Here I am again questioning our situation. As of 4/22/08, it will be three years from discharge. We have been speaking with an agent and was given the pre-approval to start looking at homes. By chance, we found one we really liked and was accepted in our offer. Its a short sale and has a TFT no fault of property 4 times prior to this. Mostly, because it's taken too long and the buyers have found other homes but we are willing to wait. Here's my problem...
My broker has assured me we are more than qualified to purchase with an FHA loan (credit scores are in the high 680 to some in the 700's, income to debt in the 34% and the BK limitation at the two year mark). We did include in the BK a home and from the county recorders office, it shows the house was sold at auction on 10/16/2008. Although, on our credit report it doesn't state foreclosure, just "PNC Bankruptcy Ch. 7" the broker was concern with this but said we might be ok. Long story short, we told him our offer was accepted and we needed a "pre-approval" letter and he told me he would put it through the AU system and get the letter by Monday. Monday comes and goes and on Tuesday I send him an email about the letter. He writes back , "There are technical system problems with the underwriting program that they expect to have resolved before tomorrow morning. As soon as the system is available, we will submit it and get the approval. I don't anticipate any problems getting an "approved/eligible) approval notification. I said ok. In the meantime, our offer on the home was approved last night and this morning, still no letter. I then sent off another email and got the response, "It turns out that the system has been changed, contrary to what was told to our lenders about a temporary glitch, and they can no longer issue automated approvals for FHA loans. Not a problem, however, as we will get an acceptable approval before the day is out today.". Now, I'm panicking. Shouldn't he have known this already?? He's been a broker since 1972! I can't assume we are the only ones (in this day and age) having to use an FHA loan. Has anyone else heard that FHA is all now manual underwriting or they don't even use the AU first, then go on to manual?
My broker has assured me we are more than qualified to purchase with an FHA loan (credit scores are in the high 680 to some in the 700's, income to debt in the 34% and the BK limitation at the two year mark). We did include in the BK a home and from the county recorders office, it shows the house was sold at auction on 10/16/2008. Although, on our credit report it doesn't state foreclosure, just "PNC Bankruptcy Ch. 7" the broker was concern with this but said we might be ok. Long story short, we told him our offer was accepted and we needed a "pre-approval" letter and he told me he would put it through the AU system and get the letter by Monday. Monday comes and goes and on Tuesday I send him an email about the letter. He writes back , "There are technical system problems with the underwriting program that they expect to have resolved before tomorrow morning. As soon as the system is available, we will submit it and get the approval. I don't anticipate any problems getting an "approved/eligible) approval notification. I said ok. In the meantime, our offer on the home was approved last night and this morning, still no letter. I then sent off another email and got the response, "It turns out that the system has been changed, contrary to what was told to our lenders about a temporary glitch, and they can no longer issue automated approvals for FHA loans. Not a problem, however, as we will get an acceptable approval before the day is out today.". Now, I'm panicking. Shouldn't he have known this already?? He's been a broker since 1972! I can't assume we are the only ones (in this day and age) having to use an FHA loan. Has anyone else heard that FHA is all now manual underwriting or they don't even use the AU first, then go on to manual?
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