Profile picture for user039329

When will I be able to buy a home again?

I had a foreclosure on 12/10 on my first mortgage, and a charge off on a second mortgage on 3/11 (which was my down payment FHA). I have the down payment of 3.5% now, so do not need the assistance again. Which date do I go by when I will be eligible to buy again?
  • April 03 2012 - Sacramento
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Answers (4)

It doesn't sound like your second mortgage was a mortgage at all. Was it a mortgage secured by the property or an unsecured loan that you used for the down payment?

If it was in fact a mortgage you would have to use the 3/11 date, depending on how it is all reported on your credit report. If it was unsecured you would go by the foreclosure transfer date on the first to determine your waiting period for whatever program you are going to apply for.

Sincerely,
Greg
  • April 04 2012
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Profile picture for Appraisal guy
Many say two to three years after everything is said and done. Look at it this way. If you are now making good money and your debt ratio is low and you are paying your bills now, the bank should want to give you a lown. Not sure though. Call some banks and see what they say.
  • April 04 2012
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The truth is there is no consistency on this question.  I've seen underwriters use several different dates to start the three year clock.  Here are just a few scenarios that muddy the issue:  The buyer signs a "deed in lieu" but the bank never records it.  The 2nd forecloses, but the 1st waits for months – or even years before they foreclose.  A person in bankruptcy gives-up the property, but the bank takes 6 months or more to actually take title.  Then you have FHA that uses the date THEY disposed of the property which could be 6 months to a year AFTER they foreclose. 

It isn't always as clear-cut as you think it should be, and the truth is different investors have different interpretations of how this all works.  I've even then I heard of files being rejected by the investors because they decided to take a different view of things.  (How do you think that impacts the next file to be underwritten – or the file that is pre-approved but not in contract yet?) The best advice I can give is to speak with you lender and make sure they run the file all the way to underwriting.

  • April 04 2012
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Profile picture for Joseph F Moore
Typically you would go off the foreclosure date, but mortgage underwriting requirements and guidelines are always changing.

Talk to a qualified mortgage banker in your area and they will be able to assist you in determining your options.

Best of luck!
  • April 03 2012
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