Different Types of Foreclosure and Bankruptcy
If you have had both a foreclosure and bankruptcy within the same timeframe and your foreclosure wasn't covered by your bankruptcy, then the 3-year waiting period applies. Unfortunately, I received several calls from interested homebuyers who believe they can qualify for a new house loan that had a foreclosure and bankruptcy only a few years previous. In most cases, the financial state of affairs is such that the home buyer's credit has improved enough to secure a mortgage loan, but it isn't that way in every case. For that reason, the bank or lending company will want to see a credit report from a reporting agency indicating that the recent financial activity is being tracked and reported regularly. This is used as a gauge to determine if you would likely be able to pay your monthly mortgage obligation. A reliable attorney from https://engstromlawnc.com/ will help you with your case.
Several different types of mortgages exist to meet today's housing needs. FHA mortgages, along with other government-backed programs, provide mortgage financing to promote home buying and aid in the reduction of foreclosures. However, these government-sponsored programs do not cover any aspect of the actual purchase of the home. In many cases, the lender will insist on a complete appraisal and evaluation of the home's value before providing a mortgage. This is done by a third party hired by the lender; these third-party appraisers must follow a set of guidelines laid forth in the Fair Markets Standards Act or the Fair Credit Reporting Act.
The third type of mortgage, which is commonly referred to as "ex discharged," comes from a situation in which the lender cannot get a court judgment against the borrower, and there is no requirement for full disclosure to the buyer. "Ex discharge" mortgages are sometimes granted after a foreclosure has been filed, but it is not until the third-party appraiser determines that the home is worth less than the amount of the mortgage. Once this is determined, the home can be sold, but the debtor's funds must first cover the sale proceeds. If the proceeds from the sale do not cover the loan balance, then the mortgage is discharged. This form of foreclosure is rare, but it can happen.