FHA and Bankruptcy

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lvalrose

54 Posts

Posted - 02/12/2008 : 06:51:25 AM

Hi all. I have an FHA that got an ACCEPT through the system and is a great loan. the customer had a bk discharged in 2005 which is fine however the lender just denied it because they said his mortgage was part of the bankruptcy?? so what he is still paying it and on time. I dont get how they can do that if they got an accept through the system. anyway does anyone know another lender that wont deny it for this?

lunarhamster

4052 Posts

Posted - 02/12/2008 : 07:00:06 AM

All debts are included when a Bankruptcy is filed.

Usually on a Mortgage and say a Car note, they reaffirm the debt, so they keep paying the way they always did. I would try and get a hold of this guys BK Attorney and find out if something funky went on in regard to the Mortgage. I think the underwriter is WRONG here.

You probably gave a copy of the BK papers and the underwriter saw the Mortgage listed, but so what! it has to be. Unless there is other weirdnesses here I am not aware of, I think they are wrong.

Was it a chapter 7 or a 13? Did they cram down his interest or something? did he pay one cent less on his Mortgage due to the BK?

I had a brw that filed Bk and kept his car, but his bank reported it as BK P/L and he had never missed a payment. I would fight this one.

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