AUSTRALIAN DEMOCRATS : How Many Low Doc Loans Are Unethical? – 24/08 …

Posted on Aug 26, 2012 in Stated Income Loans

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Question by PhoenixJim: What lenders do an FHA mortgage with less than 3 years foreclosure seasoning given extenuating circumstances?
The HUD handbook says it can be done, information pills but every lender I have talked to says they have never seen it done. Also, sick please don’t reply back with a rude remark about how people with a foreclosure never deserve to buy again, etc.

Best answer:

Answer by loanmasterone
As I understand your question is you had a foreclosure about 3 years ago and now want to purchase a new home underwritten by FHA mortgage. All the mortgage brokers so far are telling you this is not done, yet the HUD handbook say it can be done.

You need to find a mortgage broker that do FHA loans that understand the nuances of doing a FHA backed mortgage loan with a previous foreclosure or call a local HUD office to get an interpretation of the HUD pamphlet or a list of local mortgage loan officers that understand the meaning of the pamphlet.

Normally, after 3 years and with a strong letter of explanation as to why you had a foreclosure, you could apply for a mortgage loan.

Of course with the pamphlet indicating you might apply, you- must still qualify with the proper credit scores, rebuilt credit and a minimum of three credit trade lines on your credit report. You should make sure you meet the minimum qualifications prior to applying for a mortgage loan.

I hope this has been of some benefit to you, good luck.


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AUSTRALIAN DEMOCRATS : How Many Low Doc Loans Are Unethical? – 24/08
"The evidence put before the Senate inquiry by Denise Brailey of the Banking and Finance Consumers Support Association is damning. She asserts widespread fraud in low-doc and no-doc loan applications render them misleading and unconscionable.
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RBA exposes low-doc loans risk
The Sydney conference was also told there may be a case for greater use of hard limits on lending. Low-doc loans and "no-doc" loans involve lenders requiring little or no evidence of a borrower's ability to make repayments, pharm and generally carry higher …
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ASIC says no to low-doc loan inquiry
THE corporate regulator has refused to investigate a claim of alleged low-doc loan fraud despite one of the nation's top forensic handwriting experts saying there is "no evidence" the documents in question are legitimate. Businessman Gary White applied …
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