Mortgage After Dil In Washington State

Celticwalker

LoanSafe Member
Mar 22, 2012
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I'm looking to purchase my next house. With a DIL foreclosure - which appears to have concluded on December 6th of 2014 (the county records are difficult to translate to be sure), and plans on relocating to the other side of the state, I'm needing to make sure that all of my ducks are in a row so that we can get pre-qualified for a loan. Our credit scores have rebounded into the 720+ neighborhood, job situation is very stable and the money coming in from the employment is pretty, darn healthy.

With everything looking like it's going in the right direction, I really just want to make sure that we're not missing something which is going to prevent looking for a house at the end of this year/beginning of next. Any suggestions on what we could be doing to make sure we're on the right track to put us in our new house?

Any help, suggestion or advice will be appreciated!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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There are portfolio products that will allow you to finance a home with 10% down 2 years after an economic event assuming it was the only event that occurred. If there were multiple events, 15% down may be a required, reserve requirements may be 3-6 months depending on the loan program.

If you're concerned about the home values increasing dramatically and have a situation where you could fit the criteria above, it will allow you to bridge that gap before being able to qualify for a Government, Conventional or Jumbo home loan.

I am licensed in the state of Washington, actually 44 states nationwide I have the ability to help homeowners in. If you want to determine whether or not you'll qualify for one of those, the timetables below which I'm assuming you already know would apply:

DIL of Foreclosure occurred 12/06/14
Conventional - 4 year period (assuming there isn't an extenuating circumstance)
FHA - 3 year waiting period (assuming there isn't an extenuating circumstance)
VA - 2 year waiting period

The debt to income ratio requirement for each of these products vary and of course VA & FHA will be the first available options. That is something we would look at to determine how much you would qualify among many other factors. Sourcing down payment, etc.

If there was a 2nd mortgage involved with the DIL that can cause problems in some cases, if that's the case we would want to provide a satisfaction letter and depending upon when that occurred would also cause additional waiting periods. I would say a smart time to officially start the mortgage process November would be good HOWEVER you do not want to obtain an accepted offer until after the seasoning is complete 3 years as an FHA case number is assigned to a property and must be beyond that timeframe.

Also would be more than happy to go over figures to determine potential eligibility anytime with you without pulling credit.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
I would love that, my personal e-mail is [email protected] 619-379-8999. One thing to remember is 55% back end DTI with FHA (Which is great), add up your liabilities and potential mortgage payment vs. your income.
 

Celticwalker

LoanSafe Member
Mar 22, 2012
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3
Some updates. Apparently it was not a DIL. It was a Deed of Trust Sale. So...there's that. However, it was an FHA backed mortgage. Upon going to the King County Assessor's site, I found where BoA sold the house back to HUD to cover the insurance. The date on the document, and on the King County Assessors site was 12/19/14 - however BoA apparently didn't get it recorded and stamped with the County until 2/4/16. The signatures on the Statutory Warranty Deed is 12/19/14 and shows the transfer of the property at that time with notorized signatures. My question is this: Since it was an FHA loan, there will be a CAIVRS note with FHA - I get that. However, is the signature date of 12/19 the date which the 36 months is based off of for removal from CAIVRS or is it the 2/4/16 date of when BoA filed it with the county? Research I've done would suggest that the 12/19 date is the legally binding date - but I wanted to be sure. Any thoughts?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
I'm going to check on this for you and let you know - I was out on a conference the majority of the week last week and just now catching up. Standby for a response I am going to check with my legal & underwriting team.
 
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Celticwalker

LoanSafe Member
Mar 22, 2012
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I'm going to check on this for you and let you know - I was out on a conference the majority of the week last week and just now catching up. Standby for a response I am going to check with my legal & underwriting team.
Thanks tons Erik. It's getting close for us to start the process, and any assistance or guidance is appreciated!
 

Celticwalker

LoanSafe Member
Mar 22, 2012
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I called HUD, and both myself and my other half are not in CAIVRS for anything being paid out by HUD to the bank according to them - so good news right? I hope that you'll have a better time figuring out if FHA is going to use the document date recorded on the King County Assessor's site of 11/26/14 (when MTC Financial sold the house back to BOA and relieved us of the property), the date that it was filed, or the 12/19/14 date when BOA sold the property to HUD. This is all so confusing.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
FHA will need to confirm the date that CAIVRS will be clear. When CAIVRS is pulled, there will be a phone number to call to verify this. This is if you're going to pursue an FHA loan. If you're going to be pursuing a conventional loan we go with when the DIL was completed (or deed of trust sale) / (Transfer of ownership)

Does that help answer your question?
 

Celticwalker

LoanSafe Member
Mar 22, 2012
16
1
3
FHA will need to confirm the date that CAIVRS will be clear. When CAIVRS is pulled, there will be a phone number to call to verify this. This is if you're going to pursue an FHA loan. If you're going to be pursuing a conventional loan we go with when the DIL was completed (or deed of trust sale) / (Transfer of ownership)

Does that help answer your question?
It makes it much easier to understand! Given that we would like to start looking for our house as soon as the seasoning on the foreclosure is complete, should I look to contact you to look into starting the process and pre-approval for a 30yr fixed FHA loan mid-November? I don't want to jump the shark.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
Absolutely, it's always better to get started earlier than later. We can figure out what stones we might need to turn over prior to you going home shopping...it's easier to do it that way than in the middle of the loan process which can be stressful as it is. Keep my e-mail with you: [email protected] and 619-379-8999 is my direct/cell number.
 

Celticwalker

LoanSafe Member
Mar 22, 2012
16
1
3
Absolutely, it's always better to get started earlier than later. We can figure out what stones we might need to turn over prior to you going home shopping...it's easier to do it that way than in the middle of the loan process which can be stressful as it is. Keep my e-mail with you: [email protected] and 619-379-8999 is my direct/cell number.
Thanks again Erik! Look for a call mid-November!
 
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Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
Hey Celtic,
Did you by chance reach out to me regarding the CAIVRS? I had someone reach out to me about it and sent information which in turn we have sent back into underwriting. I wasn't sure if it was yours, if it's not yours we can look up your information in FHA connection to see what it's saying in regards to CAIVRS.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
Anytime, Hey Gregg - I just got off the phone with FHA and e-mailed you the information I was given from them.