FHA Credit Guide LInes - Bankruptcy Chapter 7 and 13 Part III

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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

10 PART SERIES


BANKRUPTCY CHAPTER 7 & 13

PART III


Eric Lawrence Frazier, MBA President|CEO|Broker CaLDRE 01143484 | NMLS 461807 800-401-8994 ext. 703 The Power Is Now Inc. CAldRE 1980407 | NMLS 1435243


INTRODUCTION ERIC LAWRENCE FRAZIER, MBA President | CEO | Broker CALDRE 01143484 | NMLS 461807 THE POWER IS NOW INC. CALDRE 1980407 | NMLS 1435243 MEDIA COMPANY ESTABLISHED 2009 Radio | TV | Magazine | Events | Mortgage Services | Real Estate Services ADDRESS: 3739 6th Street Riverside, CA 800-401-8994 ext. 703 eric.frazier@thepowerisnow.com 4


PRESENTATION DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an Equal Housing Lender. Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-4018994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

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YOUR RESOURCE FOR REAL ESTATE WE ARE PROUD SPONSORS OF THE OC REALTIST CHAPTER OF NAREB


THE POWER LUNCH


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MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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VISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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OUR COMPANY MANTRA

WE ARE AT OUR BEST AND WE MAXIMIZE OUR SUCCESS WHEN WE ACT NOW. OUR POWER IS NOW! 18


OUR COMPANY SLOGAN

WE MAKE HOMEOWNERSHIP DREAMS A REALITY

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INTRODUCTION As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage.

www.applytobuynow.com www.neverleaseagain.com

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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

10 PART SERIES


10 PART CREDIT SERIES

Collection Accounts

Judgements Tax Liens

Bankruptcy 7 and 13

Foreclosure and Short Sales

Deed In Lieu of Foreclosure

Credit Counseling.

Debt and obligations

Divorce and Separation

Student Loan Debt.

Strategies to improved your credit scores.


BANKRUPTCY CHAPTER 7 & 13

PART III


BANKRUPTCY The Lender must document the passage of two years since the discharge date of any bankruptcy. If the bankruptcy was discharged within two years from the date of case number assignment, the Mortgage must be manually underwritten.

If the credit report does not verify the discharge date or additional documentation is necessary to determine if any liabilities were discharged in the bankruptcy, the Lender must obtain the bankruptcy and discharge documents.


BANKRUPTCY CHAPTER 7 A Chapter 7 bankruptcy (liquidation) does not disqualify a Borrower from obtaining an FHA-insured Mortgage if, at the time of case number assignment, at least two years have elapsed since the date of the bankruptcy discharge. During this time, the Borrower must have:

OR Re-established good credit

Chosen not to incur new credit obligations


BANKRUPTCY CHAPTER 7 An elapsed period of less than two years, but not less than 12 months, may be acceptable, if the Borrower:

Can show that the bankruptcy was caused by extenuating circumstances beyond the Borrower’s control

AND Has since exhibited a documented ability to manage their financial affairs in a responsible manner.


BANKRUPTCY CHAPTER 7 - DOCUMENTATION If the credit report does not verify the discharge date or additional documentation is necessary to determine if any liabilities were discharged in the bankruptcy, the Lender must obtain the bankruptcy and discharge documents.

The Lender must also document that the Borrower’s current situation indicates that the events which led to the bankruptcy are not likely to recur.


BANKRUPTCY CHAPTER 13 A Chapter 13 bankruptcy does not disqualify a Borrower from obtaining an FHA-insured Mortgage, if at the time of case number assignment at least 12 months of the pay-out period under the bankruptcy has elapsed.

The Lender must determine that during this time, the Borrower’s payment performance has been satisfactory and all required payments have been made on time


BANKRUPTCY CHAPTER 13 And the Borrower has received written permission from bankruptcy court to enter into the mortgage transaction.


BANKRUPTCY CHAPTER 13 - DOCUMENTATION If the credit report does not verify the discharge date or additional documentation is necessary to determine if any liabilities were discharged in the bankruptcy, the Lender must obtain the bankruptcy and discharge documents.

The Lender must also document that the Borrower’s current situation indicates that the events which led to the bankruptcy are not likely to recur.


BANKRUPTCY CHAPTER 7 & 13

PART III


LET GET STARTED NOW First Time Homebuyer www.applytobuynow.com www.neverleaseagain.com Real Estate Professional www.agentsupportnow.com


DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

10 PART SERIES


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