Many mortgage applicants will get a surprise boost in their credit scores


Kentucky Waiting times for a Mortgage loan Pre-Approval After A Bankruptcy and Foreclosure or Short Sale
Bankruptcy, Foreclosures, and Short Sale and how they affect your mortgage loan approval for a Conventional Loan, FHA Loan, USDA Loan, and VA loan.

 

In a little-known policy shift, the three national credit bureaus — Equifax, Experian and TransUnion — plan to stop collecting and reporting substantial amounts of civil judgment and tax lien information on public records affecting millions of American consumers starting July 1.

 

 

Both types of information have negative impacts on credit scores and remain in credit files for extended periods. Tax liens are levied against properties when the owner is delinquent on payment of taxes. Civil judgments — debts owed by the losing party in legal disputes that typically involve monetary damages — are ordered by courts.

With the elimination of this information from vast numbers of consumer credit files, some lenders are concerned that when they order credit reports to evaluate an applicant, they may no longer get the full picture of the risk of nonpayment posed by the consumer.

 

 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

 

Source: Many mortgage applicants will get a surprise boost in their credit scores

2016 Kentucky Home Buyers Mortgage Guide After Foreclosures and Short Sales For FHA, VA, Fannie Mae, USDA, RHS


2016 Kentucky  mortgage waiting period for foreclosures and short sales for specific situations

Homebuyers are Ready to Buy After Foreclosures and Short Sales

Kentucky Conventional Loans

  • Foreclosures: 7 years from the foreclosure completion date (some applicants may qualify for a conventional loan only 3 years after with extenuating conditions including wage earner death, illness or job loss)
  • Short Sale/Deed in Lieu-Short Sale:
    • 7 year with less than 10% down of primary residence
    • 4 years with 10% down on the purchase of a primary residence
    • 4 years with 20% down on the purchase of a primary, secondary or investment property purchase
    • 2 years with extenuating circumstances, only with 20% down

Kentucky FHA Loans

  • Foreclosures: 3 years from the foreclosure completion date and transferred back to the lender to the credit report date
  • Short Sale: 3 years from the title transfer date

 

Kentucky VA Loans

  • Foreclosure: 2 years from foreclosure completion date and date transferred back to the lender
  • Short Sale: 2 years from previous sale closed date and new owner transfer date

 

Kentucky USDA Loans

** If the mortgage debt that was foreclosed, was included in a Bankruptcy – then the KY USDA Home Loan waiting periods after foreclosure “waiting period” of 3 years, starts from the date of the discharge of the Bankruptcy.  Because it can take 6 months or more for Banks to process the Foreclosure, and transfer title, this is a tremendous plus.

 

:    3 years from foreclosure completion date or sheriff sale of home

:    3 years from short-sale closing date

 

Homebuyers are Ready to Buy After Foreclosures and Short Sales

Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan


Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan.

Buying a home after a short sale, foreclosure, or bankruptcy using a Conventional Fannie Mae Loan


Buying a home after a short sale, foreclosure, or bankruptcy

Conventional Fannie Mae  Agency Guidelines below

Short Sale
Deed-In-Lieu of Foreclosure:

4 years from completion date
If extenuating circumstances exist:
• DU: 2 years from completion date
• LP: 2 years from completion date on owner occupied purchase or non-cash out refi nance only,
max 90% LTV or max LTV per program

Bankruptcy:

Chapter 7 or 11
4 years from discharge or dismissal date.
If extenuating circumstances exist – 2 years from discharge or dismissal date.
Bankruptcy: Chapter 13
4 years from dismissal date (borrower did not complete the Chapter 13 plan) or 2 years from
discharge date.
If extenuating circumstances exist – 2 years from discharge or dismissal date.
Multiple Bankruptcy Filings
within the last 7 years
5 years from the most recent discharge date or dismissal date.
If extenuating circumstances exist – 3 years from discharge or dismissal date.

Foreclosure

7 years from completion date of foreclosure action as reported on the credit report or other
foreclosure documents*
If extenuating circumstances exist: 3 years from the completion date of foreclosure action as
reported on the credit report or other foreclosure documents*
• Purchase-90% or program limit, owner occupied only

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 phone: (502) 905-3708
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 CONFIDENTIALITY 

Kentucky Mortgage Resources to help save your home and get current on your mortgage


State

Approved Foreclosure Intervention/Default Counselors and Legal Aid Directory
Complete List of agencies, contact information, and the counties they serve

Better Business Bureau
The Better Business Bureau offers the “Reliability Report” which serves as a business report card.  Consumers are encouraged to check the report before they do business with an unfamiliar company.
http://www.bbb.org

Kentucky Attorney General
The state’s Attorney General protects consumers from crimes of all types.
Consumer protection:  (888) 432-9257
Identity theft:  (800) 804-7556
http://ag.ky.gov/

Kentucky Cabinet for Health and Family Services
Food stamps, health care, Medicaid, child care assistance, child support, heating and utility assistance.
http://chfs.ky.gov

Kentucky Department of Financial Institutions
The state’s Department of Financial Institutions supervises the financial services industry.

