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TJ, Esq.
TJ, Esq., Attorney
Category: Legal
Satisfied Customers: 12216
Experience:  JD, MBA
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I defaulted on my mortgage in 2009. My property was in

Customer Question

I defaulted on my mortgage in 2009. My property was in Florida. It was foreclosed in June 2012. My loan was part of an IFR that was acquired by Everbank Federal Banking regulator, the office of the comptroller of the currency (OCC). Everbank entered into an agreement with the OCC to provide payments related to mortgages that were in any stage of the foreclosure process in 2009 and 2010. Whether or not borrowers on the loan suffered financial injury the minimum payment per loan was $1,050 and it came with an IRS 1099-MISC.
I received the check in 2013 and deposited it.
In 2012 when I ran my credit the foreclosure appeared on Experian, Equifax and Transunion.
In the past 10 days I have been shopping for a loan and my credit has been pulled 5 times and the foreclosure has not shown up on any of them. Additionally I purchased a car in Jan 2016 and the foreclosure did not show up on my credit at that point either.
I am trying to acquire a conventional loan. Everything was going well until it was submitted to the underwriter where it is on hold for approval because they found a foreclosed property associated to my name when they did a property search. My question is was my foreclosure excused in some capacity based on the above so that I can buy a new home? My credit scores are all in the high 720's and I have a 25% debt to credit ratio so I'm trying to determine what my options are as my broker has no idea because he's never encountered this before.
Submitted: 6 months ago.
Category: Legal
Expert:  TJ, Esq. replied 6 months ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.

Q: My question is was my foreclosure excused in some capacity based on the above so that I can buy a new home?

A: No, the foreclosure was not excused. I can't explain why the foreclosure no longer appears on your credit report, but it's not relevant to your question anyway. The point is that you had a foreclosure in the past, it was discovered by the underwriter, and therefore the lender does not have to give you a loan. However, if the lender refuses to give you a loan, it's not due to any legal prohibition. Rather, it would be due to the lender's own policy. Bear in mind that mortgage lenders are private businesses that have the right to determine whether or not to give loans to people with foreclosures in their past. That decision is based upon their own risk tolerances. My suggestion is to apply with a variety of lenders, including credit unions since they are more apt to look past prior credit issues like foreclosures.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, please remember to provide a positive rating via the stars (and note that your positive rating is the only way that I'll get credit for helping you, so it is much appreciated!). Thank you. :)

Customer: replied 6 months ago.
If I signed paperwork to engage one mortgage broker and I'm not happy with their results can I work simultaneously with another one? Are there penalties for not continuing to work with the one that has submitted to a current lender? Or to work with more than 1. I know for example you have a binding agreement with your Realtor unless they are not doing their job well, but even then you have to provide justification for why you want to part ways. I'm not familiar with the terms of a broker.
Expert:  TJ, Esq. replied 6 months ago.

Hi again.

The answer to your follow-up question depends on the paperwork that you signed. Does your contract prohibit you from working with another broker? Does it have penalties? The bot***** *****ne is that the contract itself should answer these questions. What does it say?

Customer: replied 6 months ago.
All I can find is a comment stating that I can withdraw my esign with consent at any time. I don't see anything binding. I'm not attorney though so I'm not sure what to look for, is there a specific section or a keyword I should look for?
Expert:  TJ, Esq. replied 6 months ago.

Well, the language should be pretty clear if you are bound to use the broker. For example, there should be beginning and ending dates. Look for the words "liquidated damages." Anything like that?

Customer: replied 6 months ago.
I looked through all the documents and don't see anything at all. I believe they are open tomorrow so I can call and inquire but what do you mean by recommending I apply to a number of lenders? All the institutions I have reached out to to get a price quote require me to fill out all their documentation and terms prior to them working with their lender.
Customer: replied 6 months ago.
By institutions I mean Mortgage Brokers, banks and Credit Unions. I went to 27 different businesses to loosly discuss what they could offer me and some gave me price quotes and ran my credit, but none would submit anything to a lender until I esigned their application disclosure package. So I am just confused how to go directly to the lender so the underwriter can come back with a thumbs up or down.
Customer: replied 6 months ago.
Are you still available?
Customer: replied 6 months ago.
TJ, I have not changed the topic and am addressing questions for clarification from your original reply? Let me know if you can no longer assist me?
Expert:  TJ, Esq. replied 6 months ago.

Hi again. Thanks for your patience, as I had logged off for the evening shortly after my last reply.

Q: but what do you mean by recommending I apply to a number of lenders?

A: I mean that various lenders have different internal policies regarding whether or not they will give loans to people who had a prior foreclosure. Accordingly, you have a better chance of successfully getting a loan if you apply to multiple lenders. If I were you, I'd sign the application disclosure package if that's what it takes to find out if you're approved. That doesn't obligate you.

Expert:  TJ, Esq. replied 6 months ago.

Hello again. I didn't hear back from you, and you haven't yet rated me, so I'm just checking in to make sure that you don't need more help on this issue.