Hi Marcer, You really seem to know your stuff, FHA/DIL Question Please

[pathfinders]

Hi Marcer,

You really seem to know your stuff,


I have gotten several different answers to this question; If you can please shed some light on the Subject


We had a VA loan Filled Chapter 7 included the house, Discharged 8-31-2010 2 years ago; we were able to get the bank to take back the house Did a DIL, ( Wellsfargo) 9-2011 about 1 year ago: of course the bank never foreclosured on the home we gave it back as we had rented in a different area , ( we just wanted to start over)


So the big question for FHA I know it is 2 years after Chapter 7 to get a loan and it looks like it is 3 years from the day the back take the house back:

So if the Wells Fargo never foreclosed and just sold it back to the VA:

I have no benefits or very little left for a VA loan, house was 100K upside down when we did the DIL.

Our lease is up in April of 2013 and are thinking buying again.

Just pulled my credit I am at 692 average of all 3 and my wife is average 711 of all reports,

do we still have to wait 3 years from the DIL to go FHA?

of course on all credit reports it does NOT say anything other than IBB for wellsfargo;

I know FHA is 3.5 Percent if you would put down say 10% can that help lift the restrictions if the wait would be 3 years for DIL.


Anyone elase of course feel free to chime in especially if they have had this experience;

Thanks

[doodlebugger]

From what I have read about FHA, they will make exceptions to the 3 year rule if you have "extenuating circumstances" but they don't include certain things. You will want to watch out for lender overlays which have extra requirements about deed-in-lieus and bankruptcy though.....for example, with our USDA loan, one lender wanted the deed out of our name for two years before they would even talk to us. I'm hearing that there are some exceptions being made because there are so many people in the same situation after bk7, so the best thing to do is to try to find a lender/broker or someone who is knowledgeable of these types of loans and run your situation by them.

[LSUTiger32]

I am going through a similar situation. They will consider it a foreclosure from the day of the BK. I had a mortgage that I surrendered and the loan holder has never and looks like they will never foreclose. They are making me wait three years.

[tobee43]

did you sign a release when you signed the DIL. if you did and you it was excepted your 3 year mark should begin then because a DIL....is exactly what is says...a deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender). so, therefore, there is no foreclosure.

in as much as lenders waiting certain amounts of time. so it's been said. however, i must point out i know now of many that never filed bk, or did a DIL, had perfect credit scores in either the upper 700's or 800 marks and the banks are still not lending. as a result, and i'm not implying it's easy, we did a 100% owner finance deal. we leased with an option, exercised the option early on and offer the owner more than asking price and a large downpayment. it worked for us, but this is florida where the inventory is vast and plenty.

you may want to find a realtor that may work with you finding a land contract, thereby assuming someone else's mortgage.