Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Moving Forward Post-Ch. 7 BK... Planning Stages of First Time Home Buying

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Moving Forward Post-Ch. 7 BK... Planning Stages of First Time Home Buying

    My no-asset Ch. 7 BK was d/c in May 2013. I filed on my own and would like to eventually make a home purchase on my own - maybe later this year.

    I will soon be employed for 12 months with decent income in a very stable industry - and I love my job.

    I may have waited too long before applying for a credit card for fear of rejection. I finally applied for a Discover card about 4 months ago and was approved for an $800 credit line. I'm making regular purchases and paying off the balance each month. According to my Discover statement, my FICO is 640.

    I currently have about $3,000 in my house fund and have about $6,800 in student loan debt. I also have about $60,000 across multiple retirement accounts including $10,000 I can take out from an IRA to fund a down-payment for a home purchase.

    I love the area I'm in and really hope to stay. I truly believe it's time for a home purchase. Husband is also on board, but due to his own situation, cannot be involved in a home purchase.

    What key things should I be doing if I'm hoping to make a purchase later this year? Should I focus on paying off my student loans? I'm paid through August of this year trying to pay it down with extra money I have. OR should I be saving my extra $$ building my house fund savings account? Which is more important? What else should I be doing at this time?

    Thank you!
    PPP

  • #2
    Well, at the two year mark, your middle FICO score should be over 670, which mine certainly was at that point after my Chapter 7 discharge. That two year mark is really important to the score and you should see a good jump. If you don't see a big jump -- by big I mean about 30-40 points -- then you may have utilization issues with that new card. Try not to "revolve" more than 10%, and definitely revolve about 10%. I would also get another card (maybe use Capitol One since they can do a soft inquiry) and try not to use that card. Make sure your cards are on AUTOMATIC PAYMENT. You don't want to accidentally miss not even a single payment. You need a perfect history for 24 months.

    Also, do not apply for any other credit until you're ready to start searching for the loan. The inquiries could shave 2 even 5 points off your score and you really want it above 680 if you can. I only say 680 because that's "good" credit. You can certainly obtain an FHA loan easily at 620 with only the 3.5% down.

    Other than that, keep saving!
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


    • #3
      Originally posted by justbroke View Post
      Well, at the two year mark, your middle FICO score should be over 670.
      That's if he was rebuilding these two years. He said he didn't apply for a credit card until a couple months ago. I doubt the middle FICO is going to be 670.


      OP, I wouldn't apply for any credit for 6 months before I was planning to buy a house. If you think it will be at least 6 months away, I'd consider opening two more credit cards for a total of 3. Try the CapOne Prequalifier.
      Chapter 7, above median, no asset. Discharged with no UST involvement.

      Comment


      • #4
        Save, Save, Save as much cash as you can, you will need it for down payment and closing costs as well. Also, you want to have an emergency fund going as you do not want to be "house poor". Especially since you will be 100% responsible for all the repairs, appliances, yard, maintenance etc., there is nothing worse than getting that house you always wanted then living paycheck to paycheck because of the costs associated with home ownership. You will also need to make sure you have cash in the bank in case you lose you job or have medical issues that would put you on disability etc..

        Live well below your means, buy a much cheaper house than the bank says you can afford if you do not have a large down payment (but have at least 20% down so you are not paying PMI, total waste of money). There is a lot to think about so keep it real and practical, another business decision so keep the emotion out it. Good Luck!

        Comment


        • #5
          I applied for a a secured card with capital one. I just filed chapter 7 in march. Lawyer said to get a secured card first then evenually try for a regular card after 1 year post discharge. I had to pay 99 deposit and got a 200 limit. I can already see a positive increase in my credit score. I would like to get into a house within the next two years

          Comment


          • #6
            We just closed on a new construction home about a week and a half ago. We are almost 3 years post BK13 and foreclosure.

            I would recommend getting a copy of your credit reports and making sure that everything is reporting correctly. I would also get a Credit Karma account or similar account just so you can monitor any credit requests, etc. The scores on there are not your mortgage scores but they are, IMO, a good way to make sure there are no surprises.

            Also, save money. It amazes me how many people want to buy a house with no savings and think that as long as the sellers cover their closing costs they will be ok. There are lots of costs that most people don't consider. For most people moving isn't free and there may even be deposits required for establishing utilities if you don't already have them set up.

            We did a VA loan and didn't have to put any money down, but we had to cover $17k in closing costs. When we first applied they wanted to see that we had at least closing costs in our savings account. I think every lender is different, but that is what ours looked for.

            Good luck.

            Comment


            • #7
              Got it! Thank you all, for your input. We are definitely saving, saving, saving! :-)

              Comment


              • #8
                UPDATE!

                Turns out my mid-credit score was 682! Well above the minimum required by FHA.

                I managed to qualify for a mortgage all on my own without my husband's excellent credit/income and we closed on our new house last month. :-)

                Two years and 4 months out of BK-7, I once again, have good credit.

                Definitely making smarter financial decisions as I continue to move forward.

                Thank you all for your insight and advice.

                PPP

                ETA: And the interest rate was market 3.875%. No penalty for my credit history. :-) Gotta love 2nd chances!!

                Comment

                Unconfigured Ad Widget

                Collapse
                Working...
                X