10-25-2020  6:56 am   •   PDX and SEA Weather
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NORTHWEST NEWS

Candidate Iannarone Welcomes Ruling on Complaint Against Mayor Wheeler

Mayoral challenger Sarah Iannarone has welcomed the Multnomah County Circuit court ruling requiring City Auditor Mary Hull Caballero to look into a complaint against Portland Mayor Ted Wheeler for loaning his own re-election campaign 0,000

Some Hospitals in Crisis as US nears high for COVID-19 cases

The global surge in coronavirus infections is hitting the United States hard and overwhelming hospitals across the nation

Report: Seattle Officers Used Excessive Force at Protests

Since May, the office has received 19,000 complaints about police misconduct during protests.

PSU’s Black Studies Department Grows, Offers Students Immediate Support

Chair Ethan Johnson announces new hire and COVID-19 Relief Fund

NEWS BRIEFS

How Martin Luther King Jr. Boulevard got its Name

Oregon Historical society has republished Publisher Bernie Foster's account of how activists persuaded Portland to rename Union Avenue...

New Crisis Line will Serve BIPOC Community

Lines for Life have launched a new crisis line dedicated to and staffed by Black, Indigenous and People of Color ...

Oregon Reports the Highest Daily Case Count Since the Beginning of the Pandemic

OHA reports 550 new confirmed and presumptive COVID-19 cases, 3 new deaths ...

Thursday, October 22: All Registered Voters Should Have Received Their Ballots

Contact Multnomah County Elections TODAY if you have not yet received your ballot in the mail. ...

Forest Service Now Hiring

Agency accepting applications for more than 1,000 seasonal positions in Oregon and Washington ...

Crews vacuum 'murder hornets' out of Washington nest

BLAINE, Wash. (AP) — Heavily protected crews in Washington state worked Saturday to destroy the first nest of so-called murder hornets discovered in the United States. The state Agriculture Department had spent weeks searching, trapping and using dental floss to tie tracking devices to Asian...

Roseburg VA police officer accused of placing hidden cameras

ROSEBURG, Ore. (AP) — A Roseburg man who works as a police officer at a Veterans Affairs hospital has been accused of hiding cameras in the bedroom of a young teen. Detectives began investigating after the cameras were found in the 14-year-old’s bedroom, the Douglas County...

Missouri grinds out 1st victory over Kentucky in five years

COLUMBIA, Mo. (AP) — Missouri kept handing the ball to Larry Rountree, and Kentucky barely got a chance to take a turn. Rountree carried 37 times for 126 yards and two touchdowns as the Tigers dominated the clock and the Wildcats in a 20-10 victory on Saturday.Missouri (2-2 Southeastern...

Humbled LSU eyeing QB contingency vs surging South Carolina

BATON ROUGE, La. (AP) — LSU coach Ed Orgeron was grateful for an extra week to help the Tigers confront considerable challenges on both sides of the ball.He’ll have to hope that’s enough time for the unranked Tigers (1-2, 1-2 SEC) to turn back South Carolina (2-2, 2-2), which...

OPINION

The Skanner News National 2020 Election Endorsements

Vote like your life depends on it. Read The Skanner News' endorsements for US President, and more ...

The Skanner News Statewide Election 2020 Endorsements

Read The Skanner News' endorsements for Portland Mayor, Portland City Council, and more ...

Muslim Advocates Denounces Trump’s Racist Attacks on Rep. Ilhan Omar and Refugees

The organization says Trump’s attacks invite violence against Rep. Omar and Minnesota’s Somali community ...

Trump and the Lost Country

Discussing the debate, Robert Koehler refers to an article by psychiatrists describing how power causes brain damage ...

AFRICAN AMERICANS IN THE NEWS

Black woman shot by officer seeks justice from hospital bed

WAUKEGAN, Ill. (AP) — A Black woman who was shot and wounded inside a vehicle by a police officer who also fatally shot her 19-year-old boyfriend on Satuday told about 200 people gathered at an emotional rally in suburban Chicago that she's fighting “to be strong" for her son. The...

Attack, then pandemic: Pittsburgh Jewish congregations cope

Two years ago, the three congregations sharing space at Pittsburgh’s Tree of Life synagogue relocated after an anti-Semitic gunman killed 11 worshippers. Last March, the congregations dispersed from their new locations due to the coronavirus pandemic and switched to virtual services. On...

Fields, No. 5 Ohio St run away from Huskers in opener, 52-17

COLUMBUS, Ohio (AP) — Justin Fields and No. 5 Ohio State shook off the rust in the first half and then buried Nebraska the rest of the way.Fields completed 20 of 21 passes for two touchdowns and ran for another, Master Teague III rushed for a pair of scores and the Buckeyes rolled over...

ENTERTAINMENT

Kevin Hart: Hosting MDA telethon is a 'major level-up'

LOS ANGELES (AP) — Kevin Hart says hosting a re-imagined online fundraiser for the Muscular Dystrophy Association is “a major level-up for me.”“It’s different from anything that you’ve really seen me do. And there’s a great reason behind it,”...

Sandra Oh celebrates Asian culture in film 'Over the Moon'

NEW YORK (AP) — Sandra Oh’s role in the new animated feature “Over the Moon” may not be her largest, but it has deep meaning.The story is set in China and Oh voices the stepmother of a girl named Fei Fei, grieving after the loss of her mother. So she builds a rocket to...

Film depicts Black Lives Matter, #MeToo as new feminist wave

LOS ANGELES (AP) — The documentary genre’s power of immediacy is evident in “Not Done: Women Remaking America," which includes the still-unfolding possibility of the first Black female vice president and the loss of Breonna Taylor.The film depicts a powerful female-driven...

