My husband and I are in the process of purchasing a home right now. We received the pre-approval in September, and now have a contract as of two weeks ago. We’ve already made the Earnest Money deposit, the appraisal has been done, and the inspection is scheduled for Monday of next week. Here’s the problem: I previously filed a Chapter 13 bankruptcy in 2008 that included my previous home that my ex-husband lost in foreclosure (BK discharged Nov 2013). I didn’t think twice about it, but after reading SEVERAL boards regarding the waiting period for FHA loans after foreclosure I am now horrified.
Let me first say I did not intentionally avoid telling the loan officer in order to commit any act of fraud. I really didn’t think to even discuss it because we gave all documentation requested, all credit reports, tax documents, bank statements, etc. Everything was reviewed in September, and then again this month. Since the property was included in the discharged BK I really didn’t think to point it out and it wasn’t discussed. So far my loan officer is saying everything looks great, but my concern is UW seeing a foreclosure that took place in 2006 and me not disclosing it. I’ve done so much to get my credit and finances back in order after my divorce, and I definitely don’t want to risk my husband suffering due to my mistake (or face prison) over an application.
The property was sold back in 2007. Has as anyone ever had this issue? I want to do everything possible to help the process go as smoothly as I possibly can. I will be calling my LO in the morning, but just wanted some insight.