Posted on: 25th Jun, 2010 08:14 pm
Hello. My name is currently on the mortgage but not the note of a property that is about to go into foreclosure. I am applying for an FHA loan and would like to know if this will hinder me from being approved on a new loan since I do not technically owe any money on the other property. I have been pre approved by the bank for my new home and have already made an offer on the new home. Is FHA going to deny me since I am listed on the deed of another property even if I don't owe any money on it? Thank you1
"If your name is mentioned on the property deed of your other property and if it is sold off at a foreclosure auction, then it won't hinder your chances of getting a FHA "
This answer is incorrect. Section VIII Item C of the universal residential loan application specifically asks:
"Have you had property foreclosed upon or given title
or deed in lieu thereof in the last 7 years?"
If you were on title to a property that went into foreclosure you must answer yes to this question. It does not matter if you were on the mortgage or not. Answering yes to this question will most likely disqualify you from purchasing for an extended period of time.
This answer is incorrect. Section VIII Item C of the universal residential loan application specifically asks:
"Have you had property foreclosed upon or given title
or deed in lieu thereof in the last 7 years?"
If you were on title to a property that went into foreclosure you must answer yes to this question. It does not matter if you were on the mortgage or not. Answering yes to this question will most likely disqualify you from purchasing for an extended period of time.