FHA waiting period - Please, I need clarification????

[LynchByrd09]

Hi,
I know this question has been brought up several times, but I'm hoping someone in the field can assist. Here are my details in order:

Forecloseure- June 1, 2008 (sale date 10/3/2008)

Chapter 7 bankruptcy - Discharged 7/21/2009 (defiecency balances from mortgages were discharged)

After reading through numerous articles and FHA guidlines, I was under the impression my wife and I would be able to get approved 3 years post sale date of the foreclosure, which would put us at October of 2011. I'm trying to be proactive, so I contacted a mortgage lender just to hear it from the "horses mouth" that we would be good to go. According to him (which I'm hoping is incorrect) because our mortgages were included in the bankruptcy, we have to wait 3 years from the bankruptcy discharge date, which would put us at July 2012! I thought it was 2 years post-discharge and 3 post-foreclosure. Is there someone out there that may had had the same situation that can please shed some light for me?

[Charlie777]

It has been 2 years post BK / 3 yrs post foreclosure, whichever is later. But I've heard it "might" be changed, and also that's the minimum, lenders may set stricter standards, just as they may set a higher minimum FICO score than FHA does.

[mike22]

I am in this line of work and it is currently three years form the BK discharge if the mortgage was included. Charlie777 is also right that each lender may have their own benchmarks that you have to meet.

The good news is that if one lender will not allow it to happen at the three year mark there will be someone who will.

[LynchByrd09]

MIke and Charlie - I appreciate both responses.

So basically since our mortgages were included in the Bankruptcy (Discharged 7/2009), we have no choice but to wait til July 2012, or are you saying there may be some lenders that will approve us this year?

[dspii]

FHA is 2 years post BK...3 years post foreclosure with responsible credit usage since event. Conventional is approaching a lifetime.....look at FHA, VA or USDA.

[sick of debt]

Hi
I have been told 3years from title change and yes 2 years BK discharge. The bank took title of our house 8/08 so we are hoping this is true. We have contated a mortgage broker and she sent it to underwriting just to see what they say. I has been a couple of weeks. Will keep you updated.

[Ugh07]

lenders have their own overlays as has been mentioned but you should be able to find someone to do the loan in October of this year based on the information you provided here.

[dp1969]

2 years BK...3 years foreclosure. We just went through this in November with our mortgage broker. Here is what he said...

"Good News! I've just learned that FHA allows a bankruptcy that has been discharged just two years in the past. With your discharge occurring three years ago as of next April, we should be able to obtain a loan approval for a purchase for you! I forgot to mention an additional question. As I mentioned when we spoke prior to our meeting here in the office, the bankruptcy is okay as long as two or more years have passed since the discharge was recorded and, since it' close to three years since yours was discharged in April, 2008 we are fine. There may be an issue, however, if there was a foreclosure included. If it turns out that there is an issue because of a foreclosure, it may be that we will be okay soon, if not already, as I would expect that a foreclosure would have happened prior to the bankruptcy, which is usually the case, so any deficiency balance associated with a mortgage can be included in the bankruptcy. If that's the case, sufficient time may already have passed."