FHA and VA loans are still assumable mortgages, check debt’s shelf life

Q: Given the recent, less-than-desirable credit situation, are there any assumable mortgages -- with or without bank approval -- still available in the marketplace? -- J.F.

A: All Federal Housing Administration and Veterans Affairs loans are assumable.

They can be taken over by a buyer along with the property, except with loans more than 20 years old.

Then the new owner must prove financial qualification to carry the payments.

In some circumstances, the original borrower may retain liability for the debt.

Lie or no lie

Q: Eleven years ago I filed for bankruptcy and my condo was foreclosed upon.

Since that time I have rehabilitated my credit (scores well over 700 at this time) and remain as close to debt-free as possible.

I bought a new car last year and the credit application asked if I had ever filed bankruptcy.

I truthfully answered that I had, but more than 10 years previously.

My question is, am I legally (or morally or ethically) obligated to disclose a past bankruptcy or foreclosure that occurred so long ago they no longer appear on my credit report or public records? -- D.L.D., via e-mail

A: I'm certainly not going to stand up here in public and tell you it's okay to lie.

But your question is an intriguing one, so let's see what other readers may have to say.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.