FHA loan question ch7 without mortgage reaffirm

bigdog

LoanSafe Member
Oct 28, 2012
1
0
0
Ok first post.
A couple of questions. First off i have read several post about people saying that if you didn't reaffirm you mortgage after ch 7 that your waiting period for a loan would be 3 years from the time you give house to bank(forclosure_ etc.)Is this true or does the 2years apply? My question i have is i have been making my payments are current on mortgage, the bank is actually reporting it as current on payment and no notes as to the fact that it was part of my ch7. So will this fact help me in the process? Or should i get them to stop reporting it?

i would think that the FHA guidelines wouldn't encourage a foreclosure just to have you wait to get another loan. I have $15,000 equity in the house and would hate to have to loose that just in order to move. I also don't think it would be right to have to sell it before i would be able to get another house and have to move twice once to a rental then to a new house.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Ok first post.
A couple of questions. First off i have read several post about people saying that if you didn't reaffirm you mortgage after ch 7 that your waiting period for a loan would be 3 years from the time you give house to bank(forclosure_ etc.)Is this true or does the 2years apply? My question i have is i have been making my payments are current on mortgage, the bank is actually reporting it as current on payment and no notes as to the fact that it was part of my ch7. So will this fact help me in the process? Or should i get them to stop reporting it?

i would think that the FHA guidelines wouldn't encourage a foreclosure just to have you wait to get another loan. I have $15,000 equity in the house and would hate to have to loose that just in order to move. I also don't think it would be right to have to sell it before i would be able to get another house and have to move twice once to a rental then to a new house.
Welcome to the forum and thank you for joining.............

In many cases the waiting period is two years, however, some lenders place the three year wait as their requirements. It is a matter of shopping around as under any circumstances where you were obtaining a new loan.

FHA Loan Rules for Borrowers After Filing Bankruptcy

There is a three year wait on a new FHA loan after foreclosure;


  • 3 year wait before being able to get a loan
  • Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit
 

Mom2three2010

LoanSafe Member
Jun 25, 2010
96
1
8
Ok first post.
A couple of questions. First off i have read several post about people saying that if you didn't reaffirm you mortgage after ch 7 that your waiting period for a loan would be 3 years from the time you give house to bank(forclosure_ etc.)Is this true or does the 2years apply? My question i have is i have been making my payments are current on mortgage, the bank is actually reporting it as current on payment and no notes as to the fact that it was part of my ch7. So will this fact help me in the process? Or should i get them to stop reporting it?

i would think that the FHA guidelines wouldn't encourage a foreclosure just to have you wait to get another loan. I have $15,000 equity in the house and would hate to have to loose that just in order to move. I also don't think it would be right to have to sell it before i would be able to get another house and have to move twice once to a rental then to a new house.
We are in the same boat (except we have no equity). One thing I find odd is the fact that you say your mortg reports every month -- don't think that is possible unless you reaffirmed the debt. We did NOT reaffirm our BofA fha loan -- they do not report even tho we pay every month and on our reports it shows as IIB.

Since you say that you have equity your best bet is to sell your current home and then buy another. It's my understanding that you can get a FHA or USDA home loan once your BK has been discharged for 2 yrs. If you can qualify for both loans (current plus new loan) then you won't need to sell your current...if you can't afford to pay both loans then they will say you must sell in order to get a new loan. ETA: The 2 yrs is only if you have NO foreclosure.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,058
162
63
San Diego, California
www.loansreduced.com
Hi Everyone,
This is an older post but I thought I would shed some light that may have changed throughout the time this thread was created.

If you filed Bankruptcy and included your home, when can you refinance that home?
The big thing we look at as a Full Eagle direct lender would be your payment history post bankruptcy. If you included your home (which many homeowners did to protect themselves due to owing more than the home is worth) that doesn't mean you won't have the ability to refinance.

You would have to meet the seasoning periods post BK in order to qualify and we would want to see all payments post BK made on time without any 30 day late payments. At that time we would request the transaction history from your current lender showing proof of payments. We would then manually underwrite the file as the automated system wouldn't detect the presence of the mortgage and the new loan would start reporting on your credit.

Another client of mine spoke to a law office regarding this and stated: "The receptionist at the law office who is very knowledgable, says any refi or new debt would have to be approved by the trustee. Which would only be filing a paper or two with the court, and she says if the payment is lower she didn't think it would be a problem."

I can't validate the above because the new loan could very well have a new trustor & trustee unless the loan is being refinanced through the current institution that holds the new loan.

This is an older post but guidelines change on a daily basis in real estate and thought I would share the update. If you have any further questions I'm always happy to help.