I got mortgage, but BK filling next month

[Blue_Ray]

I am worried about something.

Right now we own a home, financed w/ a bank @ 5.5% APR / 30 year fixed.

~ Now we are; next month filing for BK / chpt7. Will the chpt7 effect my mortgage apr rate?


---- Also, we're considering moving next year to another state, would I be dumb to sale my home I live in and move on and even attempt to try to purchase another home?? Now I am sure even if I was to put 20% down my APR rate would be really high, huh??
----- Also if I was to rent, is it hard to rent property due to a BK??

Thanks for any input.

Ray

[Boscoe]

That is an excellent rate, fixed loan, sounds outstanding. The bk WILL affect your credit quite a bit. That being said, it is NOT forever. However, if you don't have to move, then I would not do so. You may have problems renting, if the landlord runs a credit check (which many do). Also, you won't likely get a decent mortgage for at least 2 years and maybe longer.

And to answer your first question - no, they can't change the rate on you. I have never heard of Universal Default applying to mortgage loans or home equity lines. Someone correct me if I am wrong.

[B12]

You are right on mortgages Boscoe, not sure about HELOC loans or lines. Will have to look that one up.

[SinkingFast]

BK shouldn't affect a fixed rate mortgage. Your rate should stay the same.

Just to be on the safe side,.......... You might wanna pull out your Loan Docs and read thru them.

As far as buying post BK,........... Several Pros have posted here that you'll get your best financing by......... Cleaning up your Credit Reports,......... Establishing new Credit,........ Paying on time,........ And wait about 2 years.

Renting post BK can be tricky. Bigger apt complexes tend to run Credit. Smaller Landlords tend not to. Some will make exceptions if you explain in advance. You've just gotta feel your way along. Hopefully, you'll be lead to the right situation for you.

[newlife2007]

A BK will Not effect your fixed mortgage rate but it will make your HELOC increase if it is not fixed !!
There is a maximum amount that they can increase it to and it should be in your paperwork when the loan was taken out ... My Guess around 15%.

[Blue_Ray]

Thanks all! For sure the rate is a fixed rate

I may just keep it and if we move, I am sure I can call my parents to help co-sign on an apartment. I am stable on my secure, but the unsecure debt what really fu^cked me bad after excellent relationship with them. Since I have not been paying the unsecure debt been crying like little babies wanting to make a deal fug them all!!