Post Foreclosure Resrictions

[Bernard Chouinard]

Could really use some advise on trying to obtain a 2nd mortgage for home repairs and maybe even down payment of a multi.

Here’s the background.

2007 – Friend of mine and I bought a duplex for us to both leave in (one on each side) but due to it having 1 inlet for water/sewer the town/mortgage/deed set it as 1 building rather than 2 individual units with separate mortgage.

2010 – Friend (now ex) couldn’t make any further payment, refused to do much of anything forcing me to foreclose and certainly not from a lack of trying to work within them or get them out and take over the note.

2012 – bought a new house, 100% under my wife’s name.

Sept 2014 – Citibank, owner of the original note, sold the note.

June 2016 – official transfer of deed and foreclosure is officially final.

The house we bought in 2012 and live in today was a short sale that needed some rehab. Last 3 years of done of a ton of it now I want to pull equity to finish it off. ARV $269K total owed on loan $134K so tons of equity there.

My wife: since we were using her credit and she doesn’t make that much her debt:income ratio is too high to qualify for a loan. Today my credit is great at low 700’s, and I’m the breadwinner of the family with lower debt:income ratio but my foreclosure is stopping us form getting a 2nd mortgage. Bank tells me I will be eligible as of Sept 2017 based off of transfer of loan from Citibank but I think she is wrong as everything I read says 3 years from date of foreclosure making me eligible June 2019.

Is there ANY suggestions on going around this? I’ve though portfolio lenders that might make a decision based on my situation but I can’t seem to find one that will ignore that foreclosure. Any and all help would be really appreciated!