Hi wendie, thanks for providing the additional information. In the future, just so you know, responding right under where we replied does not notify us that you replied. You should just post something new under the "Help the community by answering this question:" spot, as we all get notifications that way.
Anyway... you said it's a mortgage that was included in a Ch 7 BK that was discharged just under 4 years ago. If that is the case, then I suspect you are trying to qualify for an FHA loan and not a Fannie Mae conventional loan, is that correct? The reason I suspect that is because Fannie Mae needs 4 years on a Ch 7 BK discharge (unless due to extenuating circumstances, then just 2 years is needed). DesktopUnderwriter (DU) is still used when running automated underwriting for an FHA loan (Freddie Mac's LoanProspector, LP for short, can also be used). FHA just needs 2 years on a Ch 7 BK, but 3 years on a foreclosure (but 1 year on each can be OK if due to extenuating circumstances). So what happened with the mortgage that was included in BK? Was it eventually foreclosed on or are payments still being made this very day? That is information that is needed.
If it was foreclosed on, then nothing needs to be paid off because nothing is owing. If it's still being paid on, then it can still be OK as long as you & your sister's income still qualifies when considering its mortgage payment. If it's not foreclosed on yet, and the payments aren't being made, then that can be an issue because technically the foreclosure activity hasn't occurred (a mortgage included in Ch 7 BK discharge relieves you from owing the debt, but it doesn't mark the foreclosure date).
Your loan officer may be a pretty smart cookie, and part of the issue could be that its stating it's in your name instead of your sister's name, but I think there could be more to this then you are being told.
I know you don't know me, but click on my picture (or profile link below) and read the testimonials my colleagues & past clients have given me. If you'd like I can review the already checked credit report & DU findings and try to help you figure this out. Like John Burke said (hey John!) it may have been the way that the application information was entered into DU.... more
You got a lot of GREAT info from other posters. I would ask the same question "who told you that and why?" It may or not be true. All I can tell you is how I would approach it and you can go from there. I believe local is better in many cases. I have closed loans in different states and there are MANY quirks and just little different things from state to state, county to county and even city to city. Even in a small state like MD. I can write loans in eight states VA being one of them. I do enough VA business that I am comfortable but there are differences between MD and VA that are important. But if my bank was suddenly licensed in CA that would be totally different for me and it would make me nervous. I know nothing about loans in that state. Not that I couldn't do it but someone local would have the edge on me in many ways. Like Shane. One good thing about using the realtors agent, they are accountable to said agent to come thru and close on time. One bad thing, there are real estate companies that push and push hard to get their agents to refer to their preferred title company, in house lender and even insurance company. I have had agents tell me they get pressured and incentivized to do so. One of my former companies paid us to use the preferred title company. I never did by the way I didn't think they did a good job and used my own. So no matter what you hear it DOES happen. I also would ask for recommendations from the loan officer. I would also Google their name and see what pops up as well. I do this when I don't know a person or company that I am dealing with now. Also important is whether they are a broker or a direct lender. Do they have an UW there on site to make the decisions? Trust me that is HUGE. I was a mortgage broker for seven years and a mortgage banker for just over one year. There is no comparison to which one is better for my clients. I never knew how the other half lived. Then is also comes down to just the personality of you and the loan officer. Some click, some don't . Talk to 2-3 local loan officers and see which one has the best program, rate and track record. The rates are all in the same range and so are the fees for the most part. So again it boils down to who is willing to work hard and close on time. We all say we can and will do that but how do YOU KNOW. That's why I Google. Anyway hope this helped and please let me know if I can be of service.
well i don't think so. you visa status is nothing to do with your buying. loan is for the house and they check your credit etc... but as a visa holder i can tell you, shop around and find the intrest rate instead sticking to one....... more