Beginning January 1, 2009, all mortgagees shall provide the “Notification to Homeowners of the Kentucky Homeownership Protection Center” document to all Kentucky borrowers, as required by KRS 286.2-020. This form is available to download by going to http://www.kfi.ky.gov/nondepository/khpc.htm.

Consumers can call to check background and license status of their loan officer, file a complaint or to report fraud.
(502) 573-3390
(800) 223-2579
http://www.kfi.ky.gov


National

U.S. Department of Agriculture-Rural Development Office
1-800-793-8861
www.rurdev.usda.gov

U.S. Department of Housing and Urban Development (HUD)
www.hud.gov

U.S. Department of Veterans Affairs (Veterans Administration)
1-800-827-1000
www.va.gov

Fannie Mae
1-800-7FANNIE (1-800-732-6643)
Freddie Mac
Information on how to buy a home and avoid foreclosure as well as financial calculators and budgeting tools.
http://www.freddiemac.com/avoidforeclosure/who_to_contact_for_help.html#sources

Calculators and tools: http://www.freddiemac.com/corporate/buyown/english/calcs_tools/

Federal Trade Commission
Consumer protection, information and complaint procedures.
1-877-FTC-HELP (1-877-382-4357)
TTY: 1-866-653-4261
Main site: www.ftc.gov/
Credit repair facts: www.ftc.gov/bcp/conlin/pubs/credit/repair

National Foundation for Credit Counseling
Consumer debt advice
www.nfcc.org.

Annual Credit Reports
www.annualcreditreports.com

Equifax
Credit reports, credit fraud protection and credit dispute information.
www.equifax.com

Experian
Credit reports, credit fraud protection and credit dispute information.
www.experian.com/

TransUnion
Credit reports, credit fraud protection and credit dispute information.
www.transunion.com

Internal Revenue Service
For Individuals: 1-800-829-1040
For Businesses: 1-800-829-4933
For Hearing Impaired: 1-800-829-4059 (TDD)
Hours of Operation: Monday through Friday, 7 a.m. to 10 p.m. local time (Alaska & Hawaii follow Pacific Time)
www.irs.gov


Local

Counselors
The Kentucky Homeownership Protection Center works with counseling agencies to provide foreclosure prevention and intervention counseling services to Kentucky residents. If you are in danger of foreclosure or need budgeting and credit help, contact the Protection Center. A representative will call you to schedule an appointment with a counselor in your area at no cost to you.

Dial 2-1-1
Some areas of Kentucky have 2-1-1 service which you can call for additional services. Where available, 2-1-1 can help locate the services you need including food, utilities, medical care, toiletries, household items, furniture and security deposits for rental units.

The Salvation Army
The Salvation Army may have funding available to assist homeowners who are behind on their mortgage payments. Visit the Salvation Army Web site to find a location near you.

Churches
Contact your church to find out if they have services available. Churches will often assist parishioners in need.Image

HUD Housing Counseling Agencies located in KENTUCKY


Adapted from Wikipedia's KY

Programs and Options

Short Sale

In a short sale if you are not able to use the options above and you cannot bring your loan current, afford to make the monthly payments, or sell the property for the full amount of the loan, your lender would have to agree to accept less than the amount owed as full payment.

The Positive:

Under the terms of a short sale you are protected byThe Mortgage Debt Relief Act of 2007 and your lender may forgive your mortgage debt in its entirety according to the terms outlined in The Mortgage Debt Relief Act of 2007.  The waiting period to buy a home after a short sale could be less than 14 months compared to the 5-7 years following a foreclosure.

The Negative:

You must sell your home.

Deed-in-Lieu of Foreclosure

A deed-in-lieu of foreclosure your lender would have to agree for you to voluntarily transfer the deed to the property to them.  This is typically done when you are unable to bring your loan current or sell your home in a reasonable amount of time.

The Positive:

By voluntarily agreeing to a deed-in-Lieu of foreclosure you would save your lender thousands of dollars by avoiding the foreclosure proceedings. If you and your bank are willing to do this, Fannie Mae has reduced the mandatory waiting period to establish credit history to a minimum of 4 years compared to the mandatory waiting period of 5-7 years following a foreclosure.

 The Negative:

You must move from your home.

