an exception in certain situations, however, it's up to the individual lender and their own guidelines as to whether they will accept it.. 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. 480-287-5714 WilliamAcres.com

Aug 15th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Yes you can get a loan in your own name. Because California is a Community Property state there are a couple of different ways you can do this. If you want to use FHA financing, the underwriting requirements will require the inclusion of your spouse's debts and payment requirements in your debt servicing, but you will not be able to use any of their income to qualify. For conventional financing, you will not have to include your spouse's income or debt. That said, many lenders do have overlays (additional restrictions) and their own policies may not allow you, as the spouse of someone who has a foreclosure to obtain a loan with them. Here at NOVA we would not hold his foreclosure against you, provided you were not on either the note or title. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Aug 15th 2012
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Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

Good to go to your choosen lender there is no reason other than credit and money that will keep you from purchasing. We lend nationwide and service is impeccable I can be reached by e-maill ballen@accessnational.com or phone 888-354-3299.

Aug 15th 2012
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

Since California is a community property state, the legality of any potential deficiency judgments is your only hurdle. You should consult with a real estate attorney to get a better understanding and then discuss with your mortgage professional on how it would impact your eligibility for any loan program guidelines.

Aug 15th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

Consult an attorney familiar with CA real estate law

Aug 15th 2012
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Korene Clopine-Seaman (korene)
#68 ranked lender in Arizona - 89 contributions

based on your statements you should be able to get a loan on your sole and separate purchase if you qualify by yourself. California is a community property state so your husbands debt loan will count against your debt to income but without his income.Call me at 623-340-0934 and I will help you through the process.Korene

Aug 15th 2012
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Dan Marchiando (dan@yourbestinterest.net)
#471 ranked lender in California - 29 contributions

That is a tough question. Your public record may be clean, but when completing a new standard Fannie/Freddie 1004 loan application, on page 3, you have to answer a question "Have you had property foreclosed upon.....in the last 7 years". I believe you will need to answer "yes" and then explain your situation. You may want to use a broker who has access to multiple lenders. Some lenders may shy away from your loan. Best of luck.

Aug 15th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

AS long as you can qualify .. if you do a FHA LOAN, it can be married, sole and separate, and you have qualify for both of your debts.. , also you will need a letter explaining why you were on the title . linda yourloanpartnerforlife@live.com

Aug 15th 2012
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