Met with the banker on 12-30-10.... 3 years is coming soon 2-4-11

[OneDay]

We met with the banker about a FHA loan on 12-30-10. Our three years is up 2-4-11 and we will be eligible for a loan then. We are writing our letter of explanation and getting things in order, almost time to seriously start shopping.

She said everything looked good and should be no problem, our fico scores are 690 and 682 right now.

News as it comes.

[Dannmcg357]

Thats awsome. Congrats. What is letter of explaination?

[chicagoannie]

Good for you - please update. I so want to own my own home again!

[OneDay]

Thats awsome. Congrats. What is letter of explaination?

The letter of explanation basically sums up what led to your bankruptcy demise. The shorter the better, but very cut and clear. "My wife and I accumulated debt from a construction business in 2006-2007 when the Northern Colorado housing market flattened out. With a loss of 50% of our income we became overwhelmed and could not meet our credit obligations. " Plus we included additional information about what we learned from our experience.

We have been given a letter of credit from our Lender so that we may make an offer on a home when we find the right one. We have looked at 30+ homes in our budget in the last 2 weeks.

FEB 5 will not Come quick enough.

[SubPrimeME]

Good for you!

Question to the OP, where you able to lock on a rate, or do you have to wait until feb to lock?

[OneDay]

We have to wait until Feb 7 to lock in and start the actual loan process.
The house we put an offer on was citi bank owned.
Listed at $184,900
We Offered $174,900
Bank Countered $179,900
We Countered @ $177,500
DEAL!

Awesome Feeling!!!


NeVeR LOSE HOPE!

[LynchByrd09]

HI,
You stated the 3 year period is almost up in your thread. I thought I read somewhere that it's 2 year waiting period post chapter 7 discharge? My wife and I filed in April 2009, and discharged in July 2009. I thought we would be eligible come this July. Am I mistaken?

[SunshineGal]

Just an FYI, most lenders use an automated underwriting system (AUS) for loan approval and the guidelines are a little different versus a manual underwrite. In order to get an AUS approval you have to wait until the 1st of the month past your 2 years from discharge. So, if you were discharged on Jan 1st, 2009, or Jan 31st, 2009, you want to wait until Feb 1, 2011 or you'll end up with a refer which means you'll now need a manual underwrite.

[HHM]

HI,
You stated the 3 year period is almost up in your thread. I thought I read somewhere that it's 2 year waiting period post chapter 7 discharge? My wife and I filed in April 2009, and discharged in July 2009. I thought we would be eligible come this July. Am I mistaken?

OP probably had a foreclosure. The 3 year window is if you have a foreclosure.

But, you are correct, for bankruptcy, it is 2 years.

[OneDay]

Just got a call from our banker, we have a FHA issue.
FHA shows our foreclosure discharge as 8/24/2011, 6 months and 20 days from our BK discharge.
So FHA will not write the loan.
We cancelled our 2/24/11 closing and are now in panic mode, we are out of our rental home on the 28th.

Our banker pisses me off by saying she is suprised with this development. I specifically asked about this being an issue as
I heard it has been for others. She said not to worry.

So we say goodbye to 4 7/8 % interest rates. Goodbye to closing as planned.

Citi bank owns the propery and our realtor is trying to set up a rental agreement for 6 months until we can close.

Banker is looking for an exemption from the salary cap on the Ameridream program.


So. This sucks.

[HHM]

FHA shows our foreclosure discharge as 8/24/2011,

I don't think you meant to put 2011. In any event, the 3 years starts running from when the foreclosure was complete, not when the bankruptcy discharged your mortgage note.

But that totally sucks nonetheless. Best wishes and good luck.

[OneDay]

Correct, what i meant was 3 yrs from discharge is in 2011.

[OneDay]

I find this somewhat disturbing that the bank knew up front of our foreclosure yet said it was based on the BK discharge date. Even when I expressed specific concern about being able to obtain a FHA loan 3 years out and whether the date was the BK date or the FC date.

Obviously this is not true and they now say they had no way of knowing the foreclosure date until the paperwork was submitted to the FHA.

[OneDay]

Rental agreement has been declined, they are willing to extend our contract for 30 days if we can get an exemption from an alternate program. They want us to pay the property tax for that extra 30 days.

We are $4500 over on the income cap for another program, everything is riding on this or it is another waiting game.

[sick of debt]

I don't understand why the bank didn't look at your foreclosure date. That really sucks. Hopefully something works out for you!