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I am on the deed but not on the loan that was foreclosed can I still be approved for a mortgage?

My wife and I have recently gone through a foreclosure on our home. My wife was on the loan and I was not. However we were both on the deed. We want to buy a new home. Now I am the only income in the home and would like to get a mortgage for a new home. I have heard that an underwriter can turn me down if I show up in the public records search as having been on the deed of a home that was foreclosed on. Is this true?

  • March 18 2014 - Indianapolis
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Answers (3)

Best Answer

Hello,

    Yes unfortunately they will consider you with a foreclosure because of being on the deed.  There are programs out there now that help people 1 day after a foreclosure or a BK.  They call it a fresh start program at this branch, but usually requires a big down payment (25%).  Good for strategic BK's and foreclosures.  If that is not possible you will be looking at around 2yrs before you can purchase again.

Keep your head up,
my best,

Aaron~

  • March 18 2014
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Not a smart move my friend. The first thing I tell all my clients is to recession proof yourself. Never-EVER finance with your spouse unless absolutely necessary. Why? Man that is simple. If one of your goes sideways for any reason, it takes both of you down. Whereas if you keep your finances (especially a  mortgage) separate, the other spouse is protected and they can go on and qualify on their own for a mortgage.

As explained down below, it doesn't matter that you were not on the loan. Your spouse deeded you on, thus making you an "Owner" and as such your name is now listed on the hallows of history as been foreclosed on. Now you may find yourself a crooked Loan Officer out there who might get the deal through, but if you deliberately neglect to declare your previous Foreclosure on a Loan Application, that is considered Loan Fraud and Heaven help you if you get caught. 

The Loan Officer can most likely claim ignorance, but you can't. Now, having said that, there are some programs available to you out there that will allow for your previous foreclosure and still get an approval. Your options are few but some do exist, you just need to be in the hands of a capable, experienced Loan Officer.

Best of Luck!
  • March 18 2014
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Most lenders will still view the foreclosure as part of your past, even though it may not show up in your credit history. So most underwriters will treat you as if you have gone through a foreclosure even if you were only on the deed. This means that you will have to sit through a waiting period of around 3 years before you can obtain another mortgage. There are also exceptions where you can obtain a mortgage 1 year after the foreclosure depending on your circumstances or if you had a financial hardship such as unemployment that reduced your income. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • March 18 2014
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