Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan

credit scores will fare after a short sale or foreclosure
Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan


Kentucky Mortgage Short Sale:
Conventional Loans Require:
Minimum 2 years with restrictions up to 7 years
2 to 4 years – 80% maximum LTV
4 to 7 years – 90% maximum LTV
7 years and after allow for maximum standard financing
Kentucky FHA and Kentucky VA Loans Require:
3 years, with exceptions possible for less time if borrower’s credit and mortgage payments were in good standing prior and up to date of Short Sale
  Kentucky Mortgage Foreclosure:
Conventional Loans Require:
7 years, with exceptions considered between 3 to 7 years if significant extenuating circumstances exist
Kentucky FHA and Kentucky VA Loans Require:
FHA: 3 years, with exceptions possible for less time if significant extenuating circumstances exist
VA: 3 years, with exceptions possible for less time if significant extenuating circumstances exist
Please contact me for a free mortgage pre-approval or with questions!


Joel Lobb
Senior  Loan Officer
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

text  or call phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73344


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FHA changes may aid those who lost homes

FHA changes may aid those who lost homes.

Kentucky FHA changes may aid those who lost homes

The Federal Housing Authority has shortened the mandatory waiting periods for an Kentucky  FHA-insured mortgage loan for those who have undergone foreclosure, deed-in-lieu, taken a short sale or declared bankruptcy during the economic recession.


Through its new program, Back to Work—Extenuating Circumstances, the waiting period for most borrowers is now just 12 months instead of the typical three, seven or 10 years. Both first-time and repeat home-buyers can apply. “Most people do not know this program has been released, and are only renting because

If you feel like you qualify for this and live in Kentucky, please call or email me with your questions and I would be glad to see if you qualify for the new Kentucky FHA Program for free.


Joel Lobb (NMLS#57916)
Senior  Loan Officer
American Mortgage Solutions, Inc.
 800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
((502) 905-3708 |

FHA changes may aid those who lost homes

FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire

FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire.




Kentucky Mortgage after a bankruptcy, foreclosure, short sale approval
by: Tracy L. Hirsch, Attorney

One of the hardest decisions a family has to make is deciding to surrender their home in a bankruptcy proceeding. Often times, this means allowing a home to go through the foreclosure process and discharging their mortgage obligations in a Chapter 7 bankruptcy. Many homeowners are concerned about the foreclosure process and their obligations to their mortgage company once their bankruptcy process is complete.


Often times, when a person chooses to surrender their home in bankruptcy, he is in the middle of the foreclosure process. Filing a bankruptcy petition creates an automatic stay, which puts an immediate halt to the foreclosure process.

The mortgage company may then choose to either file a motion with the court to re-start the foreclosure process (called a motion to terminate the automatic stay) during the 90 days of the Chapter 7 process or wait until the Chapter 7 is discharged to initiate the process again. Either way, foreclosure is a long, legal process and it often takes anywhere from four to eight months for the house to be sold at the foreclosure sale. Regardless of when the bankruptcy is complete, the home still belongs to the homeowner until the home is sold at the commissioner’s sale.

In order to understand why bankruptcy may not be immediately necessary in order to get out from under a mortgage, one needs to understand how the foreclosure process works. In most states, including Kentucky and Indiana, creditors are required to utilize a process called judicial foreclosure.

The way it works is this. Once there has been a default, the creditor initiates the foreclosure process by filing a Complaint in the Circuit Court of the county where the property is located. The creditor must then obtain service of the Complaint on the debtor in a manner permitted by law. Once service has been obtained, the debtor then has 20 days to answer the Complaint. The purpose of this is to allow the debtor to assert any defenses that he may have. If the debtor fails to file an Answer to the Complaint, then the creditor gets a default judgment.

After obtaining a default judgment against the debtor, the creditor may then proceed to obtain a sale date. Normally it takes at least 4 months or longer from the time of service of the Complaint until the sale date. On the sale date, the property is auctioned off at the courthouse to the highest bidder. The proceeds of the sale are then credited to the loan, and what is left over, referred to as the deficiency balance, is what the debtor owes the creditor.

If the property sells for enough to cover the balance of the loan, then there is no debt that is owed by the debtor. So until such time that the property actually sells at foreclosure, it is impossible to know for sure how much the debtor will actually get stuck with. So if you owe $150,000 on your mortgage, this does not mean that you personally are on the hook for that amount. If the house sells for $140,000, then you only owe the $10,000 difference.

So before you decide that you need to file bankruptcy solely because your home is going into foreclosure, you may want to wait and see what the outcome is from the foreclosure sale. You may owe less than you think. Now if you have other reasons for filing bankruptcy, such as credit card or medical debt that you can’t pay, then it makes sense to go ahead with the filing. But if it is all about your mortgage, you may want to wait and see what the damages are before pulling the trigger on a bankruptcy filing.

Joel Lobb
Senior  Loan Officer

Text or call phone: (502) 905-3708

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the views of my employer. Not all products or services mentioned on this site may fit all people



Credit Scores required for A Kentucky First Time Home Buyer in 2013

Have you ever thought what kind of credit score it takes to buy a home in Kentucky in 2013. I have supplied some examples below for Kentucky First Time Home Buyers so they can arm themselves with some knowledge and feel comfortable and confident when they take that step to get pre-approved to buy a Home in Kentucky


Interested in understanding how far a credit score can drop with late payments, foreclosure, short sale activity or bankruptcy?


This should give you an idea:


30 days late: 40 – 110 points

90 days late: 70 – 135 points

Foreclosure, short sale or deed-in-lieu: 85 – 160 points

Bankruptcy: 130 – 240 points


To come to these figures, Fair Isaac created two hypothetical consumers, one who starts out with a fair-to-middling score of 680 and the other with a very good one of 780. (FICO scores range from 300 to 850.)


The hypothetical person with the 780 FICO has 10 credit accounts versus six for the 680, plus a longer credit history, lower utilization of total credit limit and no missed payments on any account. The other consumer has two slightly damaged accounts. Neither have any accounts in collection or adverse public records.


Borrower #1  Borrower#2

680                         780                    Initial Score

620-640                670-690                30 Day Delinquency

595-610                645-665                90 Day Delinquency

575-595                620-640                Foreclosure Short  Sale

530-550                540-560                Bankruptcy

Source: Fair Isaac Corp. 




Kentucky Mortgage Loan Approval Credit Requirements for 2013