PennyPinching

Our Chapter 7 finalized in July of 2012 with no reaffirm for our FHA mortgage through Carrington Mtg. We have "paid and stayed" ever since. What are our options for FHA refinancing? Is it even possible? History behind my question: My reason for focusing on the FHA option is primarily my mortgage score. My standard credit score per FICO is 650, but my middle mortgage score per FICO is 595. EQ=595, TU=613, EX=570. The mortgage score is the slowest to climb upward but it is climbing! For example, in July I had an EQ low of 559 which is now 595. My score is still so low likely due to poor student loan payment history until the last two years. My last late on credit cards is from January of 2020. My credit cards have been current and also paid off since January and I recently received my first unsolicited CLI last month. I also paid off all collections. Clearly, I am finally and really in the rebuilding phase. Time is probably my biggest friend regarding my score. Income is not a factor anymore as my wife is working fulltime as an RN which has practically doubled our income. Thanks for your advice!

Thank you for posting your experience. Does this type of loan equate to a standard signature bank loan or are there some protections for the lender from the government? I ask because I was wondering how those with fair to good credit would do on a similar attempt?

Me too. Wally-World and I have a love/hate relationship anyway. LOL

Try to PIF on this card. I carried a balance and my CL was reduced several hundred dollars over a period of three months down to $390 at this present moment...

I'll have to look at the letter again but I believe it was because of our loan to value ratio...

Hi Brian, good to hear from you. Honestly, it won't be the end of the world if the mod falls through, but it would be very helpful if it doesn't... I need to make it until December when my wife graduates from nursing school (after 5 years!) and our income will be such that it's no longer an issue. At that time, we will pursue a refi when our credit scores creep higher. Is the mortgage insurance drop any issue? I am hoping that in itself will lower my payments a bit...

Anyone know who Carrington Mortgage Servicing is? I just picked up the pieces of a foreclosure scare with B of A (brought loan up to date), and was going through a modification when I received a letter that 1) "congratulations" my mortgage insurance is no longer needed, followed by another letter a week later, that 2) "the servicing of your home loan will transfer to Carrington Mortgage Services, LLC on August 1, 2014". I haven't received any other communications from Carrington. I called them to get more info but was on a super long hold with a recorded message, "for those who received notices of loan transfer" to wait for a letter from Carrington. Was there a mass sell-off of loans by B of A? I'm not totally comfortable with the thought of this new company after what I've read elsewhere online... but I've not much choice!

So, as a follow up, I ended up using my 457b deferred comp account to bring myself current. Then, my loan servicing agent at B of A told me that I should still ask for a loan mod based on hardship, so I did submit all the paperwork. We received the obligatory letter that all of our paperwork has been received and they will get back to us. Then, I received notice (crossing in the mail) that my loan was sold to a place called Carrington Mortgage, of which I haven't read anything particularly good... So, we are now current, but, waiting on word from either B of A or Carrington for the ongoing mod. B of A says Carrington will abide by the same criteria that B of A did for determining mods. We'll see.... Oh, also, B of A notified me that my mortgage insurance was no longer needed, and "congratulations" on having it removed. (Mixed bag I guess).

Received reinstatement today. 6 months payments =$9008. Fees bring it to $11,200. But, they say if I pay in full I won't have to pay the fees. I have a call in to make sure EXACTLY what to pay.... The saga continues but seems to be turning for the better. (Still praying!)

I know I am answering alot on my own post, but this may help someone else in my position. After talking with Money Management International (suggested by FHA), they told me to call B of A and request a reinstatement total through May and pay it. I guess the wording we choose is critical here. I asked B of A if I could pay on my loan and they said no, but if I would have asked to "pay what is owed in full", or "reinstate amount", then I would be in business. So, I am now waiting for that amount to arrive and will be praying that I have enough!! I will repost with results.

Thanks for the info RedHairedLady. But, I am hoping to retain the home and get caught up in payments, not walk away. Were you indicating that I might have more time than anticipated in avoiding the foreclosure? I'll post back my results with B of A.

Can I simultaneously contact the B of A MHA Escalations Unit? Guess I could call them and see what they think. It is an FHA loan, could I contact FHA? What are my bottom line options to stay in the house? I am behind a total of 4 (maybe 5 by now) months and could actually pay to get up to date if they would let me. Then I can go all out to maintain at any cost, paying on time as my wife will be working soon and things WILL get better.

OK. Printed pay stubs, looked at bank records, printed gas, electric, credit cards, mortgage payment, etc... I am positive $80, not negative, not even counting my wife's student loans & grants she receives for nursing school. That is another $400 per month. I think the lady was using some numbers I gave her years ago. This is better news. I won't bother calling back but will wait for her call. I've got everything printed out in preparation as I know they will want it all! Please let me know if there is something besides modification we can do to stay in the home until we can really hammer the debt when my wife starts working in 6 months... Our income will literally double when she starts work. Thanks!

Yeah, that $350 is using rough numbers. I am sure I can get it closer to zero. It was one of those, on the phone, quick "what do you pay for this and that" question(s)... I wonder if we could not modify and have some other way to catch up? I recently sold a vehicle, so I could make a large payment that would cover most, if not all, of the arrears payments. But they told me I can't pay anything today until I hear from my Customer Relations Manager. The kicker is, my wife will be graduating from her nursing school in December and has a job lined up already. We should be golden if we can hang on until then. The paperwork received today shows September as the "Sale date".. So stressful!

So, we are behind about 5 months and received a notice today that B of A started a foreclosure process. I called B of A and was told to start a modification request, which I did. After they asked me all these income and expense questions, we ended up about $850 negative. But, I forgot to mention a second income that I have of $500/mo. This would make us, just roughly, $350 negative. Think we will be OK? This is freaking me out, not to mention my wife! We are supposed to hear back by Tuesday, latest on the prelims. The house was non-reaffirmed in our BK about two years ago. What should I ask for or do?? Just hang tight??