22mths BK, 630midGA, 90%ltv, o/o, purchase

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chukamog

137 Posts

Posted - 09/03/2008 : 09:32:51 AM

LOOKING FOR HELP! 22months BK(chapt. 7), ga, 90%ltv, o/o, purchase. can FHA do this loan?

EquitySmart

1240 Posts

Posted - 09/03/2008 : 2:46:55 PM

The FHA underwriting guidelines clearly indicate you can only get an exception to the 3 year requirement if the foreclosure was the result of extenuating circumstances (beyond the borrowers control) and the file includes documentation of the circumstances. No exceptions will be made for borrowers with foreclosure within the past 12 months or foreclosure of FHA or VA loans, regardless of extenuating circumstances.

You will need to have the borrower send you documenation proving the foreclosure was impossible to avoid by any reasonable person with good credit history. If this is not possible, then the borrower will need to wait until 3 years after foreclosure.

chukamog

137 Posts

Posted - 09/03/2008 : 5:27:52 PM

quote:
Originally posted by chukamog

LOOKING FOR HELP! 2yr foreclosure, ga, 90%ltv, o/o, purchase. can FHA do this loan? i know they want 3yrs.

the borrower said that he lost his job, and his wife was pregnant at the time. what kind of documentation will i have to get? can he do a conventional loan?

Mandyvilla

3405 Posts

Posted - 09/12/2008 : 9:04:12 PM

Forget conventional. You are going to have to document his story. First, make sure the BK papers match his story. Check the debts discharged and verify there were medical bills. If there was no insurance and he was unemployed, she would have quite likely been eligible for medicaid. A bunch of revolving credit cards and personal loans won't help. Be sure to explain they can bare their souls and still have a rejection. I would recommend a 60 day close for 24 months at the time of close and see if you can find someone to underwrite the loan w/out a property.

This is the kind of deal that ruins lives when it blows up at the last minute.

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