My husband said there was a small chance we could get an exception and possible get the loan. The requirements on line read:
"A borrower whose previous residence or other real property was foreclosed on or has given a deed-in-lieu (us) of foreclosure within the previous 3 years is GENERALLY not eligible for an insured mortgage. HOWEVER, if the foreclosure of the borrower's principal residence was the result of extenuating circumstances beyond the borrower's control AND the borrower has since established good credit (oh yeah), and exception may be granted."
Okay, I capitalized and I added the parentheses stuff. We did a deed-in-lieu and our credit is super above the 500+ something guidelines. Not too far off the 700 mark.
We paid our mortgage up until we filed bankruptcy. We were NEVER behind!!
As far as extenuating circumstances go, the economy tanked right then. Gas prices soared. First industry to suffer was the car business and my husband lost over $1000 a month in income. We were just happy he still had a job for the most part. I'm not sure if that would count as "extenuating circumstances beyond our control" but I can hope.
So, God help me, I have re-newed hope. It's all in the underwriter's hands now, so to speak. Will they or won't they decided that the economy dump and cut in pay are extenuating circumstances, and will they take into consideration we have NO debt but our van, have built our credit back up (by using credit a little and then paying off), and NEVER missed a mortgage payment.
I know it is a loooooooooooooooooong shot. But if you don't mind saying a little prayer, it couldn't hurt. I know I am.