BK or Foreclosure rules which apply?

[imoverit]

If you do call that number, please let us know the outcome...I am sure there are lots of people that would like to know straight from the horses mouth!

[monkatom]

called this number Tollfree: (800) CALL-FHA or (800) 225-5342 as the other number was for conusmer counseling agency. Per the person on the phone Stacie she said that FHA would most likely look at public records and find the foreclosure even if it was not on my credit report and use the stricter foreclosure guidelines as opposed to the 2 year BK guidelines. She did mention with the foreclosre you could shorten the guidelines if you meet certain circumstances and plead your case.

Not what I wanted to hear as i was hoping to get a new loan next year at the 2 year mark. Now I will have to wait 3 years from foreclosure date and who knows when that will be. BTW what is the foreclosure date, the date the home is sold? What if nobody buys do you just keep waiting for a foreclosure date?

[Logan]

Why don't you pull your public record?

[monkatom]

I will try that. The house is not in foreclosure yet so I will wait until after it is foreclosed upon to see if it shows. Pretty easy to search public records?

[RickInMich]

Yeah, I'm disappointed about the 3-year wait, too. We are in the exact same situation as the OP, I believe. We were discharged March of '08. We ended up moving out of state in July of '08 (I got a much better job), and our house went to Sheriff's sale in October. A check of the county records shows that Fannie Mae has the title as of October 7, 2008. So even though we didn't affirm the mortgage, I'm assuming the foreclosure date would be that
October 7, 2008 date.

Our situation has dramatically changed, and I've nearly doubled my income since we moved. I'm hoping that has some effect on our ability to get a new loan. Most of my scores are upper 600's to low 700's. Again, I'm hoping maybe that will help us get a loan at the 2-year mark after discharge.

[monkatom]

Keep us posted Rick as yeah same boat. will have down payment decent scores and good income. Hopefully the market stays down and in 4 years we can get a place

[imoverit]

same here! I would love to be able to buy a house without having to wait. I am sure there are lots of us out there and that sure would get a lot of these vacant homes off the market, maybe even help the housing market! I'll just keep my fingers crossed that waiting period changes!

[SubPrimeME]

actually the fha FAQ is where you want to look:

http://www.fhaoutreach.gov/FHAFAQ/

FAQ:

A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. Additionally, the borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs. An elapsed period of less than two years, but not less than 12 months, may be acceptable if the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his or her control and has since exhibited a documented ability to manage his or her financial affairs in a responsible manner.

Additionally, the lender must document that the borrower's current situation indicates that the events that led to the bankruptcy are not likely to recur. A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower's payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.