Seasoning Periods - Is there any concrete time periods with BK7 & Foreclosure?

[DoOver]

Hi. I kinda posted this in a reply to my other post but thought I'd start a new topic with correct subject. Hope that's ok with the mods ;)

Okay, so there seems to be so much confusion surrounding the new rules for FHA, Fannie Mae, Conventional, etc loans when you file BK7 & have a foreclosure. Can anyone please clarify precisely what the seasoning periods are?

Also, do you know of any loan companies/institutions to try (I think I can receive PMs so pls PM me if possible)?

Here's my situation: I'm in S. CA. I'm just almost at my 3 yrs after BK7 discharge. Our house debt was IIB (schedules listed the debt and credit report shows BK but not foreclosure). However, our attorney did not check the "surrender" box in the BK filing. It's checked "retained" with a note of "other: retain and pay pursuant to contract". It definitely was not reaffirmed though. Foreclosure occurred 1 year ago. We have about 5-10% to put down.

Do we have to wait 3 years after the foreclosure date bc of the fact the atty checked "retained" vs "surrender" in the BK7 filing despite including the debt in the schedule? My BK atty says that the house was definitely included in the BK7.

Any clarity or advice or recommendations is much appreciated. TIA

[babsthebear]

You are definitely in the middle here.

• Fannie Mae figures the waiting period has been met after 4 years - but only if the BK included your mortgage. In other words, they go by the waiting period for a BK7 vs. the ultimate foreclosure date. They finally understood that banks took quite some time to dispose of the property.
• FHA has a waiting period of 3 years, but their waiting period is measured by the last derogatory event. In your case, it would be the foreclosure.
• There are lenders who will do loans that are a combination of those guidelines. There are specialty loans available, but they do not come with the same interest rates that Fannie Mae or FHA will offer. We have one which is priced based on the score, length of time since "the event," and down payment. They will go by the BK7 discharge date and recognize that the mortgage was included. In that situation, the minimum down payment is 15%, score of at least 700. I prefer to look at these loans as a 2-step process.

[DoOver]

Thank you for the info babsthebear. How do I find lenders that would do "step 2"?

Anyone else have updated info on seasoning periods by chance? We are now almost 4 years from BK7 discharge and almost 2 years from foreclosure. Found out that the box that you're supposed to check off on the BK paperwork to include the house wasn't checked but all data (and Atty confirmed) that the house was indeed included even though the box wasn't checked off. TIA