If you have had a FC in the last 36 months your loan will be denied? Regardless of if it was included in a chapetr 13 BK.  As long as the property has been in your names in the last 36 months it should be a NO GO???? what are your thoughts?

Most lenders will not a loan that had a FC in a the last 4 years with or without a BK 13 attached to it. 

The big question you need to ask yourself in todays market is would you borrow money to anyone that is not paying their bills?  I sure in the hell won't, and I won't spend another new york minute on that type of file.

I told him no way in hell and he told me that Met Life Mortgage was going to do but ....I told him that everything else after the but was BS.

I did one back in the 90s that was between 2-3 years, BUT there was no deficiency from disposition of the property and there were extenuating circumstances covered in the LOX.  That was then, this is now.

Some people just don't listen and I would not want to be the MB doing that one.  The buy back would be killer.

Met Life is the old First Horizon.   Did the borrower have good documentation or an unusual circumstances?  Did you check CAVIRs? (I assume this is FHA).  If I had a borrower w/ a 13 and a FC and the reason behind it was beyond my borrower's control, such as ex-spouse was bi-polar, committed fraud in borrower's name.  Borrower could provide police reports and other support docs.  Borrower paid off everything in 13 w/ the exception of home......I might take it on....

My point, everyone has a story.  What is the current score?  Re-esablished credit?  Ratios?  Current housing?  Packaging a loan is an art.  MetLife doesn't have to worry about buybacks, either.  If they are following the First Horizon method, it sits on the shelf for one year before getting sold.

Sylvia S.:

Met Life is the old First Horizon.   Did the borrower have good documentation or an unusual circumstances?  Did you check CAVIRs? (I assume this is FHA).  If I had a borrower w/ a 13 and a FC and the reason behind it was beyond my borrower's control, such as ex-spouse was bi-polar, committed fraud in borrower's name.  Borrower could provide police reports and other support docs.  Borrower paid off everything in 13 w/ the exception of home......I might take it on....

 

My point, everyone has a story.  What is the current score?  Re-esablished credit?  Ratios?  Current housing?  Packaging a loan is an art.  MetLife doesn't have to worry about buybacks, either.  If they are following the First Horizon method, it sits on the shelf for one year before getting sold.

not to be rude but the heading in this post is VA rules not FHA rules

LOL, I saw that as I was closing it up......my answer is the same.  Only I would ask if you had at least 125% of the required residual in addition to the prior questions.

VA is all about the veteran, especially if someone "did the Vet wrong."

Sylvia S.:

LOL, I saw that as I was closing it up......my answer is the same.  Only I would ask if you had at least 125% of the required residual in addition to the prior questions.

 

VA is all about the veteran, especially if someone "did the Vet wrong."

No, credit card debt is a lousy reason.  I had one guy on a tour in Iraq and his wife had POA.  Well, she bought her new boy-toy a sports car, vacations, electronics....all with his Power of Attorney, 100K+.  All legal.  There are good reasons for BK, and 13 is the kind of BK to have.  But if there was a foreclosure for poor judgment, it's not likely.  Also, if the FC was a VA loan, there is a good chance the Entitlement is gone w/ that FC. 

Also, VA's list of comp factors is longer than FHA's, as well as, VA can be more forgiving.  The entire agency is all about the veteran, from the appraisal to the benefit of the doubt.  Reveal an abuse of credit that has not been repaired or adequately explained, and that alone is reason to decline the loan.  In this instance, retail can go in areas that may not be open to a broker.  With the opportunity to go sit in front of an underwriter, and find out where his/her concerns lie, there is something of an advantage.  I know the AEs are suppose to do that, but remember the whispered secret game......by the time it gets back to you, it's an entirely different messsage.  But even then, you have to put a value on your time. 

And a final thought, there are some loan officers (retail) that are in the hole with their draw and they will throw anything at the wall, just to get numbers on the board and deflect the heat.  Not fair to the borrowering public, but I am certain it's happening.

Sylvia S.:

No, credit card debt is a lousy reason.  I had one guy on a tour in Iraq and his wife had POA.  Well, she bought her new boy-toy a sports car, vacations, electronics....all with his Power of Attorney, 100K+.  All legal.  There are good reasons for BK, and 13 is the kind of BK to have.  But if there was a foreclosure for poor judgment, it's not likely.  Also, if the FC was a VA loan, there is a good chance the Entitlement is gone w/ that FC. 

Also, VA's list of comp factors is longer than FHA's, as well as, VA can be more forgiving.  The entire agency is all about the veteran, from the appraisal to the benefit of the doubt.  Reveal an abuse of credit that has not been repaired or adequately explained, and that alone is reason to decline the loan.  In this instance, retail can go in areas that may not be open to a broker.  With the opportunity to go sit in front of an underwriter, and find out where his/her concerns lie, there is something of an advantage.  I know the AEs are suppose to do that, but remember the whispered secret game......by the time it gets back to you, it's an entirely different messsage.  But even then, you have to put a value on your time. 

And a final thought, there are some loan officers (retail) that are in the hole with their draw and they will throw anything at the wall, just to get numbers on the board and deflect the heat.  Not fair to the borrowering public, but I am certain it's happening.

 

aaaahhhhhhgggg!

snicker.......

Lemme think of a new one.....I think that qualifies for the new MND dictionary........