Here's My Situation

Wanted to get some opinions on my situation. My Chapter 7 bk was discharged Jan. 2005. I was forced into BK after having a bad accident and losing my job both in a two month period after which point I was left with major medical bills unable to work from the accident, and unable to pay for insurance for therapy, doctors, etc. after losing my job...Anyways, my wife and I currently rent a home from her parent's which we don't wish to buy from them (obvious "under the thumb" inlaw reasons among others).

We wish to buy a house, we have almost no debt besides a no interest credit card we are paying on that will be paid off in the next few months. I have taken all steps to try and raise our credit scores and clean up credit report, which was unbelievably innacurate after my bk. Since Jan 05 I have never been late on a payment for anything. Our income is $83,000/year. My current scores from Myfico.com are 682, 663, 649. My wife's are 690, 673, 675. We are currently disputing an incorrect collection on two of my wife's reports. She got all kinds of credit cards in college and screwed up her credit pretty good at one time.

So the inlaws want to sell the house this spring and we really want to get into a home ASAP. We have $13,000 now for downpayment and are saving about $2100 per month. Any ideas on where we stand? Sorry so long, thanks in advance.

How early next spring the folks decide to start marketing the house could be the big factor in when you need to move to buy a house.

At the 2 year point, post BK, you'd qualify for financing other than subprime. In your case, you'll hit that point in January.

I'd suggest keep saving as you have, sit back and enjoy the Holiday season, and get to your 2 year anniversary date. Continue working to clean up errors on your credit reports during this time as well.

Then late January, early February, find a local mortgage Broker who works with a variety of Lenders. Ask friends and coworkers who they financed with for recommendations. Brokers can screen your loan situation down to a few Lenders they know and see who will give you the best deal.

Wanted to get some opinions on my situation. My Chapter 7 bk was discharged Jan. 2005. I was forced into BK after having a bad accident and losing my job both in a two month period after which point I was left with major medical bills unable to work from the accident, and unable to pay for insurance for therapy, doctors, etc. after losing my job...Anyways, my wife and I currently rent a home from her parent's which we don't wish to buy from them (obvious "under the thumb" inlaw reasons among others).

We wish to buy a house, we have almost no debt besides a no interest credit card we are paying on that will be paid off in the next few months. I have taken all steps to try and raise our credit scores and clean up credit report, which was unbelievably innacurate after my bk. Since Jan 05 I have never been late on a payment for anything. Our income is $83,000/year. My current scores from Myfico.com are 682, 663, 649. My wife's are 690, 673, 675. We are currently disputing an incorrect collection on two of my wife's reports. She got all kinds of credit cards in college and screwed up her credit pretty good at one time.

So the inlaws want to sell the house this spring and we really want to get into a home ASAP. We have $13,000 now for downpayment and are saving about $2100 per month. Any ideas on where we stand? Sorry so long, thanks in advance.

You may have a chance for an FHA loan, You can qualify for an FHA loan 1 year out if there are circumstances that are out of your control that lead to the BK. It is tough to get an FHA loan done but you may have a chance, either way you can get financing with zero down, or you could put 5% down. What are you comfortable with as far as a mortgage payment?

Thanks for the advice guys. My wife and I have been talking to a realtor, he put us in touch with a bank he does a lot of business with on Friday. I just got the call about a half hour ago, we are approved for $250K at prime rate. Great news! After all the heartache and stress we've been through, all the hardwork we've done to clean up credit has paid off! Thanks again for the responses.