new mortgage after settling previous second mortgage

new mortgage after settling previous second mortgagenew mortgage after settling previous second mortgage
Edwardkig asked 4 years ago

I will be looking for a new FHA  mortgage in the next year or so.  I just finished a modification on my current mortgage, the second mortgage on this house though was charged off.  They have given me the opportunity to settle.  I’m trying to decide if settling is the correct path for me, knowing that i’m hoping to get another mortgage in the next 12-18 months.

 

I spoke with one lender who told me that a settlement of a second morrgage is considered similar to a foreclosure and that would disqualify me for a new mortgage.  Is this standard across the board or is this lender just being conservative?

 

They are offering a substantial settlement, but i dont want to take it if it will kill my chances for a future mortgage.  Not sure what other options i have….

 

interested in hearing everyone’s thoughts.

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