“Can I buy a home with a CAIVRS ALERT?”
CAIVRS stands for Credit Alert Verification Reporting System and it is a system maintained by the federal government that lists persons who have defaulted or had a loan foreclosed within the last three years on a debt owed to the Federal government or are currently delinquent on a debt owed to the Federal government. Examples of Federal debts include previous FHA or Veterans Administration home loans.
For a borrower that had a FHA mortgage foreclosed upon, that borrower is not eligible to apply for another FHA mortgage until three years after the date that HUD paid the insurance claim to the lender.
This is the key sentence.
Unfortunately, the clock on the 3 years waiting period does not start ticking until the Lender takes legal ownership of the property, files the claim with FHA and FHA pays the claim.
We have had several prospective buyers recently that had problems 3 to 6 years ago. They left the home and turned the property back over to the lender. But, the lender, didn’t actually transfer title into their name for months and in some cases years!
We successfully pleaded the cases for the prospective buyers and were able to get CAIVRS Alerts cleared. We documented the transfer should have taken place over 3 years ago, and it was not the prospective buyer’s fault that the lender did not file the claim until months or years after they reasonably should have done.
“Can I buy a home with a Foreclosure, Short Sale or Deed in Lieu in less that 3 years with the FHA Back to Work Program?”
“Can I buy a home with a Bankruptcy less that 2 years with the FHA Back to Work Program?”
We also have closed several FHA “Back to Work” loans. FHA allows exceptions to the 3 years waiting period for prospective borrowers who suffered a Economic Event that resulted in a severe reduction in income due to a job loss or other circumstances resulting in reduced Household Income. and the borrower has demonstrated full recovery from the event for a minimum of 12 months.
As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income, were unable to make their monthly mortgage, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file bankruptcy. FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.
|Here’s the Bottom Line:
Call us 1st to AVOID mortgage problems,
Call us 2nd to SOLVE them!
We close loans every day that Banks would not,
or could not approve.
J. Scott Harris
Vice President – Mortgage Miracle Working – NMLS #375517
Closing FHA / VA & USDA Loans at 580+ in Texas, Oklahoma & Louisiana
885 E. Collins Blvd. Suite 110
Richardson, TX 75081
24/7 Mobile: 214-435-8825
Secure Fax: 866-343-3688
Gold Financial Services, Inc. is a division of Amcap Mortgage, Ltd. NMLS# 129122