2017 Mortgage After Bankruptcy And Foreclosure

2017 Conventional Loan Guidelines
2017 Conventional Loan Guidelines
February 28, 2017
2017 FHA Versus Conventional Loans
2017 FHA Versus Conventional Loans
March 2, 2017
2017 Mortgage After Bankruptcy And Foreclosure

2017 Mortgage After Bankruptcy And Foreclosure: Don’t Worry Too Much

If there is one thing that occurred more in the last decade than in years past was the filing of bankruptcies, short sales, and foreclosures.  If you ran into this type of situation, I can guarantee you that you are not alone when it comes to falling on hard times.  The Great Recession hit nearly everyone hard and for those who lost their jobs, saw their ARM mortgages increase, or simply couldn’t afford their home anymore there is definite light for you at the end of the tunnel.  These things happen and if you have learned from your mistakes there is no reason why you can’t go ahead and own a home again.  If you were part of the unfortunate group who claimed Chapter 7 or Chapter 13 Bankruptcy, sold their home through a Short Sale, or let their house get foreclosed on, your credit has surely been hit quite hard.  Now in the months and years since this has happened, if you have worked at repairing your credit, I am sure your FICO scores have hopefully increased into the 600’s or at least the upper 500’s.  If this is the case, then you could be looking at the possibility of finding a loan program that can work for you and you can become a homeowner yet again by following my 2017 Mortgage After Bankruptcy And Foreclosure.

Since your recent derogatory credit item has taken place, I would hope you have done all you can to put your best foot forward and work to get your credit scores increased.  You can accomplish this by making all monthly debt payments on time, applying for a couple secured credit cards of at least $500 each which can increase your score 10-20 points each, or you can even look to becoming an authorized user on a direct family members credit card which will allow all of their positive credit history to now be on your history as well.  If you aren’t sure if you are making the right decisions, please reach out and we can work on getting you going in the right direction.

2017 Mortgage After Bankruptcy And Foreclosure: No Lender Overlays

Here at Loan Consultants  we do our best to lend to the minimum loan guidelines no matter the product whether it be FHA, Conventional, VA, or USDA.  We are looking to do what’s right for our borrowers and we can get this accomplished by not having Lender Overlays.  If you don’t know what Lender Overlays are they are additional guidelines that need to be qualified for above and beyond the minimum guidelines as published by the loan program.  If you are looking to get an FHA Loan which we all know requires a 580 FICO and the lender you are working with is demanding at least a 620 or even 640 FICO, you need to seriously consider who you are doing business with.  If you have already gotten a denial from other lenders or if you are not comfortable with your current lender then you need to reach out to me ASAP at 888-900-1020 or email me at contact@loanconsultants.org and we can go over options that will work for you!

2017 Mortgage After Bankruptcy And Foreclosure: Types Of Derogatory Items

Chapter 7 Bankruptcy: This is also called total liquidation bankruptcy because you are showing that you do not have the funds needed to pay your debts and as a result all your debt obligations are wiped clean and you will not be forced to pay.  This may have the most significant impact on your credit scores and you are also prevented from claiming this again for at least 7 more years.

Chapter 13 Bankruptcy: Chapter 13 Bankruptcy unlike Chapter 7 requires you to go on a repayment plan which is normally 36-60 months in duration.  After filing for Chapter 13, a trustee will be assigned to you who will work with your creditors to determine an income based repayment plan you can afford.  After the repayment term is complete your remaining debt will be forgiven.

Short Sale: This is a situation where you negotiate with your current lender to allow you to sell your home for less than what is owed on it.  This was a very popular situation during the Great recession as home values drastically dropped leaving a lot of borrowers underwater on their loans.  For hard hit areas, homes that were worth in excess of $400,000 were being allowed to go through short sale for well under $200,000.  The remaining amount owed on the home is forgiven.

Foreclosure: This occurs when you stop paying the mortgage on your home and you “walk away” from the home.  What fueled the Great Recession was borrowers who had their ARM mortgages adjust and saw their teaser rate increase significantly to an amount they couldn’t afford the mortgage payment anymore.  Borrowers would live in their home while not paying until the bank took back ownership of the home and they were forced to move.  During the Great Recession this could mean living in your home for well over a year before you had to get out as there was an abundance of foreclosures to process.

