finding a loan

2 years ago our house, ( my wife bought it before we were married) came down with mold. Long story short we couldn't live in it and the insurance company wouldn't pay more than 10% of the repair  estimates. We walked away. We negotiated a deed in lieu with BOA who hasn't executed the documents we signed over a year ago. My wife earns nearly 100k and I bring in about 22 in addition to my mr mom duties. Her credit is poor now while mine is still 790.  We are renting in Michigan where homes are essentially free, and paying nearly 1000 a month. How do we get a loan here?!?! We have a a sizable down payment, and our payment history is flawless, save for the house we no longer own but still technically have a mortgage for; we singed the deed to them over 2 years ago. We can pay for a home, what can we do?
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March 29 2012 - Belleville
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Answers (4)

Chris, Based on what you've described, I don't have enough information to provide any real direction.  I would really recommend that you make an appointment with a mortgage broker or mortgage banker who is local to you & have them pull your credit to review how the information is being reported.  Best of luck!
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April 12 2012
Thanks for the replies.
Jason,
 In answer to your question, B of A is listed as a credit injury right now, but the house still shows up as an account on that part of the report. There was nothing specific in the injury section, nor did it say the account was defaulted in open accounts report part. Is it possible to get a loan while the account is still unsettled?

Becky,
    I'm unclear about the extenuating circumstances letter. Is this something that I should ask B of A for, or is it something that we put together ourselves, including documents, mold reports, insurance payout policies etc. What would you say the key elements to establishing our ability to pay are, out side of debt to equity.

Thank you both very much for your time
Chris

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April 10 2012

How is the B of A loan being reported on your wife's credit report currently?

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March 29 2012
I've had customers in similar situations -- due to unavoidable reasons, they defaulted on a previous home, and now they're in the market for a new home.

When you apply for a loan, your lender will most likely ask for an extenuating circumstances letter.  This letter needs to clearly explain what happened before, why your situation is different now, and make a good case that you are, in fact, a good risk for the lender, even though you previously defaulted on an agreement with a lender.

Establishing the ability to pay will be the key.

It is possible.  Give it a try.
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March 29 2012
 
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