Disclosing an old Foreclosure on a New mortgage??


LoanSafe Member
In the process of entering escrow for a new home with a new mortgage. With an attorney's help, we walked away from a previous home in 2012. The foreclosure was finalized in 2015. Since then, credit built back up to 800+. We pre-qualified (they ran a hard pull credit check) at several different lenders, and they all say that the foreclosure does not show up. We even spoke up and disclosed the foreclosure, and said we were unsure of the exact date. Lenders said that it didn't show up on the credit check, so nothing to worry about.
But now about to enter escrow, and I understand that at this point they look for liens? Not sure how that works. Do they look for active liens, or will the old foreclosure lien from 2015 show up?
I guess the main question is...if the old foreclosure is going to complicate matters, at what point will the lenders find it?

Thank you.


LoanSafe Member
I didn't mean when will they "find" it. We already disclosed it to them. I meant at what point can they halt our escrow and say, "Wait, this foreclosure is a problem after all." Even though the initial loan officers said it's not an issue, we are still leery.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Hi there,
Yes is it is a system called FraudGuard and MERS that we run to see if you had any interest in properties in the past and research is done to determine what ultimately happened to those properties if they are not included on the credit report or application.

FHA allows foreclosure after 3 years and you shouldn't have a problem with that...

If your home was included in Bankruptcy prior to it being foreclosed, I may have a much better option for you. If you'd like, give me a ring here: 619-379-8999 or [email protected]