U.S. & WORLD NEWS

Stumbling stunner! Rays shock Dodgers in 9th, tie Series 2-2

ARLINGTON, Texas (AP) — Brett Phillips squatted on the field crying, Randy Arozarena sprawled in the dirt...

Malaysia's king rejects PM's proposal to declare emergency

KUALA LUMPUR, Malaysia (AP) — Malaysia's king on Sunday rejected a proposal by embattled Prime Minister...

Thai protesters rally ahead of parliamentary debate

BANGKOK (AP) — Thousands of pro-democracy protesters gathered in Thailand's capital again on Sunday,...

Italy closes gyms, shuts eateries early to fight COVID-19

ROME (AP) — Italy's leader imposed at least a month of new restrictions across the country on Sunday to...

Afghanistan claims killing an al-Qaida leader wanted by FBI

KABUL, Afghanistan (AP) — Afghanistan claimed Sunday it killed a top al-Qaida propagandist on an FBI...

Malaysia's king rejects PM's proposal to declare emergency

KUALA LUMPUR, Malaysia (AP) — Malaysia's king on Sunday rejected a proposal by embattled Prime Minister...

Vote like your life depends on it
Alex Veiga AP Real Estate Writer

LOS ANGELES (AP) -- Next to filing for bankruptcy protection, nothing wrecks your chances of qualifying for a home loan like a foreclosure.

And if you got out from under an oppressive mortgage through a short sale - when the bank agrees to accept less than what the homeowner owes - lenders can look upon you just as unfavorably.

It's a reality that the former owners of the more than 4 million homes lost to foreclosure in the six years since the housing bubble burst will have to confront if they want to own again. But the passage of time makes all the difference.

That's because mortgage-lending guidelines that most banks follow prohibit them from making loans to people with foreclosure or a short sale in their credit history, often for years. Never mind the hit that one's credit score takes.

Still, some of the homeowners who were foreclosed upon when the market first started to skid are now looking to buy and getting loans.

"They're probably going to pay a little higher interest rate, but with rates so low, a higher interest rate of 4 percent is not a big deal," said Rosa Herwick, a broker and owner of Century 21 JR Realty in Henderson, Nev.

So how likely are banks to approve your mortgage application if you have a real estate-related blemish on your record? And can you do anything to spring yourself from the mortgage penalty box?

It depends on several factors, but largely on whether you had a foreclosure or a short sale.

FORECLOSURE

Generally, borrowers who have a foreclosure in their credit history can expect to wait between two to seven years before a lender will even accept their loan application.

The waiting periods stem from guidelines most banks must follow in order to be able to sell their home loans. That's because potential purchasers, such as Fannie Mae and Freddie Mac, each have a different set of guidelines for the loans they will buy and criteria for whom they deem a qualified borrower.

The fact is, a person's credit score, employment history and other factors that make up one's creditworthiness will take a back seat to these resale guidelines.

If a buyer with a past foreclosure is seeking a government-backed mortgage, the waiting period can vary before they can qualify.

Take the Federal Housing Administration, which insures roughly 30 percent of new loans. Under its guidelines, former homeowners must wait three years from the date of their foreclosure before they can qualify for backing by the agency.

Compare the U.S. Department of Agriculture's housing program which requires three years, while the time penalty for a VA loan is two years. Fannie Mae and Freddie Mac, which own or guarantee about half of all mortgages, require the longest stretch: seven years after a foreclosure.

In some cases, the waiting periods for a foreclosure can be reduced.

Fannie Mae, for example, allows a three-year waiting period in the event the foreclosure was due to an extenuating circumstance. The company defines this as an event that was beyond the homeowners' control and resulted in a sudden reduction in income or catastrophic increase in financial obligations. Think job layoff, medical bills or divorce.

FHA may grant an exception to its waiting period in the event a wage-earner becomes seriously ill or dies. A divorce may qualify for an exception, but only in certain cases.

SHORT SALES

The roadblocks for having a short sale in your credit history can be less severe, and in some cases, waived altogether.

FHA requires borrowers who weren't paying their mortgage when they sold their house to wait three years before they can qualify for a home loan. That time penalty may be waived in certain cases, including long-term job loss.

There is no FHA time penalty for homeowners who made their house payments in the 12 months before their short sale.

The size of a down payment can also shorten the waiting period.

A down payment of 20 percent or more will cut Fannie Mae's time penalty on a borrower with a short sale down to two years from seven. Buyers who put down 10 percent can qualify after four years.

CREDIT SCORE

It's no longer just a waiting game for homeowners caught up in the earliest stages of the foreclosure crisis in 2007 and 2008.

There's still the impact a foreclosure or short sale has on one's credit score - still very much a factor in qualifying for a loan.

Like most credit blemishes, foreclosures and short sales will remain in your credit history for seven years.

As a general rule, the higher your FICO score, the more it will drop as a result of a bad debt, said Barry Paperno, consumer affairs manager for MyFICO.com, the consumer website for FICO.

FICO credit scores range from 300 to 850. In simulations, a foreclosure sent a FICO score of about 720 down to as low as 570 and took about seven years to recover fully, assuming everything else being equal.

Still, there are steps one can take to burnish one's tarnished credit rating.

- While in the foreclosure penalty box, make sure to pay all your bills on time.

- Get more credit. This may sound counterintuitive after a foreclosure, but beefing up your track record of good credit accounts can help boost one's credit score. A car loan or a credit card will do. But if you get a credit card, pay it off every month.

- Be patient. A foreclosure's drag on your credit score will decline over time.

- Dispute any mistakes on your credit report, which can lower your score.

- Don't close your oldest credit accounts. Your score gets a boost from older credit lines.

- Scale back your lifestyle and pocket the savings toward a future down payment.

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