After a Bankruptcy or Foreclosure

In my never ending quest to get this Real estate market MOVING . . .

. . . and to help MORE people make the move they’ve been yearning to make for perhaps the past several years . . .

. . . I am always on the lookout for timely, informative information to (Hopefully) provide the “Permission” many folks are seeming to need to enter the process of Buying and/or selling their house.

Y’see! what is needed MOST in our Real Estate Market throughout Middle Tennessee is MORE HOUSES ON THE MARKET.

There’s this enigma with which many homeowners are struggling . . . If they sell their current home, where will they live?

For many, there’s a “Pit in the stomach” fear that they won’t qualify financially for the next house, and so they continue to do . . . nothing . . . and continue to live in a house they’d rather not.

Some of this fear simply comes from misinformation about today’s lending environment.

Believe it or not, Mortgage Companies DO want to lend money to qualified home Buyers . . . and the qualifications have loosened a bit.

The lending process isn’t necessarily the nightmare you might be imagining.

The other reason folks who want to move aren’t may be tied to unfortunate financial happenings in their past such as Bankruptcy or foreclosure.

These folks have lost their confidence and are thinking that they’re “STUCK” where they are.

Guess what?

There IS light at the end of the tunnel, and what you’ll read below proves it ūüôā

Other than making contact with and “Hiring” a great REALTOR (connecting with¬†Pareto Realty is a good start), the MOST important thing for ANY prospective Home Buyer to do is to connect with a great Mortgage Lender (Like Stephen Joselyn) for “Pre-qualification.”

DO THIS even if you think there’s NO way they’ll approve you . . . How will you know if you don’t.

In the event you cannot (yet) qualify, most lenders will help you get things in order so that you WILL eventually qualify.

I almost never feature other folk’s material on, but today I make an exception because Stephen Joselyn’s email to me this morning offers a glimpse at MORE light at the end of the tunnel for many Home Buyer Wannabes.

If you’re one of these folks . . . ESPECIALLY if you have a house you need to sell before buying your next house, PLEASE contact me (or your favorite REALTOR NOW) and get this process started.

It’s NOW time for you to make that move you’ve been wanting to make ūüôā

Below is Stephen’s article . . . Read it and connect with him immediately!

ForeclosureAfter a Bankruptcy or Foreclosure

Many family’s who suffered the most, just ¬†a few years ago, may now be eligible for loans under the revised waiting periods for the most popular loan programs. ¬†There are two additional major items the borrower must keep in mind besides the minimum time requirements:

            1.  Acceptable credit has to be reestablished with minimum middle acceptable credit scores for the applicable program.

             2.  Government insured loans post any deficiency incurred on a default to the borrowers social security number records.  New government loans require lenders to pull a CAIVRS report and it must be clear of any deficiencies to be approved for a new government insured loan.

                         The following chart reflects the  adverse circumstance type of situation and the wait time required by the three most popular loan

Loan Program Waiting Periods

Shorter Wait Times
 VA waiting periods for the most part are two years after the discharge date unless the borrower has defaulted on a VA mortgage.  Entitlement, and or deficiency amounts have to be reviewed on each case individually to determine eligibility for a new VA loan.

                   .Both FHA and conventional guidelines have recently changed to help borrowers who have suffered circumstances beyond their control such as the death of the primary wage earner in a bankruptcy situation.

                    There are even special situations on a short sale that can reduce the waiting  time frame.  One of the key requirements on a short sale is the mortgage history of payments twelve months before the short sale.  If they were paid on time the borrower may be eligible for a reduced time period.  If your client fits one of these circumstances have them give me a call.

Loan Programs Minimum Middle

Credit Score Requirements

FHA (standard loan)            620

  FHA/THDA                           620

  FHA 203k                            640

   USDA Rural Housing          640

 Conventional                       620

 VA                                       600


It is no secret that higher credit scores will result in lower rates, especially on conventional loans.

¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬† ¬†Before buying a home have your buyer give me a call to see what can be done to improve their scores.¬† ¬†I review each borrower’s report to see what steps could be taken to¬†enhance the borrowers scores and reduce their rate and payments.

                            Mortgage Insurance on 81%-95% conventional loans (PMI) can be improved by higher scores as well.  Just last week one of my clients improved his score from 708 to 721 and it dropped his mortgage insurance from .89% to .58% on a 95% conventional loan and saved him more than $50 a month.

                        Here are three credit score improvements that will benefit most borrowers:

        1.  Create and maintain a $5 to $10 balance in an open but unused credit card account. This one item can pop up a score seven to ten points.

        2.  Reduce any credit card balance over the limit as soon as they know it is over the limit.  Most credit card banks post to the bureaus between the 12th and 15th of the month.  Paying a limit down before the due date and before the posting date will produce the maximum best result.  It is best to be lower than the limit by at least 10%; next score improvement points are 50% and 80% below the line of credit limit.

¬†¬†¬†¬†¬†¬†¬†¬†3.¬† Adding your spouse to a line of credit with a long good credit¬† history can improve the co-borrower’s scores.¬† This can be very useful since the lowest middle score of a married couple is used for qualifying¬†

Loan Plan Illustrations

                                If you care about the financing details  for your clients call us for a quote for your buyer.  Our initial loan plan illustration reflects the usual terms and rates you are use too, but also includes helpful bits of information your buyer will find very useful and informative.

Web Site For Prompt Pre-Qualifying

¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†Have your buyer complete the long form on my web site and I will get back with them the following morning. The web site name is an acronym of my name. “steve just lends” easy to remember, and allows the customer to complete the application on line, anytime¬†and is filled with helpful information including a mortgage calculator, amortization schedules, and tools such as rent vs mortgage, and refinancing tips, etc.

      Knowledge,  experience, great rates and service  are a tough combination to beat, give us a call at: 615-391-9858.

Stephen R Josleyn, Branch Manager

3441 Lebanon Pike, #112

Hermitage, TN 37076

NMLS 172442; TN License 104542

Department of Financial Institutions #4011

Stephen R. Josleyn, Branch Manager

 615-391-9858   Cell: 615-497-4399  

Web site:

Published by Barry Owen

Strategist-CEO of Pareto Realty Real estate sales Professional Inviter-Facilitator-Practicer of Open Space Technology Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US Invite-Listen-Love

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