foreclosure

[freshstart10]

i just read an article stating that a short sale or foreclosures stay on your credit report for up to 10 years. but is stated that a bk wipes those clean.

does that mean if i give up my house in chapter 7 it wont show as foreclosure, just as bk?

anyone know for sure?

[StartingOver08]

Yes, that is what it means.

[freshstart10]

thank you,

so does that mean if i walk from my house after bk i would only have to wait 2 years to apply fha and not the 3 years?

[StartingOver08]

FHA is changing their underwriting criteria regularly. I don't know what it will be in the future. But if you have proof of payments on time after BK (late payment after BK are a killer for any mtg) and have re-established your credit with at least 4 tradelines you should be able to get a mortgage. The question becomes, what will the underwriting criteria be two years from now?

[freshstart10]

thanks
hopefully it will stay 2 years, iknow some conventional lenders are if u have 680 u can do it anytime after bk, but under 680 needs 4 years and nice down payment

[fltoo]

thank you,

so does that mean if i walk from my house after bk i would only have to wait 2 years to apply fha and not the 3 years?

What chapter are you filing?

PS Just noticed you are filing a 7. See the chart link I posted for you. Without looking again, I think it is 4 years.

[fltoo]

Sorry, in reading your other posts, I just want to make sure there is no confusion. The 4 yrs. is the FM guideline. FHA does not grant loans, it only insures them. The buyer pays the insurance as opposed to say, a VA loan, where the government guarantees the loan.

[paintinrosesred]

Can you get a VA loan after BK then?

[Tbornetun]

Are you a veteran? If so, yes, after 2 years. Some have said on this board you can get a VA loan in as little as one year.

We are currently in the process of obtaining a VA loan, hoping to close by the 15th. We had a foreclosure 2 1/2 years ago and our mortgage guy said that it needs to be at least 2 years from sheriff sale date or BK discharge.

[paintinrosesred]

Wonderful news! Another question... we had a VA loan ten years ago (not the house we are foreclosing on)... can we use the VA loan more then once? My husband is a veteran.

[Tbornetun]

I don't know, you will have to contact the VA. I thought I read somewhere that it is only available once, but I don't know.

[fltoo]

Keep in mind that you can be "considered" for the loan, not necessarily approved by the lender. The VA does not lend, it just guarantees your loan to the lender.

You can use your eligibility for VA as many times as you want to, as long as it is not tied to an old loan.

Just call the VA and ask for your certificate of eligibility.

[paintinrosesred]

Thank you!