There is a clear sign of confusion in the mortgage industry. If one follows the HUD.Gov handbook guidelines it treats these as two separate issues it does NOT address the question of what is the waiting period for Foreclosure and Bankruptcy on the Same Mortgage.
What is needed is a clear definition and communication to the industry regarding what is the correct waiting period for individuals with Foreclosure and Bankruptcy on the Same Mortgage. Fannie Mae has a statement on their website that is pretty clear. It reads “If a mortgage debt was discharged through a bankruptcy, the bankruptcy waiting periods may be applied if the lender obtains the appropriate documentation to verify that the mortgage obligation was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting periods must be applied.”
My suggestion to all is contact HUD.gov and ask for clarification. Challenge them to outline a clear and consistent guideline as Fannie Mae did.
What is needed is a clear definition and communication to the industry regarding what is the correct waiting period for individuals with Foreclosure and Bankruptcy on the Same Mortgage. Fannie Mae has a statement on their website that is pretty clear. It reads “If a mortgage debt was discharged through a bankruptcy, the bankruptcy waiting periods may be applied if the lender obtains the appropriate documentation to verify that the mortgage obligation was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting periods must be applied.”
My suggestion to all is contact HUD.gov and ask for clarification. Challenge them to outline a clear and consistent guideline as Fannie Mae did.
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