Mortgage Companies Imploding Again! When to Worry

In 2006, the infamous Implode-O-Meter was established to predict and announce all of the mortgage companies that were going belly up. It was both fascinating and extremely helpful because it warned people to avoid lenders or investors (that buy loans) that were on the verge of bankruptcy.Read More

Jumbo Loans Stall; IRS & India Shutdowns Slam Industry; Still Funding Loans; Vanilla Loans Only

STIMULUS AND FED ALMOST CRASHED MORTGAGE/HOUSING INDUSTRY Here is a great article that partially explains what happened. Long story short: many major lenders face bankruptcy b/c servicing values are now close to zero (b/c of the risk of missed payments) and b/c lenders face massive margin calls b/c of the Fed’s bond-buying. STILL FUNDING LOANS/VANILLA […]Read More

Bankruptcies Up; How Long Do They Have to Season for Mortgage Financing?

In another indication that we are at the tail end of a business growth cycle, Bankruptcy (BK) filings are increasing even though the economy remains relatively strong. BK filings were up 3% year over year in July, with 64,000 filings nationwide. And, almost 800,000 people are expected to file for BK protection by year-end, as […]Read More

Seasoning From Bankruptcy Discharge: 2 Yrs for FHA

We have been seeing a lot of bankruptcies (BKs) lately, so we thought it was time to again mention required seasoning periods from date of discharge. For Chapter 7 (liquidation) BKs, the seasoning period from discharge is: 2 Years for FHA Financing. 4 Years for Conventional Financing. Borrowers in a Chapter 13 (reorganization/debt pay off) […]Read More

Bankruptcy Often Better Than Credit Counseling

One of our borrowers recently closed down her business and is now thinking about entering into a credit counseling program to pay off all of her credit card debt b/c she cannot afford her current payment obligations. It has been, however, our observation over the years that borrowers in this situation are far better off […]Read More

Bankruptcy Seasoning Requirements; 0, 2 & 4 Years

We are revisiting Bankruptcy (BK) seasoning requirements b/c we are asked so often: For Chapter 7 (liquidation) BKs the seasoning is 2 years from discharge for FHA financing and 4 years from discharge for Conventional Financing. For Chapter 13 (reorganization) BKs, the seasoning is 4 years from discharge for Conventional Financing. But for FHA financing, borrowers […]Read More