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

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

Out of BK and Into Mortgage With No Seasoning; Bankruptcies

Borrowers in a Chapter 13 Bankruptcy can obtain FHA mortgage financing immediately out of the bankruptcy with no seasoning. They need to have been in bankruptcy for over one year, and they need to have a perfect history of payments to the BK Trustee. One of our competitors has been touting “BK Buyouts” (the above […]Read More

Rookies & No Short Sale Seasoning & 2nd Job Seasoning

We met First Time Home Buyers over the weekend who had been woefully misinformed by other lenders, driving home our point about the need for proper training and education in the lending arena. Below are a few things all loan officers should remember. No Seasoning is required after a short sale if there were no […]Read More