Hoping voices of experience can give me a bit of guidance

[mystia97]

Hello all,

The facts:
filed for Chapter 7 September '05. Finalized in Jan. '06. Mortgage included, did not reaffirm, sold at Sheriff's sale in Nov '06, state of Indiana.

I now live and rent in the state of Ohio. My husband and I are both working on our credit, I've been fixing our reports, we both have credit cards, one of mine's been open for over a year. In addition I have a student loan which reports. We also have a car loan but due to Honda's slow moving and my ignorance, a reaffirmation agreement was not signed before the bankruptcy was finalized and therefore does not report. I'm not happy about this. I called Honda many times and did not know the reaffirmation had to be completed before finalizing the bankruptcy.

Anyhoo, my landlords are military and now live in the D.C. area and would rather have sold the house than rent it but they are working with us until we are in the position to buy it. I have plans to go talk to a lender to get the ball moving on what we officially need to do.

What I would like to do is plan on purchasing in 1 year, with about 10k saved up for a down payment/closing costs on this home which zillow.com values at $116k. With that 10k, I would also like to buy down a couple of points. Does it seem like we might be able to get a comparable rate to what somebody with no bankruptcy on their record would get? And also, am I correct in in thinking that in one year the lender will look at the bankruptcy and foreclosure as one event that occured when the bankruptcy was finalized in Jan. '06, which will be 2 years in the past, at that point?


Any advice our voices of experience would be greatly welcomed!

[BassBoy]

Good planning here

Well mystia, you're thinking is headed in the right direction. Buying a home after BK, the rule of thumb is 2 to 3 years to be a prime rate borrower. I believe that time is the best healer in this case. The longer you wait, the better off you'll be.

That aside, having $10K will definitely work in your favor. You're about 10% down (based on the $116K you mentioned) and that's better than nothing down at all. As far as buying points, that's where you'll have to do the math. Will the interest rate drop be the less interest paid over the term, or, will having the lower principle balance be less interest paid over the term of the loan? IMO, I would put the $10K house and the lower principle balance becasue you may PMI and that's costly.

[MTG_BANKER_OH]

Hello all,

The facts:
filed for Chapter 7 September '05. Finalized in Jan. '06. Mortgage included, did not reaffirm, sold at Sheriff's sale in Nov '06, state of Indiana.

I now live and rent in the state of Ohio. My husband and I are both working on our credit, I've been fixing our reports, we both have credit cards, one of mine's been open for over a year. In addition I have a student loan which reports. We also have a car loan but due to Honda's slow moving and my ignorance, a reaffirmation agreement was not signed before the bankruptcy was finalized and therefore does not report. I'm not happy about this. I called Honda many times and did not know the reaffirmation had to be completed before finalizing the bankruptcy.

Anyhoo, my landlords are military and now live in the D.C. area and would rather have sold the house than rent it but they are working with us until we are in the position to buy it. I have plans to go talk to a lender to get the ball moving on what we officially need to do.

What I would like to do is plan on purchasing in 1 year, with about 10k saved up for a down payment/closing costs on this home which zillow.com values at $116k. With that 10k, I would also like to buy down a couple of points. Does it seem like we might be able to get a comparable rate to what somebody with no bankruptcy on their record would get? And also, am I correct in in thinking that in one year the lender will look at the bankruptcy and foreclosure as one event that occured when the bankruptcy was finalized in Jan. '06, which will be 2 years in the past, at that point?


Any advice our voices of experience would be greatly welcomed!

You are doing a good job planning for the future. you should be ok in another year to do a loan at a good interest rate. You will need to decide whether you want to put the money down or just have it as a reserve the 10k will probably save you about $80 a month in your payment. You should qualify for a loan with reduced mortgage insurance so mortgage insurance should not be that much of a concern. The loan you will be looking at is a mycommunity loan.

[Mortgage Guru]

I believe it will be two issues the Bk and more importantly the foreclosure. they don't mind as much when others are taken out but if the Bk includes a foreclosure they push it out further. I would have to check the guidelines.

Hello all,

The facts:
filed for Chapter 7 September '05. Finalized in Jan. '06. Mortgage included, did not reaffirm, sold at Sheriff's sale in Nov '06, state of Indiana.

I now live and rent in the state of Ohio. My husband and I are both working on our credit, I've been fixing our reports, we both have credit cards, one of mine's been open for over a year. In addition I have a student loan which reports. We also have a car loan but due to Honda's slow moving and my ignorance, a reaffirmation agreement was not signed before the bankruptcy was finalized and therefore does not report. I'm not happy about this. I called Honda many times and did not know the reaffirmation had to be completed before finalizing the bankruptcy.

Anyhoo, my landlords are military and now live in the D.C. area and would rather have sold the house than rent it but they are working with us until we are in the position to buy it. I have plans to go talk to a lender to get the ball moving on what we officially need to do.

What I would like to do is plan on purchasing in 1 year, with about 10k saved up for a down payment/closing costs on this home which zillow.com values at $116k. With that 10k, I would also like to buy down a couple of points. Does it seem like we might be able to get a comparable rate to what somebody with no bankruptcy on their record would get? And also, am I correct in in thinking that in one year the lender will look at the bankruptcy and foreclosure as one event that occured when the bankruptcy was finalized in Jan. '06, which will be 2 years in the past, at that point?


Any advice our voices of experience would be greatly welcomed!

[lostinmich]

Why wouldn't they be considered one by the lenders? It's quite obvious that the foreclosure was based on the fact that they gave the home back in the bankruptcy.

[MTG_BANKER_OH]

Hello all,

The facts:
filed for Chapter 7 September '05. Finalized in Jan. '06. Mortgage included, did not reaffirm, sold at Sheriff's sale in Nov '06, state of Indiana.

I now live and rent in the state of Ohio. My husband and I are both working on our credit, I've been fixing our reports, we both have credit cards, one of mine's been open for over a year. In addition I have a student loan which reports. We also have a car loan but due to Honda's slow moving and my ignorance, a reaffirmation agreement was not signed before the bankruptcy was finalized and therefore does not report. I'm not happy about this. I called Honda many times and did not know the reaffirmation had to be completed before finalizing the bankruptcy.

Anyhoo, my landlords are military and now live in the D.C. area and would rather have sold the house than rent it but they are working with us until we are in the position to buy it. I have plans to go talk to a lender to get the ball moving on what we officially need to do.

What I would like to do is plan on purchasing in 1 year, with about 10k saved up for a down payment/closing costs on this home which zillow.com values at $116k. With that 10k, I would also like to buy down a couple of points. Does it seem like we might be able to get a comparable rate to what somebody with no bankruptcy on their record would get? And also, am I correct in in thinking that in one year the lender will look at the bankruptcy and foreclosure as one event that occured when the bankruptcy was finalized in Jan. '06, which will be 2 years in the past, at that point?


Any advice our voices of experience would be greatly welcomed!

If your mortgage is reporting on your credit report as included in BK at the time of when you filed the BK you shoudl be ok to get a my community loan 2 years out. They count the foreclosure and BK as one instance and after 2 years you are good as long as you have re established credit and have decent scores around 620, but optimally 620 or higher. The best thing to do is make sure is is reporting correctly on your credit report.