New Twist on Post CH7 Mortgage?

[kingfisher]

I've been reading the posts aboutgetting another mortgage after doing a ride through on the current house post Ch7.

This might be a new twist on this so I wanted opinions:

My husband and I each had houses when we married. I had two, he has one--each in our own names. After CH7 we're down to the home in his name. The reaffirm never happened and my name has never been on this loan.

We're now one year post CH7. We've been paying on his house all this time.

After another year or so, would it be possible for us to have just me buy the next house since my foreclosures will be over 2 yrs old and then he can walk away from his?

Also--does FHA have a different requirement for tha amount you must put down on a house?

Thanks for your help.

[HHM]

FHA requires 3.5% down payment. I do not think that minimum changes if you have a BK or foreclosure. Last I heard, the timeline post foreclosure for a new mortgage is 3 years. (but you can often use the BK as the mitigating circumstance to get you to the 2 year post BK timeline).

[hereforinfo]

That could work as long as you meet the income requirements on your salary alone. If his name can't be on the mortgage, only your income and debts will be considered.

[AlreadyFiled]

why dont you both put your names on the new house BEFORE he walks away since his payments will be up to date (showing good payment/credit) then once you have your new house.... then he can walk, and no biggie.

[kingfisher]

I'm told that, in order to put my name on the house, we'd have to refinance. That means we re-affirm the loan and will have ANOTHER default if we then walk.

thanks

[hereforinfo]

Are you upside down on the current house? If so, by how much? Is there a reason you want to move? I ask because it may not make sense to purchase something else by the time you add up the down payment, closing costs and moving costs. You could potentially put that money toward the house you have now.

[kingfisher]

We bought in 2007 and the house has declined even below the 20K we put down on it. [This is Michigan.] We hate the house. My husband will have to relocate after finishing school in order to find a job....

[RickInMich]

FHA requires 3.5% down payment. I do not think that minimum changes if you have a BK or foreclosure. Last I heard, the timeline post foreclosure for a new mortgage is 3 years. (but you can often use the BK as the mitigating circumstance to get you to the 2 year post BK timeline).

HHM, can you explain that a bit. I sooooo want and need to get a mortgage at the 2-year time frame, which is this coming March. But everyone everywhere I read says 3 years. You offer hope.

So do you have more info on the aspect that the bankruptcy can be a mitigating circumstance?

[HHM]

You will need a mortgage broker to go the extra mile for you. All of the FHA guidelines on timeline provide for X years "unless" there are special or mitigating circumstances. So, your argument is, the BK is the mitigating circumstance to the foreclosure. After all, you surrendered your home in the BK, it is not your fault that the bank (and state law) makes the foreclosure take so long.

It will come down to your individual circumstances.