Hi All, My CH7 and foreclosure(s) weren't medical. But I'm thinking the FHA circumstances might be able to be 'bent' to my scenario. Feel free to tell me if I'm crazy...I can handle it.
The Rules (Thanks to user DebtStinks for the earlier post)
FHA Foreclosure Extenuating Circumstances:
The lender may grant an exception to the three-year requirement if:
The foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner:
-Solid employment thru this. 116k combined income now.
-I've always had great credit (saved an old report to prove it)
-I bought 3 apartments at a great discount. Negotiated a great price because resale was my troubled exit strategy. Had some problems though, and couldn't sell because the market had dropped precisely when I needed to let them go. I was wiped out...and had no ability to fix the problem.
The borrower has re-established good credit since the foreclosure.
-I have a printout of a 720 Transunion fico prior to apartments purchase
-I'm back to 690 today, 11months post discharge.... and climbing.
-Reaffirmed several loans with my local CU as a show of good faith.
-116k combined income.
Note: The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.
-are they saying inability to sell (my problem) or only if I was moving?
FHA Chapter 7 Extenuating Circumstances:
An elapsed period of less than two years, but not less than 12 months may be acceptable for an FHA-insured mortgage, if the borrower:
1) can show that the bankruptcy was caused by extenuating circumstances beyond his/her control
-I only bankrupted 7k in consumer debt. My entire BK was because I had no other way to divest the real estate. I'm fine now.
2) has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.
-I always was responsible. I wiped out my life savings paying mortgages until I finally cracked. I thought buying real estate was responsible. Never again.
Note: The lender must document that the borrower’s current situation indicates that the events that led to the bankruptcy are not likely to recur.
-Trust me, this is *NOT* going to recur.
The Rules (Thanks to user DebtStinks for the earlier post)
FHA Foreclosure Extenuating Circumstances:
The lender may grant an exception to the three-year requirement if:
The foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner:
-Solid employment thru this. 116k combined income now.
-I've always had great credit (saved an old report to prove it)
-I bought 3 apartments at a great discount. Negotiated a great price because resale was my troubled exit strategy. Had some problems though, and couldn't sell because the market had dropped precisely when I needed to let them go. I was wiped out...and had no ability to fix the problem.
The borrower has re-established good credit since the foreclosure.
-I have a printout of a 720 Transunion fico prior to apartments purchase
-I'm back to 690 today, 11months post discharge.... and climbing.
-Reaffirmed several loans with my local CU as a show of good faith.
-116k combined income.
Note: The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.
-are they saying inability to sell (my problem) or only if I was moving?
FHA Chapter 7 Extenuating Circumstances:
An elapsed period of less than two years, but not less than 12 months may be acceptable for an FHA-insured mortgage, if the borrower:
1) can show that the bankruptcy was caused by extenuating circumstances beyond his/her control
-I only bankrupted 7k in consumer debt. My entire BK was because I had no other way to divest the real estate. I'm fine now.
2) has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.
-I always was responsible. I wiped out my life savings paying mortgages until I finally cracked. I thought buying real estate was responsible. Never again.
Note: The lender must document that the borrower’s current situation indicates that the events that led to the bankruptcy are not likely to recur.
-Trust me, this is *NOT* going to recur.
Bankruptcy Wizard
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