New 2016 Guidelines On Mortgage Part Of Bankruptcy

2016 Guidelines On Mortgage Part Of Bankruptcy:

2016 Guidelines On Mortgage Part Of Bankruptcy is different with Conventional Loans than with FHA Loans. Fannie Mae and Freddie Mac has much looser mortgage lending guidelines when it comes to the recorded date of the foreclosure when it comes to mortgage part of bankruptcy and qualifying for a new conventional mortgage loan after the mandatory waiting period. With all mortgage loan programs, home buyers can qualify for a home loan after a bankruptcy and foreclosure. However, there are mandatory waiting periods after bankruptcy and foreclosure to qualify for a mortgage loan. On this article, we will be discussing 2016 guidelines on mortgage part of bankruptcy and qualifying for both conventional loans and FHA Loans and the mandatory waiting periods if you have a mortgage as part of your bankruptcy.

2016 Guidelines On Mortgage Part Of Bankruptcy: Fannie Mae And Freddie Mac

Fannie Mae and Freddie Mac are the two entities that govern and set standards for conforming mortgage loans, also known as conventional loans. 2016 Guidelines On Mortgage Part Of Bankruptcy is as follows:

If you had a mortgage and/or mortgages as part of your Chapter 7 Bankruptcy , the waiting period to qualify for a conventional loan is four years from the discharge date of your Chapter 7 Bankruptcy. As long as the mortgage and/or mortgages, if there were more than one property in the Chapter 7 Bankruptcy, were part of the Chapter 7 Bankruptcy, the four year waiting period time clock begins from the discharge date of the Chapter 7 Bankruptcy. The foreclosure can be recorded at a later date and it does not matter with conventional loans.

2016 Guidelines On Mortgage Part Of Bankruptcy: FHA Loans

If you have had a mortgage and/or mortgages part of your Chapter 7 Bankruptcy, the mandatory waiting period to qualify for a FHA Loan is three years from the date of the recorded date of the foreclosure on the mortgage that was part of your Chapter 7 Bankruptcy. Even though your mortgage was part of your Chapter 7 Bankruptcy, the discharge date of the bankruptcy does not count and the waiting period clock does not start until the mortgage and/or mortgages that was included as part of your Chapter 7 Bankruptcy was transferred out of your name and into the name of the mortgage lender and/or the date of the sheriff’s sale. Those who have a mortgage and/or mortgages as part of their Chapter 7 Bankruptcy should be diligent after the bankruptcy discharge date to make sure that the mortgage lender gets their name out of the deed to the home.

Qualifying For Mortgage After Bankruptcy And Foreclosure

Home Buyers can now qualify for home loans after bankruptcy and foreclosure. Mortgage lenders understand that consumers can go through periods of bad credit due to unemployment, business loss, divorce, or medical issues. Bankruptcies and Foreclosures happen to the best of all of us due to extenuating circumstances. Home ownership is possible after bankruptcy and/or foreclosure. However, most mortgage lenders do not want to see any late payments after someone has gone through bankruptcy and/or foreclosure and/or short sale. Mortgage lenders want to see re-established credit after bankruptcy and foreclosure and timely payments.

2016 Guidelines On Mortgage Part Of Bankruptcy Versus Lender Overlays

Home Buyers who had a mortgage part of bankruptcy but the foreclosure was not recorded until a much later date after the discharged date of their Chapter 7 Bankruptcy can now qualify for a conventional loan four years from the discharged date of their Chapter 7 Bankruptcy. Unfortunately, most mortgage lenders will tell you that they will still go off the recorded date of the deed of the mortgage note or the date of the sheriff’s sale and that they need to wait 7 years from the recorded date of the foreclosure. This often happens where even though you, as a mortgage loan borrower, may meet all of Fannie Mae and/or Freddie Mac Lending Guidelines, but due to the mortgage lender overlays that you may not qualify. Mortgage Lenders do not need to just go off Fannie Mae and Freddie Mac lendng guidelines. They can have additional lending requirements on top of the minimum guidelines set by Fannie Mae and Freddie Mac. If you are told that you do not qualify for a conventional loan after four years from the discharge date of Chapter 7 Bankruptcy when you have mortgage part of bankruptcy by a mortgage lender, look no further and contact me at 262-716-8151. We have no mortgage lender overlays on conventional loans and no mortgage lender overlays on FHA Loans. Our team of loan officers are available 7 days a week, evenings, weekends, and holidays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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