+1 vote
asked in Mortgage by
Borrower shows a mortgage charge off and last late date is 5/2015.  Do we use this date to determine the age of the derogatory rating?

1 Answer

+1 vote
answered by
Is it a first or second mortgage? Second mortgages or HELOC's does not have any waiting period requirements. If it is a first mortgage, then the 3 year waiting period start date on FHA Loans is the date that the deed of the property has been transferred out of your name into the name or the lender and/or someone else that is reflected on public records. It may be the 5/2015 date. Check with public records in the county where the mortgage charge off was recorded and see the date where your name got off the title. That date is the actual start date. Or email us at gcho@loancabin.com or call us at 262-716-8151 or text us for faster response.
commented by
Thank you for your quick response.  I am the underwriter and this is for our borrower.  It is on a first mortgage.    Per county online records, it was a private sale from borrower to an LLC.   Borrower explained it had a small deficiency balance which was finally reviewed and forgiven by the lender in Oct. 2016.  

Would you consider the transfer date of the property in 2014 as the completion date in this case? It does not appear the home has ever gone through the foreclosure process.