First I would like to start by stating I am new to REI and BP.
That said my question is how I could get started with financial help (loans, hard money, etc.) with the following in my recent past. I do have some monies allocated to starting but not able to go 100% by myself.
Chapter 7 discharged in 2009. No reaffirmation on 1st or 2nd mortgage completely discharged. Bank did not foreclose or sell property until December, 2012. According to loan officers, I am not eligible for any type of mortgage until 2016.
Decision forchapter 7 was mostly based on medical debt. In addition, I changed jobs in June 2011 and am now benefiting from a 60%increase in salary.
Any advice would be appreciated.
The bankruptcy which discharged the original two loans should be date that is used not the date of the foreclosure sale. Since the bankruptcy discharged the loans back in 2009 the standard 4 year waiting period from the date of discharge should be the time milestone to overcome.
It sounds like the loan officer is using the right time time period (4 years) but from the wrong date (foreclosure sale date vs discharge date). That can be a mix up by the loan officer or it is possible, though not overly likely, that the lender has amended the guideline to fit what you were told. Like I said, I think the latter there is less likely.
You may simply want to call and discuss the terms you were given with the loan officer. Might need to have them verify it with underwriting. You can tell them that Fannie/Freddie us the discharge date not the foreclosure date. Which frankly, makes more sense for the borrower. You had not ability to control the date which the Mortgagee foreclosed. As such, the agencies do not punish you for the Mortgagee's lack of timely action.
Certain allowances are also made if the borrower can show extenuating circumstances but that is in order to qualify ahead of the 4 year waiting period.
Not all lenders will adhere to that guideline word for word so I suggest you speak with more than one lender. Moral of the story, you should be able to find a lender now and not wait until 2016. The waiting period has already expired. Good luck.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.