If mortgage payments have not been made or the account has been late in the last 12 months, then a waiting period will be required. FHA requires that at least 36 months from the foreclosure date must have elapsed before a new mortgage could be obtained.
Rodney Mason, NMLS #151088
Sr Loan Officer
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Office: (404) 591-2453
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â€œA Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. Additionally, the borrower must have reestablished good credit or chosen not to incur new credit obligations
The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs. An elapsed period of less than two years, but not less than 12 months, may be acceptable if the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his or her control and has since exhibited a documented ability to manage his or her financial affairs in a responsible manner.
Additionally, the lender must document that the borrowerâ€™s current situation indicates that the events that led to the bankruptcy are not likely to recur.
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrowerâ€™s payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.â€
If a borrower has a bankruptcy that is less than 2 years but more than 12 months old and you want to try for the â€œextenuating circumstancesâ€ provision, keep in mind that many extenuating circumstances which would be acceptable to explain a few late payments will not be good enough to avoid waiting 2 years after a bankruptcy. The extenuating circumstance here must truly be a catastrophic experience, such as the death of a primary wage earner. It also cannot be a situation where the borrower filed a bankruptcy over a small amount of debt that the underwriter might feel they should have toughed out and paid.
For more details or questions please contact me at your convenience.
Fannie Mae has a 3-7 year waiting period based on the circumstances. FHA is the most lenient.
Your circumstance is a little unique. I suggest you speak to a mortgage lender who can ask you all the right questions to determine how long you have to wait. There is too much information to ask and process in this small amount of space on Trulia.
Sally W. Hamby
Senior Mortgage Banker
Fidelity Bank Mortgage
404 644 7696
If she has defaulted and it was an FHA mortgage, HUD has a 36 month waiting period from the date the claim was paid before a new FHA loan can be obtained. There are a lot of variables in this so seeing all of the documentation needed is the only way to give an accurate answer.
1st question is did the house get foreclosed on? or did your ex manage to get back on track with the payments?(if your ex got caught up on the mortgage and is now keeping it in god standing this is probably not an issue)
Next, when did the late payments start? before your divorce was filed or finalized? Did you get a request for legal separation from the courts prior to? did you remove your name from the title in advance of the late payments? (Unless you can prove that all the above questions can be answered with a yes, then you will have to wait until 3 year past the time the bank transfered back the home to their books. In some cases there are many homes that have taken months to years to be returned to the bank after foreclosure has started.)
There are a lot of detailed questions that need to be reviewed before anyone could easily give you a straight yes or no on this question. I'd be happy to review your situation in more detail to inform you of what option you may have or what steps you need to take if you are currently unable to qualify. I just finished 5 other loans in your same situation since October.
I hope that this information has been somewhat helpful. Please call with any other questions.
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339