Loan After Bk, Paying To Stay

[Martin2003]

Filed BK7 in 2008, discharged in 2009, did not reaffirm mortgage. Looking to relocate to a different state. Spoke to a lender and they would not do a mortgage loan because they said we have no disposition on our current home. Suggested that we foreclose or reaffirm. Reaffirm is out of the question. We don't want to foreclose until we purchase another home. We can qualify for both homes. I don't understand the lender reason.

 

[Martin2003]

Also missed a payment January 2014 and forgot about it. Made monthly payments from February 2014 untilike now. Made 2 payments in August 2015, after realizing missed payment January 2014. Another lender said we have to wait until July 2015 to qualify for mortgage.

 

[Erik Sandstrom]

Hi Martin,
It sounds to me like you have payment history issues, I'm extremely familiar with this topic as I deal with new home financing with properties included in BK that ultimately foreclosed or short sold or people that want to buy the day out of foreclosure. These are the types of loans that I specialize in.

Here are the questions that I would have:

1. Are you current on the home or do you have a rolling delinquency?
2. How many payments are you more than 30 days past due in the past year?
3. What are your intentions with your current property (be careful when you answer this question, think of what a bank would or wouldn't want to hear).

I would also like to point out something that someone told you to do which is let the property go to foreclosure. Don't do this. Even though you included your property in bankruptcy it will hinder your ability to lend on another property if you let that one go for at least 3 years. FHA would be 3 years, Conventional would be 7. Why? Because you basically showed that you wanted to stay in the property even though you included it in the bankruptcy by continuing to pay (essentially re-affirming the debt).

Hopefully this helps clear up any questions you may have and if you want to talk with someone that's extremely knowledgeable about this situation please don't hesitate to reach out to me via e-mail at: [email protected] or by phone at 619-379-8999.

 

[Martin2003]

1. Are you current on the home or do you have a rolling delinquency? Current. There was a rolling delinquency that ended August 2015.

2. How many payments are you more than 30 days past due in the past year? First payment missed January 2014. Monthly payments were made until August 2015, at which time 2 payments were made. I never thought much about it because I had not planned on moving. So is that considered 7? I thought I had read that a rolling delinquency would be counted as 1 or 2.

3. What are your intentions with your current property (be careful when you answer this question, think of what a bank would or wouldn't want to hear)?

We hope to sell it, if the market gets a huge spike in market value. We know our options are to sell, deed in lieu or foreclose.

Mortgage company can't provide a Verification of Mortgage, but I am able to get a payment history. I can also show baking statements that reflect monthly payments.

 

[troubleinriverside]

I'm going to follow this thread because I'm in somewhat of the same situation. I want to retire and relocate to Arizona in a couple of years or sooner and buy a house there. I had a bankruptcy in January 2010. Did not reaffirm 1st or 2nd. Never late on 1st but stopped paying 2nd and have never heard from them. both Loans in my name only . Plan is to sell this place and move to Bullhead city or Phoenix area. my pension plan will offer Lump Sum payouts this year so I will have several hundred thousand dollars to play with if I take the retirement that way.

 

[Erik Sandstrom]

Alright so Martin, based off your responses here is what we would need to document and this would be something we would want to send into physical underwriting before you go home shopping.

Of course you included the home in bankruptcy, you missed payments then caught back up - what I don't understand at this point is if you're completely current or if you do still have a rolling delinquency. Did you make up the payments because you were trying to obtain a more affordable payment via a modification but they failed to offer you one?

This sounds like it's a scenario I can work with, it may be something that would need to fit into our portfolio box and I would guess that the property would need to be dispositioned (ie: foreclosed) or you showing your intention to stay and possibly sell later.

If you are 12 months clean on the payment history we can possibly try and qualify for a traditional mortgage as you do meet the bankruptcy seasoning periods and you mentioned that you are able to qualify holding both payments. We can show that your renting the property (or going to through a lease, deposit...etc) which would alleviate any concerns of buy and bail.
Feel free to give me a call if you want to talk more about a couple different options. If you don't qualify for the traditional product, we have what's called a waterfall where we have to make sure you don't qualify and then can offer our portfolio program.

 

[Martin2003]

Alright so Martin, based off your responses here is what we would need to document and this would be something we would want to send into physical underwriting before you go home shopping.

Of course you included the home in bankruptcy, you missed payments then caught back up - what I don't understand at this point is if you're completely current or if you do still have a rolling delinquency. Did you make up the payments because you were trying to obtain a more affordable payment via a modification but they failed to offer you one?

This sounds like it's a scenario I can work with, it may be something that would need to fit into our portfolio box and I would guess that the property would need to be dispositioned (ie: foreclosed) or you showing your intention to stay and possibly sell later.

If you are 12 months clean on the payment history we can possibly try and qualify for a traditional mortgage as you do meet the bankruptcy seasoning periods and you mentioned that you are able to qualify holding both payments. We can show that your renting the property (or going to through a lease, deposit...etc) which would alleviate any concerns of buy and bail.
Feel free to give me a call if you want to talk more about a couple different options. If you don't qualify for the traditional product, we have what's called a waterfall where we have to make sure you don't qualify and then can offer our portfolio program.

Hi Erik.

Alright so Martin, based off your responses here is what we would need to document and this would be something we would want to send into physical underwriting before you go home shopping.

Of course you included the home in bankruptcy, you missed payments then caught back up - what I don't understand at this point is if you're completely current or if you do still have a rolling delinquency. Did you make up the payments because you were trying to obtain a more affordable payment via a modification but they failed to offer you one?

This sounds like it's a scenario I can work with, it may be something that would need to fit into our portfolio box and I would guess that the property would need to be dispositioned (ie: foreclosed) or you showing your intention to stay and possibly sell later.

If you are 12 months clean on the payment history we can possibly try and qualify for a traditional mortgage as you do meet the bankruptcy seasoning periods and you mentioned that you are able to qualify holding both payments. We can show that your renting the property (or going to through a lease, deposit...etc) which would alleviate any concerns of buy and bail.
Feel free to give me a call if you want to talk more about a couple different options. If you don't qualify for the traditional product, we have what's called a waterfall where we have to make sure you don't qualify and then can offer our portfolio program.

Hi Erik.

We are current on the payments. The payment was made up August 2015 because I was told that only 1 payment could be late in a 12 month period. We intend to stay and possibly sell later.

 

[Erik Sandstrom]

I would say let's try and obtain a traditional loan! Seems to me like you would meet the criteria to be honest.

 

[Martin2003]

I will send you an email to confirm you have all the information in order to fully understand.

 

[Erik Sandstrom]

I'm pretty sure I responded to your e-mail, just making sure I did. If I haven't feel free to give me a call at 619-379-8999.

 

[Martin2003]

I responded back.

 

[Martin2003]

I responded back.

If anyone followed this thread, we bought and closed on our house in July 2016. You rock, Erik Sandstrom.