Which lenders should I look at, Already had some doors slammed. Trying not to stress!

[JasNH]

Hello everyone I am finding it hard to find anyone that has any good information that I speak to rationally that doesnt have a vested interest in my situation.

So I found this board.

Here are our details my wife and I are trying to Purchase a house in New Hampshire and we both went through a Chapter 7 2 years ago

Details
Wife and I filed bankruptcy in 2010 august, discharged in oct 2010.
Since then we each have the following
1 car loan each
1 credit card each

Our credit scores range from 642 to 676
My wife had a foreclosure in Feb of 2009

Here is the rub
in 2007 I co signed with my mother to refinance her mortgage to help her out as my step father had passed away. My mother filed for Chapter 13 in 2009 and is just coming up on her 3 years since in Dec.
The mortgage for my mothers house was discharged from my credit report in oct 2010 and my name has been quitclaimed from the deed of the house.
My mother currently is paying the mortgage and going through a loan modification process. When the loan modification is completed her lender will be reviewing and considering signing a release from liability for me on the note for this house.

Right now my name is off the deed, the mortgage(according to credit report) but is still listed on the note with the lender.
From what I have dug up the only way to get my name off the note is to either refinance, die, foreclosure, or sell the house. The only viable of those is the refi but trying to tell your parents that they need to do something is not always the easiest thing.

I have spoken to a few lenders I just got off the phone with a mortgage broker today and said my best bet would be to go with a Direct Lender. He previously took all my information and practically "guaranteed" me there were no issues. But the second round of underwriters said there might be issues.

Another mortgage broker said they could not do anything unless the Lender for my mothers mortgage provides a Release for Liability for me on the note.

We also tried through Navy Federal Credit Union and I guess they don't do FHA because they declined us due to bankruptcy not being discharged for 7 years.

do any of you have any advice or know any lenders I would have better luck with?

Or is this all just a pipe dream?

Thank you in advance for any help you can provide!

[drowning123]

From all that I can remember from the wonderful posters in this forum, you'll have to wait at least another year, especially for an FHA loan (it's only been 2 years since you've been quitclaimed). Also, it is my belief that your credit scores are not high enough to snag a loan. I do believe a title search will show that you still "own" the property. Let's not forget the bk. All these things combined are probably what is keeping you from getting a loan.

[JasNH]

Hello drowning123 thank you for your response.

I Have a copy of the quitclaim from the registry of deeds and the registry of deeds is listing me as no longer an owner only my mother. I am confused by your statement, I saw no reference to quitclaim length or requirements for FHA on their website or that it was even a sticking point. The house has not been forclosed on and my mother has been paying the mortgage for the last 3 years since the chapter 13.


To clear one point I was quit claimed off the deed in oct of this year in order for my mother to begin her loan modification. I was informed that a minimum of 640 was required for FHA approval.

[drowning123]

Sorry, I meant it's two yeard sinc you've been discharged. Have you tried eloans.com?

[tobee43]

JasNH, first welcome to the forum.

i want to say there is good news and bad news, however, at this point it's really mostly not that great.

in today's market even those with excellent scores and not getting mortgages, simply because banks are not lending, even direct lenders are not lending. i know people that never had a bk or bad mark on their credit and their scores in the 800's and still cannot get a mortgage. it's just the sign of the times.

eventually, something's got to give. all the inventory the banks are holding cannot stay vacate on many areas of the USA will become ghost towns. there will be something done, i hope within the next 36 months where the government is going to step in and kick the banks to start the ball rolling again. all this take about 2 years 3 years...after this or after than i believe will all be moot. nowadays almost everyone has a black mark on the credit for some reason or other.

there are other options to examine...land contracts, owner financing...(that is how we purchased this house, not that it wasn't difficult to find). work with a broker that understands land contracts...they were used in the 70's when interest rates were topping out at 12 and 13%....it's just a way to assume a mortgage, but it's a bit complicated and one needs to work with someone that knows what they are doing. also, if it's possible the VA seems to be open a bit for some, one person on this forum closed in 30 days using the VA. if, of course you qualify under their terms.

best of luck to you, i know it's hard, but the tide is going to turn!

[JasNH]

Thank you Tobee, I will look into those options

Unfortunately I do not qualify for VA as my wife or I have never served in the military.

I will look more into land contracts and owner financing.

One additional question, should we stop trying to finance through the different lenders?

We have tried 2 brokers, currently working with Boa and citizens and RMS mortgage to see if they can come up with something.

