Freeport, NY · Member since 2017 · 2 posts · 0 votes
My primary residence is currently bank owned and they are willing to sell it back to me for $140,000 cash. Comparables I'll run my area are between 300k - 330k. Everything in the home (which is a cape, 3-2) has been gutted and updated except for kitchen and first floor bathroom.
my local bank will not give me a mortgage because of the for closure and a bankruptcy that I did three years ago even though my credit score is 725 (as per credit karma). I have had 100% payment history with 26 total accounts.
any suggestions on what I can do?
If you are VA eligible there is only a 2 yr wait after your BK is completed. So if you went into a payment plan (sounds like you didn't) you would need to complete that and have the BK "discharged." FHA is 3 years post BK? It may be 4. Call a mortgage broker. Give him all the details and ask about an FHA loan. I think it's 3. See this link http://www.afterforeclosure.com/
Each bank can decide to make you wait longer. So sometimes the "local" bank is not the one you want to go with.
If it's been over 3 years from the foreclosure completion, then it's FHA all day. Your local bank may not do FHA loans, and/or may have overlays on the guidelines. But the FHA guidelines are 3 yrs for a foreclosure and 2 yrs for a BK.
Unless you're a veteran, then for a VA loan technically there is no seasoning, most underwriters want to see 2 yrs but this is a very gray area and easiest to qualify for.
For Conventional, it's 7 yrs foreclosure seasoning, regardless of your credit score or LTV (which will save you from getting your hopes up and wasting your time calling around). *There are "extenuating circumstances" exceptions that allow only 3 yrs, but that's only for a divorce, accident, layoff, etc beyond your control and you better be able to document the crap out of the hardship, income loss, dates all match up, etc.
I'm not licensed in NY, but if you need a rockstar LO there, PM me and I will connect you.