HIDDEN FEES TO BE AWARE OF WHEN PURCHASING A HOMEPurchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will
How long does that affect my credit (USDA)
Dated: October 23 2012
This is the final installment in the series of how long derogatory information stays on a credit report after a negative credit event listed below. In this economy things have been uncertain in the past. Although things have gotten much better since the melt down of the markets there are still many people who due to circumstances beyond their control were unable to meet credit and loan obligations. Being the last installment in the series I hope the information has been helpful to those that have suffered from the economy to see that there is light at the end of the tunnel and setbacks suffered along the way are not the end of the road in the drive to financial success but just a momentary detour in the quest for home ownership.
USDA (Determined by the date of Credit Approval)
Deed in Lieu of Foreclosure
Home was given back to the bank no owner participation.
Deed in Lieu: Home was given back to the lender in exchange for canceling the loan.
Short Sale: Home sold but sales price didn’t cover amount owed.
3 years from the date the foreclosure was completed and transferred back to the bank may be considered with acceptable extenuating circumstances.
Less than 3 years from date the foreclosure was completed and transferred back to the bank may be considered with acceptable extenuating circumstances.
Bankruptcy Chapter 7
Debts are discharged through Bankruptcy, client does not pay any debts owing
3 years from date of discharge
Less than 3 years from date of discharge may be considered with acceptable extenuating circumstances.
Bankruptcy Chapter 13
Debts are paid back on a monthly scheduled payment plan by client
1 year from date repayment was completed and bankruptcy discharged
Less than 1 year from date of discharge may be considered with acceptable extenuating circumstances.
*** Examples of extenuating circumstances for a USDA loan (circumstances must be verified and documented.)
Loss of job; delay or reduction in government benefits or other loss of income; increased expenses due to death, etc. Circumstances surrounding the adverse information must have been temporary in nature, and beyond the applicant’s control, and have been removed so their reoccurrence is unlikely or the adverse action, delinquency was a result of a refusal to make full payment because of defective goods or services or as a result of some other justifiable dispute relating to goods or services purchased or contracted for.
Source:THINKBIGWORKSMALL; The RE Resource, The Real Estate Resource(pub.)
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