 

 

Forbearance

If you and your lender agree to a forbearance, you will pay a reduce amount of your mortgage or your lender will suspend payments for a short amount of time. At the end of the forbearance period, you will make your regular mortgage payment plus an additional amount of the past due payments each month until you are caught up.

The Positive:

You will be able to remain in your home and with a temporary reduced monthly payment or a suspended payment.  This will give you the time to recover from injury or illness, save money, pay off other bills, and find employment or additional employment.

The Negative:

For a period of 1-year or more your mortgage payments could be up to20%-25% higher due to the past due amounts owed after the forbearance period.

Loan Modification

In a loan modification if you don’t have enough money to bring your account current but you can afford to continue making the original mortgage payments on your loan, your lender may be able to take your delinquent payments add them to your original loan and make the monthly payment more affordable. The way that the lender may permanently changed your loan is by lowering the interest rate, making an adjustable rate fixed, adding the missed payments to the back end of the existing loan balance, or they may choose to extending the number of years you have to repay your loan.

The Positive:

You will be able to remain in your home.

The Negative:

Most people do not qualify for a loan modification because of additional debt such as credit cards, car payments, medical bills, and student loans.   Another problem people are running into is that their home has depreciated in value or they purchased their home with little or no money down.

HUD Housing Counseling Agencies located in KENTUCKY

This listing is current as of 08/04/2012.

HUD
Agency Name
Phone
Toll-Free
Fax Number
Email
Website
Address Languages
KCEOC COMMUNITY ACTION PARTNERSHIP, INC. P: 606-546-3152
T:
F: 606-546-5057
E: jsmith@kceoc.com
W: www.povertyisreal.org
PO Box 490
Barbourville, Kentucky 40906+0490
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com
1725 Ashley Circle, Ste 107
BOWLING GREEN, Kentucky 42104-5811
– English
HOUSING ASSISTANCE AND DEVELOPMENT SERVICES, INC. P: 270-796-4176
T:
F: 270-796-8203
E: hands@handsinc.net
W: www.handsinc.net
1133 Adams Street
BOWLING GREEN, Kentucky 42101-2603
– English
KENTUCKY LEGAL AID P: 270-782-1924
T:
F:
E: N/A
W: www.klaid.org
1700 Destiny Ln
BOWLING GREEN, Kentucky 42104-1063
– English
– Spanish
LIVE THE DREAM DEVELOPMENT, INC P: 270-843-6071-7124
T:
F: 270-781-7091
E: eholley@habg.org
W: n/a
247 Double Springs Road
BOWLING GREEN, Kentucky 42101-5160
– English
CATHOLIC CHARITIES, DIOCESE OF COVINGTON P: 859-581-8974
T:
F: 859-581-9595
E: info@covingtoncharities.org
W: www.covingtoncharities.org
3629 Church St
COVINGTON, Kentucky 41015-1430
– English
– Spanish
LEGAL AID OF THE BLUEGRASS P: 859-957-0189
T: 800-274-5863
F: 606-783-1342
E: bcombs@lablaw.org
W: www.lablaw.org
104 East 7th Street
COVINGTON, Kentucky 41011-2502
– English
– Spanish
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com/home.asp
950 North Mulberry
Suite 220F
ELIZABETHTOWN, Kentucky 42701-3612
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com/home.asp
11 Shelby Street
FLORENCE, Kentucky 41042-1612
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com
649 Charity Court
#15
FRANKFORT, Kentucky 40601-4223
– English
KENTUCKY LEGAL AID, INCORPORATED P: 270-782-5740
T: 866-452-9243
F: 270-782-5740
E: scrocker@klaid.org
W: www.klaid.org
1411 South Main Street
HOPKINSVILLE, Kentucky 42240-2017
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com/home.asp
2265 Harrodsburg Road
Stuite. 303
LEXINGTON, Kentucky 40504-3500
– English
COMMUNITY VENTURES CORPORATION P: 859-231-0054-204
T:
F:
E: dmajor@cvcky.org
W: www.asite.com
1450 N Broadway
LEXINGTON, Kentucky 40505-3162
– English
– Spanish
REACH, INC. P: 859-455-8057
T:
F: 859-455-7436
E: kjones@reachky.com
W: www.reachky.com
733 Red Mile Rd
LEXINGTON, Kentucky 40504-1153
– English
– Spanish
ROAD TO HOMEOWNERSHIP, INC. P: 502-647-3027
T:
F: 502-647-3099
E: ybradford@theroadleadinghome.org
W: n/a
121 Prosterous Place Ste A
LEXINGTON, Kentucky 40509-1800
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com
2100 Gardiner Lane Ste 103A
LOUISVILLE, Kentucky 40205-2900
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@apprisen.com
W: www.apprisen.com
11492 Bluegrass Parkway
Suite 110
LOUISVILLE, Kentucky 40299-2334
– English
HOUSING FOUNDATION P: 270-965-2233
T: 866-965-2239
F: 775-213-7867
E: myhomeky@bellsouth.net
W: www.myhomeky.org
330 North Hubbards Lane Office #4
LOUISVILLE, Kentucky 40207-2396
– English
LEGAL AID SOCIETY, INC. P: 502-584-1254
T:
F: 502-584-8014
E: spope@laslou.org
W: n/a
416 West Muhammad Ali Blvd., Suite 300
LOUISVILLE, Kentucky 40202-3376
– English
– French
– Hindi
– Other
– Spanish
LOUISVILLE URBAN LEAGUE P: 502-566-3362
T:
F: 502-568-4663
E: cmccravy@lul.org
W: www.lul.org
1535 West Broadway
LOUISVILLE, Kentucky 40203-3515
– English
NID-HCA SICKLES P: 502-810-9200
T:
F: 502-966-6040
E: nidhca.sickles@gmail.com
W: www.nidonline.org & www.makingyourhomeaffordable.org
3215 Fern Valley Road
Suite 106
LOUISVILLE, Kentucky 40213-3552
– English
– Spanish
THE HOUSING PARTNERSHIP, INC P: 502-585-5451
T:
F:
E: lwood@wearehpi.org
W: www.wearehpi.org
321 Guthrie Grn
Louisville, Kentucky 40202+1813
– English
– Spanish
KENTUCKY LEGAL AID, INCORPORATED P: 270-782-5740
T: 800-782-1924
F: 270-825-0689
E: scrocker@klaid.org
W: www.klaid.org
100 South Railroad Street, # 120
MADISONVILLE, Kentucky 42431-2467
– English
PURCHASE AREA HOUSING CORPORATION P: 270-247-7171
T:
F: 270-251-6110
E: David.Hargrove@purchaseadd.org
W: www.purchaseadd.org
1002 Medical Dr
MAYFIELD, Kentucky 42066-1184
– English
BRIGHTON CENTER, INCORPORATED P: 859-491-8303
T:
F:
E: brighton@brightoncenter.com
W: brightoncenter.com
PO Box 325
Newport, Kentucky 41072+2325
– English
KENTUCKY LEGAL AID, INCORPORATED P: 270-782-5740
T: 866-452-9243
F: 270-683-3513
E: jmorre@klaid.org
W: www.klaid.org
117 West 2nd Street
OWENSBORO, Kentucky 42303-4112
– English
– Spanish
CLEARPOINT FINANCIAL SOLUTIONS, INC. P: 270-443-7917
T: 270-443-7917
F: 270-443-9414
E: hud-inquiries@clearpointfs.org
W: www.clearpointccs.org
118 Bleich Rd
C-Plant Credit Union Building


