Wanting to do a VA loan not FHA - 2 fold question

The bankruptcy relieves of obligation on the loan, but doesn't release you from the home. As long as you continue to pay, you can continue to stay. Once you no longer pay, regardless of the bankruptcy, the mortgage company still has to go through the foreclosure process. I've seen that take up to two-years after you stop paying. Your waiting period starts the day the house is no longer in your name. That is usually the Sheriff Sale date. As the house is still in your name, the waiting period hasn't even started yet.

The rule is a wait period of two years before you are eligible to purchase a home after a bankruptcy. This means the clock starts when the bankruptcy is finalized (discharged) this is the date of the Court's Discharge order. If a property is involved and you give the property back to the bank, then the wait period is three years. It does not matter if the property is included in the bankruptcy or not. By definition, a foreclosure is "The legal process by which an owner's right to a property is terminated." The start date for a foreclosure is the date the property is removed from the owner's name. If the property has not yet been transferred out of your name, then you three year clock has not even started yet. It does not matter what HUD say in the rules. HUD does not make loans. HUD only insures them after the lender makes it. HUD's rules are minimum standards. Since the lender is using their own money to fund the loan and then sells it with HUD's insurance, the lender gets to set their own lending standards. They just can't be less than the standards HUD requires. The same applies to VA loans, though the waiting periods are different. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

VA loans also have seasoning requirements for BK and Foreclosure with CH7 being 2 years from date of discharge and Foreclosure being also 2 years from the date of execution on the foreclosure by the bank which Joe defined below. Best way to expedite this waiting period starting is to sign a Deed In Lieu Of at the moment your intentions are clear to no longer retain the property. Another issue I have seen occur with this type of situation is the mortgage continuing to report past due after the bankruptcy which can affect the borrowers ability to obtain financing even though they are well past seasoning requirements for both the BK and FC.

The big question is did you reafirm the mortgage or just pay to stay?

Please contact me for a unique solution to your situation. Dave Metsker. primefinancial@frontier.com, 503-620-2239.

Based on the information you provided, you definitely have a unique situation. I am still unsure if the home was included in the bankruptcy or reaffirmed. If your are not qualified for a deed in lieu, i would ask about short sale since the home is underwater. This may be your only option if a sheriff's sale has never occured, unless of course you qualify for the payments on both homes. Your situation has many layers and you may have to call a number of Lenders before you will find one to invest the time into your situation. I know this information does not help much and I wish you the best.

There are several issues here. You have the place you are currently living in -- is it a rental, or did you purchase? Since you are not residing in the home that you are trying to refinance or get out from under, and it was initially purchased with an FHA loan, you cannot refinance it with a VA loan -- as VA only works for purchases, or for refinancing your current VA loan.I am located in Federal Way, and if you want to give me a call, I would be happy to discuss your situation in more detail. You can reach me at either 253-874-1111 or 800-874-8760.