Tulsa Mortgage : Podcast 39 – Part 1
Steve Currington: This is stevecurrington.com com and The Steve N’ Tyler Podcast, Episode number 39.
Narrator: Welcome to The Steve N’ Tyler Show, with stevecarrington.com and Tyler Whyburn.
Steve: Who negotiated the contract for you?
Tyler Whyburn: A Realtor.
Steve: Oh, you’re pretty smart.
Steve: Good for you man.
Narrator: They’re talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready because here’s Steve and Tyler.
Steve: What up Tyler?
Tyler: Good morning.
Steve: How is it going bro Tulsa Mortgage?
Tyler: It’s going.
Steve: It’s early Wednesday morning here in the Thrive Studios, where we record our podcast. And I hope your week is going well. Hey, we’re talking today about: How long do I have to wait to get to approved for a mortgage if I declare bankruptcy in the past? That’s a big thing. How many times a day, do you think we get that question, Tyler?
Tyler: We deal with it quite a bit.
Steve: Yes, it’s a lot. It’s just a lot, a lot of people call and ask. And here’s the thing, it’s not an easy answer. It’s really not. We talked about in a previous podcast that every loan program is different. So we’ll talk about that today, we’ll talk about, what the waiting time is for, say a Conventional Loan. We’ll talk about what the waiting time is maybe for an FHA loan, for USDA, for VA, for, do we say FHA Tulsa Mortgage?
Steve: Tulsa Mortgage Basically for every type of loan, because every type of loan happens to be just a little bit different on the rules. Tyler, starting with the simplest and most easy, and I’ll say pretty much across the board- Not across the board, but on most government loans, most of them. Well, let’s just say on FHA and VA, what’s our wait time? So “Hey Tyler, hey, I filed bankruptcy 12 months ago. Can I get a mortgage?”
Tyler: 12 more months.
Steve: 12 more months, so that’s a 24 month waiting period from the discharge date. Now listen, there are exceptions to every rule. [Chuckles] If you do have a bankruptcy in the last two years and/or maybe, it’s 25 months old and you included a property in that bankruptcy, how long do you have to wait?
Tyler: Ouch! So, we’re saying that the property was actually, it went back?
Tyler: They gave it back.
Steve: Tulsa Mortgage Tyler’s being funny because it’s kind of like our- I would you say it’s a pet peeve or it’s just kind of an interesting and funny thing, when people say, “Oh yes, yes, I had that car repossession but it was voluntary, I let it go back.”
Tyler: [chuckles] But they probably don’t even give you the word repossession. It’s just-
Steve: Oh, yes, yes, that’s a- Hold on, let me try to redo it. “Okay, so yes, that was my- I bought this car from this car dealer and I had it for a year and the transmission was messing up, so I let it go back.” Was that better?
Tyler: Sure. Yes.
Steve: [laughs] It’s like it got repossessed, you got foreclosed upon, you didn’t give the house back, regardless of whether you want to call it voluntary or involuntary. I guess, Tyler would voluntary be like, “Oh, okay, yes, thank you. Here’s the keys, I’ve gotten all my things out of the house.” An involuntary would be like kicking and screaming and the sheriff is there, and your fingernails are dragging on the wall and ripping off the paint off of the walls as they’re dragging your lifeless body from the house, would that be involuntary?
Tyler: Yes, that’s it, that would be involuntary.
Tyler: Whether it’s amicable or not, still shows up the same. It’s the same. It doesn’t matter.
Steve: It doesn’t matter if they have to drag you, kicking and screaming, or if you’re Mr. Cordial, it really doesn’t matter, it’s still going to be a foreclosure on your credit, right?
Tyler: Right. And back to the original question, if you included a house in that bankruptcy, you’re going to wait at least three years for most government loans.
Steve: Three years.
Steve: Tulsa Mortgage From the discharge to the bankruptcy. Now, if you have an FHA loan and they actually have to go through the foreclosure process and file a claim with FHA, then now you have- they call it a CAIVRS and that the CAIVRS stands for some big long term which I won’t bore you, go Google it.
But if you don’t have a clear CAIVRS, then you have to actually wait three years typically from the date of your CAIVRS claim, because sometimes, you might file bankruptcy, Tyler right, in like January of 2015 and then it’s usually discharged within 90 days.
So February, March, April, you get your discharge, and then your clock starts. But if your home was foreclosed on at the end of the discharge in April, and then it took the bank that held the loan five or six or seven months to file a claim with FHA, then now your date really is going to start that’s the day that claimed.
So we just had that happen. We had somebody that their bankruptcy was- For the people to tune in on Facebook Live Carl Myers or Ryan- Wow, we have two Myers on there. Wow, Ryan Myers and Carl Myers. We’re talking about how long you have to wait for a bankruptcy from the date of a bankruptcy, hey Bromley, on all different loan programs.
We’re really referring to a Chapter Seven, Bankruptcy, Tyler. So this is a Chapter Seven, full relinquishing bankruptcy, I guess you’d call it, the Chapter Seven wipes out all the debts. A Chapter 13 very different, isn’t it?
Steve: We’ll talk about that in a minute. But what we’re talking about is, “I filed bankruptcy, what is the timeframe that I can purchase a new home or get approved to buy a house or get a mortgage?” So on FHA, on VA, on those loan types you’re looking at 24 months, unless there’s a property included and then you have three years from the date of the- If there was a claim.
If you did a VA loan, you may not be able to do another VA loan because you lose your entitlement, you can actually lose either your full entitlement or you can Tulsa Mortgage lose what they call Partial Entitlement, and you may not even be able to get another VA loan, ever in your life. So be careful about that.
And then what about, if we had a Chapter Seven, then you’re looking at four years on a conventional loan. If you have a Chapter Seven and you’re trying to get a conventional loan, you’re looking at four years to qualify for a new mortgage. So it’s pretty much double time huh?
Steve: It’s double time if you’re doing a conventional loan. You can see every loan program is different. So it’s not a blanket answer, Tyler that says, “Hey, I’ve filed bankruptcy and what’s the standard number of months I have to wait?” What do you have to add to that, Tyler?
Tyler: I’m not sure what you’re looking for, but maybe what you are looking for, what we got to add to it too is, after the bankruptcy, what have you done, credit wise?
Steve: Yes, it’s not like, “My bankruptcy is 24 months old, so I automatically qualify. Hey, no Tyler, it’s 24 months old.”
Tyler: That’s great but you have been late on your credit card payment every single month for the last year- [crosstalk]
Steve: Because you’ve established one new account and that one account you’ve been late on.
Tyler: Right. You have to show that you’ve established your credit again, that you have done well.
Steve: Done well, that’s a sushi roll that you’ve done well. You’ve got to demonstrate to the credit bureaus and to your lender that you’ve reestablished credit that your- “Hey, the bankruptcy was a onetime thing, this happened, hey, that’s why the law is there, but I’m good now, I’ve got my act together and I’ve got some credit open.” Some people just stick their head in the sand is how I call it, and they don’t– Oops, I dropped Facebook Live. They don’t do anything with their credit. Once they file bankruptcy, they just ignore it. Nothing happens, right Tulsa Mortgage?