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VA mortgage after BK and foreclosure

BK was discharged in Jan 11, surrendered house in the CH 7. BOA has not YET foreclosed on house. Will our ability to get a mortgage be based on date of BK discharge OR date of foreclosure? by carlad_654_185 from Orlando, Florida. Jan 18th 2012 Reply


Steven Brand (stevenbrand)
#2 ranked lender in Minnesota - 111 contributions

quick answer to your question is confirmed by other... the date of the "discharge date".For OTHER INFO that you may find interesting... here's info from the VA HANDBOOK:The US Department of Veterans Affairs will allow an eligible Veteran to qualify for a VA loan TYPICALLY two years after discharge date of a Chapter 7 BK. There are guidelines that the VA spells out for a Veteran to qualify between 1 and 2 yrs after discharge date according to Chapter 4 of the VA Lender Handbook: if both of the following are met1. borrower and/or co-borrower have reestablished satisfactory credit, and2. the bankruptcy was caused by circumstances beyond your and/or your spouses control (such as unemployment, medical bills, etc.) Another situation for a determining that an applicant is a satisfactory credit risk is in situations where the BK was caused by failure of a business of a self-employed applicant and: othe applicant obtained a permanent position after the business failed, othere is no derogatory credit information prior to self-employment, othere is no derogatory credit information subsequent to the bankruptcy, and ofailure of the business was not due to the applicant's misconduct.Hang tight.

Jan 18th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

BAD NEWS.... the clock starts when the home has been removed from your name, so if BofA has not foreclosed yet, then the clock hasnt started. Conventional financing required 2 years after the foreclosure with extenuating circumstances, and FHA, VA all require 3 years... Also, if your home that you just lost was a VA loan, you wont be able to go back to VA without additional stipulations. WilliamAcres.com

Jan 18th 2012
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Lynne Rohde (TeamRohde)
#87 ranked lender in Florida - 6 contributions

2 years after the BK was discharged with the foreclosure being included in it. I am a VA underwriter with over 25 years of experience. LMRECO@aol.com or www.TeamRohde.com

Jan 18th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Just to clarify... VA guidelines state 2 years, however lender overlays will require 3. Very, Very few lenders will do a VA loan just 2 years out of a foreclosure... Here in AZ, I have only have one.. But in any case, you must have re established credit and have sufficient credit scores. WillimaAcres.com

Jan 18th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

William is correct. Virtually all lenders have lending overlays that tighten the criterea. VA may allow for a new loan after two years, but most all lenders have overlays that increase that time period to three years. The clock starts when the foreclosure deed is recorded taking the property out of your name. Until your lender records the deed, your clock has not yet started. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Jan 18th 2012
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GEORGE BURNS JR (gibbs41)
#141 ranked lender in Florida - 2 contributions

In general, VA lenders will require a waiting period of 3 years from date of foreclosure + new credit. C7 BK requires 24 months from discharge. Exceptional circumstances may result in some modification, but this is tough.George Burns Jr.Sr. Loan OfficerHometown Lenders

Jan 18th 2012
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