Options for the future

[monkatom]

[Trixie007]

Well, even though you would be 2 years out from your BK, you would only be a year or so out from the foreclosure, so I think any financing you would get would not be at a great interest rate even with a 30% down payment. If you can save 95k in a year (wow!), why not rent cheap for 3 years and have 285k (plus interest if you invest) and buy then? How cool would that be, to just pay cash for a house. Ok, I'm dreaming now! Best of luck to you.

[monkatom]

I was under the imnpression the foreclosure would not show as the mortgage was IIB?

We could save since we would live rent free with in laws. Not sure I could do taht for more than 1 year.

[Trixie007]

Sorry, I misunderstood that the house is IIB. I believe that the foreclosure still shows up, even when included, but at least the timing would be the same. I think I've read that it's 3-4 years before you can get the really good mortgages, but of course there are other lenders who will give loans at higher interest rates earlier than that. IMHO, even if you are paying rent but keep it reasonable, it still looks like you have substantial income to be able to save to buy a house later. I guess you just have to weigh out your options, rent longer and get a more favorable mortgage, or buy sooner and pay a higher interest rate. Still, it looks like you'll be in good shape either way as you obviously have good resources!

[BassBoy]

When surrenduring a home in BK, the event is "looked" at as one. The debt was discharged, and that's all that matters.

With financing a home.........the general guildline I've been told is 2 years post BK if the foreclosure was not before the BK and 3 years if the foreclosure was before the BK. Of course, the longer one waits, the better.

IMO monkatom, with the kind of income you have, and depending on your age, I would look to have your FINAL home......something nice that doesn't need too much except your special touches to make it yours.

A note about rehabbing a home.......USE EXTREME CAUTION! I looked a few foreclosures in my area a few months ago, and Dear Lord, what some people will do to a home when they're losing it is striking. You also don't know if the home has been broken into and damaged beyond reasonable repair......I've seen that twice. Additionally, with a home that has been closed up for some time may have developed mold and wood rot, and that's not always noticeable upon inspection, especially stud walls and sill plates. And don't let the "Flip This House" show give you the wrong impression. I believe that show, and others, can be a little misleading at times. On the other hand, if you know what your doing and you can easily take on small remodeling projects and if you find the right one, then yes, go for it.

Good luck.

[monkatom]

Thanks for all the advice. I am not sure why people do this to foreclosed homes. Its strange to us as we love this house but over 4K a month for mortgage is just too much. We obviously are not doing any repairs at the same time we are still keeping it clean and treating as we did prior to our decesion to let it go. i do agree foreclosures could be tricky and I have read at times to get a good foreclosed home that has no problems the price difference is usually not all that different.

One question what about short sales? How different are they from foreclosed homes?