oakum Posted October 27, 2008 Report Share Posted October 27, 2008 I entered a LC in June 08 to purchase a home with a 5yr. balloon. I have a foreclosure from 07 on my credit. I disputed it as the home was awarded to my ex, I never missed a payment to her, she never made a payment to the bank or ever refinanced as per agreement. 7yrs of baddies... bada-boom. I've settled all the unsecured debts from the divorce and a home equity loan. I wasn't able to get them to agree to remove or report as favorably as I'd like. But they are "paid as agreed" and not doing any more harm. My score has improved. Everything that was solely in my ex's name has been removed as well.I've read that FM&FM has upped it's foreclosure time limit to 4 yrs from 3 to get a mortgage w/ FC reported. I have 5yrs till the balance is due. I have read that banks will refi LC after 1 yr with proof of timely payment. I'm not so confident in that, but am that I could get some financing in 4. Downpayment: I'm in the home now, I'm making payments. I put up $50K on a $350k purchase. Will I be looking at having to make a 20% downstroke on a refi with a bank for the remaining balance at 5 yrs (approx $275k) because of the FC? Or will I liking have to make no downpayment due to the previous intrest in the property? Will I qualify for FHA? Can I accelorate the process or should I? I'm currently paying only 6% on the LC. (not too shabby)I know that MANY changes could occur in these yrs ahead but how would this have played out BB (before bubble)?Thanks Link to comment Share on other sites More sharing options...
Goose123 Posted October 27, 2008 Report Share Posted October 27, 2008 If you can prove what caused the foreclosure, you have a good case for extenuating circumstances. This is the last update from Fannie Mae that I have seen regarding time frame.https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdfYou can get 90% 3 years out now.Lenders start counting from the redemption date, not the date on the CR. That is the date the original creditor got their money. You can usually find that info online. It is when they sold the property.Good luck, it sounds like you are on the right track. Link to comment Share on other sites More sharing options...
firstsource Posted October 28, 2008 Report Share Posted October 28, 2008 It is so hard to figure out what the changes will be in the next few years, I would suggest that as soon as you can get approved in a loan program through a lender/bank/etc, that is what I would do. These programs are changing fairly rapidly at this time.I would write a letter explaining the situation and see if you can get an FHA loan. Currently the waiting period is 3 years, but I have seen loans happen after 1 year, as long as the rest of the current credit history looks good.Charles Link to comment Share on other sites More sharing options...
oakum Posted October 28, 2008 Author Report Share Posted October 28, 2008 The extenuating circumstances would go something along these lines. Ex was awarded the home along with the debt, signed indemnification/hold harmless clause, agreed to refinance in 30 mos, was paid alimony to cover mortgage. Alimony and CP was always paid and current. I was informed of the default after 90 days, on the eve of entering foreclosure. I read in there that a FICO of 680 was needed? Ouch! how do I get that with a FC on my CR???I was renting and would have continued to rent until the SOL ran out but had to take custody of my children and needed a home in a good school district, they are both autistic. Is this informatiion relevant to a prospective lender or just a sob story? Is it part of the extenuating circs?Does having an LC help, or past home ownership? I've owned a home since I was 22. Thanks Link to comment Share on other sites More sharing options...
Goose123 Posted October 29, 2008 Report Share Posted October 29, 2008 I would say you have a good shot at an FHA loan with that explanation, but I am not an Underwriter. They will look at your entire credit report. Hopefully your score is over 580, and the only issue is the foreclosure. If there are other issues, use the help of people on this forum to fix it before you apply somewhere.Good Luck, Link to comment Share on other sites More sharing options...
oakum Posted October 30, 2008 Author Report Share Posted October 30, 2008 I do have other baddies on my CR, but they have all been settled and paid as agreed, they just show a history during the last 2 years of my marriage and the months after of late payments, over limit spending and defaults. I don't think that that is an uncommon pattern during a divorce, but it's less than desireable. I only have a car lease right now and that has been current for the past 8 months.I read this forum quite often. Not sure how to remove any of that history, not sure it's even possible. it's not like it didn't happen. Link to comment Share on other sites More sharing options...
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