Mortgage after foreclosure

[Madashell47]

What is the name of your state (only U.S. law)? Ohio

(Currently living in Michigan, although this post pertains to events occurring in Ohio)

Mu husband and I filed bankruptcy in early 2015. After two uninsured medical emergencies, back to back, we were so far in debt. We were drowning.

Since the bankruptcy, we have been able to steadily rebuild our credit, and both of our FICO scores are currently right around 660.

We desperately want another home in Ohio. We miss our children and grandchildren, and parents. We recently found our dream home/property. Affording it is no problem at all, as the sale price is outstanding for a home in that area. I called our previous mortgage broker, and was devastated to learn that because our old home has only been legally out of our names for 7 months, that we would not qualify for another mortgage. Apparently, we must wait a minimum of three years after the foreclosed home has been out of our names.

I have researched for days, but cannot come up with any possible loopholes to this. If there is such a thing, can anyone here point me in the right direction?

 

[adjusterjack]

Researched what?

Have you tried other banks and mortgage companies?

Have you put together a large cash down payment?

20% or better would probably help.

A 660 credit score is nothing to write home about. It's below average.

670 to 739 is the "good" range.

740 to 799 is "very dependable."

It usually takes a few years to get your score back up to the "good" range but a large down payment can often smooth the way. Lenders will want you to have a considerable risk of losing your own money.

It's unfortunate that you lost your home, perhaps due to circumstances beyond your control, but the lending industry is still shy from the debacle of 12 years ago (or at least should be) and it's unlikely that you'll qualify for a mortgage any time soon.

Consider renting in Ohio for a few years while you save up as much cash as possible for a down payment.

 

[justalayman]

When did the foreclosure come into play on reference to the bankruptcy?

 

[Madashell47]

When did the foreclosure come into play on reference to the bankruptcy?

The bankruptcy was filed in January, 2015. Discharged on July 1st, 2015. But the property didn't go up for auction until September 2016.

I don't know if this answers your question - but we made our final mortgage payment in December of 2014, then decided to file the bankruptcy. We were not behind on the mortgage when we filed, but with my medical bills climbing (one medication cost over $600 a month, and I needed to be on it for a year - and there are three others that I still have to take) we felt like we had no other choice than to file bankruptcy and let the house go, as painful as that was. So the foreclosure process didn't start until after the bankruptcy was filed.

Edited to add: We moved out of the house in January 2015, and our bankruptcy attorney sent a letter to the lender stating that we were filing, surrendering the house, and that it was empty.

 

[LdiJ]

The bankruptcy was filed in January, 2015. Discharged on July 1st, 2015. But the property didn't go up for auction until September 2016.

I don't know if this answers your question - but we made our final mortgage payment in December of 2014, then decided to file the bankruptcy. We were not behind on the mortgage when we filed, but with my medical bills climbing (one medication cost over $600 a month, and I needed to be on it for a year - and there are three others that I still have to take) we felt like we had no other choice than to file bankruptcy and let the house go, as painful as that was. So the foreclosure process didn't start until after the bankruptcy was filed.

Edited to add: We moved out of the house in January 2015, and our bankruptcy attorney sent a letter to the lender stating that we were filing, surrendering the house, and that it was empty.

If you want to go back to Ohio so badly, why don't you rent for a while?

 

[justalayman]

I'm a bit perplexed as to why anybody has an issue with the foreclosure. You didn't owe a penny on it (presuming it was discharged in bankruptcy) so the foreclosure is merely a function to clear the title of any claims against the property. There couldn't have been any money involved or even a delinquency due to surrendering it in the bankruptcy

A lender is relatively free to set their own criteria for credit worthiness. When you deal with fed backed loans that freedom is more limited and the requirements are stricter.

If you are really determined to purchase this home, speak
With several mortgage brokers. They may be able to find a financing option that is workable for
You.

 

[quincy]

Temporary bump of thread - I will delete this post later