Wife's gets new FHA loan during husband's foreclosure

Posted: Wed Sep 09, 2009 2:19 am

My husband bought a home with a conventional mortgage in Florida prior to our marriage. I am not on the the note or deed. For an FHA loan, it is my understanding that he would be considered a "non-purchasing spouse" and would not be required to provide his credit report/debts in a non-community property state such as Florida. However, my true question is would I be automatically denied a new FHA loan *in my name only* on a new home once underwriting discovers my husband's home (and the home I live in as well) is currently being foreclosed on? I have searched to the end of Google and back looking for this answer. Any expert thoughts?

Posted: Fri Sep 11, 2009 5:57 am

He is not on the new loan, so it does not matter. Although, on an FHA loan, to be on the deed you must me on the note as well, so he could not be on the deed for the new property you are purchasing. The only way you would run into a problem is if you lived in a marital state (FL is not), which requires both husband and wife to be on the mortgage. My only question is why is the house in foreclosure? If you can not afford it how are you going to afford the mortgage payments on the new home? The loan can be done, but this is not a loan I would personally do as an originator.

Posted: Fri Sep 11, 2009 10:53 pm

We desperately need a less expensive mortgage payment. My husband's employer went out of business and I am 2 mos pregnant. The American dream right? We are currently paying $1700 a month and can now only realistically afford about $800 per month with his new job that he commutes over an hours to get to. We've been trying to modify our loan for 6 months and continue to get the runaround with Flagstar. We live in Port St. Lucie, Florida, one of the top foreclosure cities in the US where our $175K home is it now worth about $80K so we can't sell. The jobs are non-existent here and at this point I'm just fed up. I would rather buy this same house for $80K in the next neighborhood over and do what's best for our family.

Dud? Joined: 07 Feb 2012 Posts: 3

I would suggest looking into Payday Loans for People with Bad Credit because they are a good option if you do not have very good credit. Also, if you need to buy a car there are many Bad Credit Auto Loans. If you can, try to get a secured bad credit loan because you will get a better interest rate than if you do an unsecured bad credit loan. Hope this helps Smile

mizmgmt wrote:

We desperately need a less expensive mortgage payment. My husband's employer went out of business and I am 2 mos pregnant. The American dream right? We are currently paying $1700 a month and can now only realistically afford about $800 per month with his new job that he commutes over an hours to get to. We've been trying to modify our loan for 6 months and continue to get the runaround with Flagstar. We live in Port St. Lucie, Florida, one of the top foreclosure cities in the US where our $175K home is it now worth about $80K so we can't sell. The jobs are non-existent here and at this point I'm just fed up. I would rather buy this same house for $80K in the next neighborhood over and do what's best for our family.

Dud? Joined: 01 Oct 2009 Posts: 14

ignore the payday loan person - an obvious scam.

if YOU are not obligated on the mortgage being foreclosed on AND you qualify for a mortgage on your own AND you don't live in a community property state, the technical answer is "yes" - you can do this. since you would be the sole borrower, the credit report used would be for you only. since you are not on your husband's mortgage, it would not show up on your credit report and therefore, not be an issue. the "declarations" section of the loan application asks if you are in or have been in foreclosure (essentially) - technically your answer would be "no" and would be an honest answer. I'm not passing any judgement - just giving you the facts. I've been a DE underwriter for 20+ years (and am still currently). because your husband will have to sign the mortgage has no bearing on the mortgage transaction. he is signing for enforcement purposes only. I wish you luck.