Foreclosed in Phoenix

 Foreclosed in Phoenix AZ. We are quickly approaching the era of the pre-foreclosed borrower.  We have probably all bumped into a person that has had a foreclosure but the probability running into someone coming off foreclosure is on an upward swing.

 Conventional, FHA & VA all have their guidelines on borrowers with foreclosures but since most of the business I run into these days is FHA.  I would like to go over a few problems one may run into.

FHA requires 3 years from the time the borrower has foreclosed on their home before they are eligible to buy another home.  Their can be extenuating circumstances but don’t count on an underwriting buying 95% of those well thought out stories of why you were foreclosed upon.  You may be okay if the main wage earner passed away or if the home was taken over through a divorce but otherwise you are probably out of luck.

 Keep in mind that FHA requires a 3 year period prior to the application being taken.  Loan officers need to understand that they can’t be pre-approving clients with a full-blown application and a contract in hand just waiting for that 3 year mark to pass before you can fund.  However, FHA does not specify that the borrower can’t go out and put get a contract in place before the 3 year mark.  This would require the loan officer to be a little savvy by being able to look at the borrowers’ credit profile and pre-approving them without actually doing an application.

 If your home was foreclosed on in Phoenix AZ  in the past 3 years it’ best to get your house in order now.  Having re-established credit is essential and setting up a game plan will make sure you are ready when that 3 year time period is up.  Fill out a quick application to see if you need help with financing after a foreclosure. At VIP Mortgage we can help you with your home financing.

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It’s believed  by many that once you enter a bankruptcy that you must wait years before applying for a mortgage.  However, in a chapter 13 bankruptcy you can become eligible for a mortgage in just 12 months.

FHA & VA guidelines allow for mortgage financing to purchase or refinance your current home after a satisfactory 12 month payment history.  The key is to make those payments satisfactory.  If even one payment is a day late it could cause the bank to deny you financing.

Other challenges that may arise in qualifying is getting your credit cleaned up and even re-established after you have filed the bankruptcy.  I recommend to my clients to work on cleaning up their credit and to also get set up with new credit to help raise their current credit scores.

The details of a chapter 13 bankruptcy can be different in every case but my team and I have helped hundreds of people get the financing they need or set them up in the right direction for future success.