2017 Mortgage After Bankruptcy And Foreclosure: FHA Loans

One of the most lenient loan programs out there to get a 2017 Mortgage After Bankruptcy And Foreclosure has to be the FHA Loan when it comes to waiting periods after derogatory items and credit scores needed to secure a loan.  The FHA or Federal Hosuing Administration is not a mortgage lender, but insures loans that are written to the guidelines that they approve.  With FHA Loans being government loans, you can normally get a very low mortgage rate when compared to a lot of other programs out there.  In terms of a 2017 Mortgage After Bankruptcy And Foreclosure you can expect to see the following from an FHA Loan:

  • Chapter 7 Bankruptcy: 2 Year Waiting Period After Discharge Date
  • Chapter 13 Bankruptcy: No waiting period if you are currently up to date on your repayment plan and have at least 12 timely payments made and trustee approval.  You can also get a loan the day after discharge with trustee approval.  If you are not looking for a trustee approval, you have a 2 Year Waiting Period After Discharge Date.
  • Short Sale: 3 Year Waiting Period after the recorded date and execution of the Short Sale via your HUD-1 Settlement Document.
  • Deed-In-Lieu of Foreclosure: 3 Year Waiting Period after the recorded date or sheriff’s sale.
  • Foreclosure: 7 Year Waiting Period after the recorded date or sheriff’s sale.

2017 Mortgage After Bankruptcy And Foreclosure: Conventional Loan

When you are in search of your 2017 Mortgage After Bankruptcy And Foreclosure and you come across a Conventional Loan, you need to know that you can get this loan, but the guidelines are a little more strict to get your deal done.  First of all you will need at least a 620 FICO score as well as some longer waiting periods than with FHA Loans.  However, if you are trying to take advantage of Conventional Loan qualities then this is the right place for you.

  • Chapter 7 Bankruptcy: 4 Year Waiting Period after Discharge Date
  • Chapter 13 Bankruptcy: 2 Year Waiting Period after Discharge Date or 4 Year Waiting Period after Dismissal Date.  A Chapter 13 Dismissal is when you are not following the order of the trustee and your bankruptcy is voided allowing creditors to immediately start collection actions for the debt you owe them.
  • Short Sale: 4 Year Waiting Period after the recorded date and execution of the Short Sale via your HUD-1 Settlement Document.
  • Deed-In-Lieu of Foreclosure: 4 Year Waiting Period after the recorded date or sheriff’s sale.
  • Foreclosure: 7 Year Waiting Period after the recorded date or sheriff’s sale.

2017 Mortgage After Bankruptcy And Foreclosure: VA Loan

If you are able to qualify for VA Loan then a 2017 Mortgage After Bankruptcy And Foreclosure should be a definite option for you if you know all the positives associated with VA Loans and how they are better than most loan guidelines out there.  How VA Loans treat derogatory items may be somewhat similar to that of FHA, but there are plenty of other features that make a VA Loan the best choice if you can qualify.  VA Loans can be had with a 580 FICO score, no down payment, and 100% financing options for a loan program that has had the lowest mortgage rates for the last 3 years running.  Now in terms of a 2017 Mortgage After Bankruptcy And Foreclosure you will need to follow these guidelines:

  • Chapter 7 Bankruptcy: 2 Year Waiting Period After Discharge Date
  • Chapter 13 Bankruptcy: No waiting period if you are currently up to date on your repayment plan and have at least 12 timely payments made and trustee approval.  You can also get a loan the day after discharge with trustee approval.  If you are not looking for a trustee approval, you have a 2 Year Waiting Period After Discharge Date.
  • Short Sale: 2 Year Waiting Period after the recorded date and execution of the Short Sale via your HUD-1 Settlement Document.
  • Deed-In-Lieu of Foreclosure: 2 Year Waiting Period after the recorded date or sheriff’s sale.
  • Foreclosure: 2 Year Waiting Period after the recorded date or sheriff’s sale.

2017 Mortgage After Bankruptcy And Foreclosure: Making The Right Choice

You could possibly be overwhelmed with guidelines from this post and you still may not be 100% certain if you can qualify for a loan, well if you pick up the phone and give me a quick call we can know fairly quickly by just answering a handful of questions if you can qualify and for what program.  There are definite positive aspects to all of the loans listed and some people will prefer one program over the next and that is entirely up to them.  We just want to make sure that at Loan Consultants we are able to lend to the minimum guidelines of EVERY loan program and ensure you will not have Lender Overlays in your way of getting a loan.  Like I said earlier, we all go through hard times, but if you have bounced back and have gotten your credit in order, there is no reason you shouldn’t get a loan.  Give us a call today at 888-900-1020 and let’s get you on the path to owning a home again.

Loan Consultants
Loan Consultants
you want the most professional and educated group in the business you will choose Loan Consultants. With decades of experience in the mortgage industry, we can get you a loan when everyone else has told you “no.” We have excellent programs that we use with the goal of getting you into the house of your dreams. Call us at 888-900-1020!

Leave a Reply

Your email address will not be published. Required fields are marked *