How are your u/w's handling BK's with a property included for a new FHA deal? Are you guys three years from discharge or three years from when the FHA claim was paid?

Thanks,

Jason

was the property that was included in the BK an FHA loan?

Yes Andy it was an FHA deal...you are just the guy I wanted to hear from. Do you know how we are handling that?

Hey Jason,

Sorry I just saw this.  I believe it is 3 years from the time it was paid off if it was sold at a loss.  Or if the property was not sold at a loss it is 3 years from the discharge date.

The last time I ran into this it was under Nat City guides, but I got to believe they are the same.

I got this one sorted out....at least on our end we are requiring a clear Caivrs. Which will require 3 years from the date HUD claim was paid. The borrower can call FHA and get the exact date as in many cases it is well beyond the normal 3 year requirement for a Chapter 7 w/ REO included.