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Question By
easher

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Can our loan be saved
are under contract for home at 252k. Mortgage score is 685, income 87k. With the new mortgage our dti is 34.5%

We are 3 years out of a chapter 7. No negatives reporting on credit report. We were preapproved for fha and we are a few weeks from closing.

Everything was fine until we hit a major snag this week. We relocated 5 yrs ago and rented out our home. It was included in the bankruptcy and doesn't report on our credit. The problem is that our tenants were late on rent several times and we have a few 30 day lates on that mortgage over the past year. I was under the impression that after it was IIB, that we were no longer held against us for credit as long as it wasn't later foreclosed or short sale.

Our lender requested a trade line update and it obviously shows the late payments. LO is going to run it through automated underwriting tomorrow, but we aren't optimistic that we will be approved.

Do we have any more options? We have never been late on anything, before or after bankruptcy and have a perfect rental history since we relocated. We have sold the rental house and obviously it would not be a recurring problem.

Is there any hope?

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Top Contributor
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Hmmmm

Not to respond with a question, but how did this not get picked up before the preapproval?  Didn't they see the lates on the credit check before this time?

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