Paducah, Kentucky 42003+8703
– ASL
– English
– Other
– Spanish
KENTUCKY LEGAL AID, INCORPORATED P: 270-782-5740
T: 866-452-9243
F: 270-782-5740
E: jmorre@klaid.org
W: www.klaid.org
1122 Jefferson Street
PADUCAH, Kentucky 42001-1836
– English
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@cccservices.com
W: www.cccservices.com/home.asp
317 Main Street
PIKEVILLE, Kentucky 41501-1135
– English
APPALACHIAN RESEARCH AND DEFENSE FUND OF KENTUCKY P: 606-886-3876
T: 800-556-3876
F: 606-886-3704
E: dianef@setel.com
W: www.ardfky.org
120 North Front Avenue
PRESTONSBURG, Kentucky 41653-7832
– English
– Spanish
CCCS OF THE MIDWEST P: 800-355-2227
T: 800-355-2227
F: 614-552-4800
E: info@cccservices.com
W: www.cccservices.com
200 E Main St 2nd Floor
RICHMOND, Kentucky 40475-1628
– English
HAZEL JOYCE WILEY CAREER AND FINANCIAL LITERACY INSTITUTE, INC P: 502-647-3072
T:
F: 502-647-3099
E: hjwfinancial@bellsouth.net
W: www.hjwfinancial.org
330 Main Street
SHELBYVILLE, Kentucky 40065-1026
– English
– Spanish
POTENTIALS INC P: 606-416-5711
T:
F:
E: potentials.scarlette@newwavecomm.net
W: n/a
105 Burdine Street
SOMERSET, Kentucky 42501-2311
– English
GATEWAY COMMUNITY SERVICE ORGANIZATION, INC P: 606-743-3133
T:
F: 606-743-1130
E: debbie.vannorman@gcscap.org
W: n/a
124 College Street
PO Box 367
WEST LIBERTY, Kentucky 41472-1115
– English