The last mortgage broker we spoke to said other people that they could not finance had better luck with Bank of America.

What are all your thoughts?

[tobee43]

i would work with whom ever will help you. also try quicken loans....now i know they said we could co-sign after 2 years out of bk. i know that's not the same, however, they have also been working with those who are serviced by greentree, a servicing company of mortgages that have been an absolute nightmare for those that have been dealing with them. it is my understand quicken loans is now helping those people re-fi their mortgages. so, they may be open or help give you some direction.

the more you have going the more changes you have to get something done. people will comment on your credit being hit, however, there is an allowance when one is going for a mortgage that should not reflex in your score.

[JasNH]

Good to know. I have been seeing commercials from quicken loans on youtube I wasn't sure about them. I'll check it out, hopefully I will be hearing back from citizens rms and boa soon as well.

From what you are saying it doesn't look like its going to hurt much to try and apply through multiple lenders at the same time?

[SwingLine]

You may want to try Roundpoint Mortgage (Charlotte, NC - google 'em). They are a HUGE direct lender and seem to know all the ins and outs of the FHA guidelines. Also, I believe that they service all 50 states. If there's anyone out there that can get you a loan, I'd bet money it would be these guys. I'm currently doing a purchase loan with them (already approved by the underwriting dept.) and am set to close in a little over two weeks.

My specific issue was that I'm less than 3 years from deed transfer on a foreclosure that was included and discharged in a ch. 7 4 years ago. I was rejected by the first lender I approached due to the 3 year FHA seasoning requirement on foreclosures having not been met, but Roundpoint is starting the 3-year clock at discharge date instead of deed transfer date. Roundpoint has been awesome and I'd recommend them to anybody looking for a purchase/refinance loan, regardless of credit. And for the record, I'm not affiliated with them in any way, just a (hopefully) soon-to-be satisfied customer who has been greatly impressed by their operation.

[JasNH]

Thank you for the information Swingline I will look them up.

[tobee43]

You may want to try Roundpoint Mortgage (Charlotte, NC - google 'em). They are a HUGE direct lender and seem to know all the ins and outs of the FHA guidelines. Also, I believe that they service all 50 states. If there's anyone out there that can get you a loan, I'd bet money it would be these guys. I'm currently doing a purchase loan with them (already approved by the underwriting dept.) and am set to close in a little over two weeks.

My specific issue was that I'm less than 3 years from deed transfer on a foreclosure that was included and discharged in a ch. 7 4 years ago. I was rejected by the first lender I approached due to the 3 year FHA seasoning requirement on foreclosures having not been met, but Roundpoint is starting the 3-year clock at discharge date instead of deed transfer date. Roundpoint has been awesome and I'd recommend them to anybody looking for a purchase/refinance loan, regardless of credit. And for the record, I'm not affiliated with them in any way, just a (hopefully) soon-to-be satisfied customer who has been greatly impressed by their operation.

this is excellent information!!!!

and welcome to the forum SwingLine! i'm going to check them out now. actually, it's interesting they are in NC....we are looking to buy another place there within the next 24 months.

[drowning123]

this is excellent information!!!!

and welcome to the forum SwingLine! i'm going to check them out now. actually, it's interesting they are in NC....we are looking to buy another place there within the next 24 months.

Move over Donald Trump! LOL.

[tobee43]

Move over Donald Trump! LOL.

well, the donald and i had dinner last night, thank heavens he paid!!! LOL!! we need to be closer to family now, my daughter is there. really not our choice, but at least where she is, is very nice.

[drowning123]

Isn't funny how everyone comes back together? My parents live in my house! I'm trying to find a cheap condo next year. LOL.

[tobee43]

Isn't funny how everyone comes back together? My parents live in my house! I'm trying to find a cheap condo next year. LOL.

well, unfortunately, this year has been the most difficult for "us" or me. (only since he doesn't remember almost any of it) and since the big C hit and i was totally alone here to be the lone care giver. not that i minded, however, it's been one of the hardest years of our lives and i need to have some family around. (also being told to say good bye 5 times and bring him to hospice didn't help much either).... if i had my choice it would be back up near my son, he's much nicer than my daughter who is so administrative and cold. she's in compliance, and you can see she's all business all the time. but, she's closest so she wins the prize....

i'm sure glad i didn't say good bye, we just returned from the islands and goes to show life can change in a blink! so it's not that i really want to go there, i just know, if i have to do this again, i would like some family around me.