FHA Clause Re: Foreclosures

[Watsonsbag]

Well, after receiving one blow trying to do a short sale, I check out the FHA guidelines and find they won't lend to anyone with a foreclosure on their credit report.

So, predatory lenders can make your life miserable, cause bankruptcy, cause loss of your home and also prevent you from getting an FHA mortgage. And still they are allowed to operate legally and take advantage of people, especially the elderly and disabled.

We might as well just forget about ever owning another home. Gee, maybe we could use the $271 for a downpayment. Thanks, Household.

Just thought I'd pass that tidbit along.

[sisflomi]

It won't be on your report forever. I too happened upon that bit of info myself tonight. I am lucky enough that my mortgage never showed up on my reports. They went bk before I did, maybe thats why. There are other ways around this. Call your local credit unions and see what they have to offer. Save as much as you can, the more you have the better your rates will be. If all else fails, check out first franklin and see if they can help you. Don't give up hope, you will again be a home owner just like everyone else thats on this board will be.

[chingasaholo]

you have a chance at getting a sub-prime loan with a foreclosure, but charles or mortgageman would be able to give you better advice there. as far as ACORN, look's like they turned their sights to wells fargo as they are the "bigger fish", wells isnt really big in the sub-prime market as household is....so they give better press. ACORN seems like a decent group and have done some decent things but most of their website seems dedicated to showing off press-clips. They are "activists" so obtaining the greatest amount of press for their cause is par for the course. I'm sure once the wells fargo thing dies down and doesnt generate any more press (and it will) then they will again turn their sights toward household again.......

[Watsonsbag]

Thanks to everybody for their replies. Here are my thoughts, for what they're worth :D

I've had a warning about First Franklin. Seems they do the initial mortgage and then sell it off to some dubious predatory lender. Gotta watch that one!

There really are no credit unions around here. And we are finding it impossible to save, no matter what. I don't even get a lot of medications because they are simply way too much money. Not having access to much credit (hubby got a card with a $300 limit) it's cash for anything else. For instance, two teeth had to be extracted at a cost of almost $400; if we had credit they could have been saved with a root canal. One of our cars needs a bit of repairs but we can't afford it and so are driving it around until it finally gives out. :( The lawnmover took over $400 to get it going again (lawn tractor, actually). And so on....

It seems renting a place is even more expensive then when we were paying on the house. It really hurts to make out that rent check every month knowing that even at rates around 9 or 10%, it would be buying a $140,000 house, not that we would want one that expensive. And never having been late on a mortgage payment EVER really galls. Now wouldn't some lender rather be getting that payment instead of an individual?

Sorry but it feels better to unburden these things, and this seems the best place because people here have been through just about everything.

About Acorn, we are stopping our monthly donation to them. They have given in to the settlement, and I have other suspicions about them as well. On www.acornhousing.org there is a full page urging people to take the settlement. Yet several months ago they were telling victims not to sign for it. I just doubled checked our award amount--$251. I think ACORN might have been paid off, scared off, or just think that now they can get better press out of Wells Fargo. IMO, they simply abandoned their Household victims.

Something else...do you notice how they never emphasize credit scores, credit reports and how to dispute them etc.? Also find that very suspicious. Without low scores, there would be little predatory lending, meaning fewer complaints, meaning maybe ACORN would not be necessary? Just something to think about. I am furious over their acceptance of this ridiculous settlement and can't help but question their motives.

If we don't get out of this renting thing, I'm going to lose my mind. Every lender involved in our mortgages after the initial one have all been suspected of fraud and/or illegal practices. Here's the list--Delaware Savings Bank, Lehman Bros., Wells Fargo, Greentree, Conseco and Aurora. Everyone given the label "predatory" by a number of groups and individuals.

This is a warning to people to check those credit scores! We didn't know any better. At the time when we refinanced with the scumbags, our credit scores were quite a bit over 700! But we didn't know this, we were lambs to the slaughter. One mark of a bad loan is when the consumer could easily have qualified for a better rate and the lender knows this but tries to convince them they are a bad credit risk. Always keep on top of your scores and know where you stand. We must start to demand fairness in all transactions.

If someone reads our credit reports, it's fairly obvious what happened with so many "paid, never lates", no collections and the word Household appearing about 5 times. This is such an injustice, especially thinking about starving, cutting down on medications, selling precious heirlooms, just to try and keep paying these crooks until finally we were left with $8.00 to our name. Yes, that's all we had when we filed BK, and still we tried to do a Chapter 13, against legal advice because we wanted to "do the right thing". Of course, that just brought on over a year of more misery.

Thanks for reading all this. Hopefully it will help someone avoid what happened to us.

Everyone have a great holiday weekend!

[chingasaholo]

you have a good weekend yourself, and dont let the man get you down!


jl