FHA - BK dates/prior Foreclosure date

[maidenski]

Hi Everyone,

I'm in the process of buying a home, but have run into some roadblocks and wondering if anyone has experienced this. FHA has guidelines of 2-years post discharge (Ch. 7) and 3 years since prior foreclosure in order to get approved.

I meet both of these requirements - or so I thought! My foreclosure was finalized (Sheriff's sale) 9/07 and my bankrupcty was discharged 8/09. I included the mortgage on my bankruptcy, even though the foreclosure was said and done. I needed to protect myself from having any deficiency judgements.

Here's where the underwriter is being a stickler. They are saying that since the foreclosures were included in the bk, it has only be 2 years, when really it's been 3 years since the sheriffs sale (legal documents prove this). The foreclosure was included on the Unsecured Schedule of my bankruptcy, as the mortage ceased to exist, so technically, there is no mortgage listed in the bankruptcy.

Anyone run into this and have success with an underwriter actually looking at the legal dates of these things?

Thanks for any advice!

[screentest]

Maidenski,

This sounds like a reasonable explanation and you have documents to back it up. Have they requested you provide these documents or or they just giving you a denial of approval?

If they cant make sense of this , and that's not uncommon, find another lender with the same program you are looking at and give it to another underwriter.

ST

[maidenski]

They have not asked for the documents, the underwriter just told my loan officer that since the foreclosure is listed on the bk, it's only been 2 years. It's so frustrating because the home has been out of my name since 2007. My LO tried to explain that once the foreclosure happened, the mortgage ceased to exist which means it was just a money judgement on the bk. I do not want to lose the house I have an offer on, so I hope she can get an underwriter to see this. It's a very gray area for FHA loans and is open to interpretation and now the underwriters are being overly conservation on approvals. : (