What If....

[tallberry]

we have pretty high credit scores and we were just discharged 7/1/08, could we possibly get a Mortgage in 6-8 months from now? We are currently renting and our lease runs out in January 09, so we would like to buy while the FL market is still a buyers market. Our scores are really good for being just discharged (average around 700), we only have about $5,000 saved but I have another $5,000 invested that I could use and we should be able to save another $5,000 or so before January. So with $15,000 to $20,000 to put down, 700 credit score and we make around $100,000 combined...is there a chance we could get a decent mortgage in about 7 months? One more thing...the only debt we have is my car, $491mo lease for 2 years. Any thoughts please!

[Flamingo]

No one can say for sure. All you can do is try if you want. The BK will probably hurt you more than you know even with your credit scores. Lending institutions right now are extremely careful and picky about who they lend to and that may not change for a while. When one files BK, all the debt and problems go away but there are a whole new set of problems and issues to deal with and that is obtaining loans, credit or a mortgage during the next 7 to 10 years.

Best of luck!

[tallberry]

Thanks Flamingo...I just wanted to get my feelers out to see what choices we may have. We may be able to extend our lease but they really want to sell this house so we will need to move and I would rather buy than rent, if at all possible.

[fltoo]

Tall,

It used to be and prob still is 2/3 years for bk and or foreclosure regardless of credit score. Who knows the ramifications of the present mortgage crisis.

I think the FL market still has not tanked, so you will have plenty of options.
Most probably, the single family market will recover before the condo market here.
Last time the market flattened was late 80's and took 8 years to rebound.

We are in a bear market, mortgage money is tight, rates will rise(the bond market is a good indicator for interest rates).

So many unknowns right now.

[epiphany]

We are in a bear market

Can somebody please explain to me the difference between bulls and bears as I hear it all the time and have no idea what it means?

Thanks,
ep

[Flamingo]

Can somebody please explain to me the difference between bulls and bears as I hear it all the time and have no idea what it means?

Thanks,
ep

A bear market is when the stock market falls for a prolonged period of time, usually by twenty percent or more. It is the opposite of a bull market. It's the percentage that really makes things happen - 20% off the high or the low. As to the term "Bear" or "Bull," those are something mythical descriptions as to each animal that have come to describe those markets. There is lots of searching stuff out there on both markets.

[halloweendmb1]

rumor has it back in the 19th Century the same people who sold bear skins adopted the philosophy of a "bear market" i.e. 20% declines off the high means invest in fixed income and wait for the bottom. I've never heard anything interesting about why it is called a bull market

[epiphany]

Ah, thanks Flamingo...I understand sorta the term bull vs bear now.

And that's very interesting Halloween. I love hearing the orgins of words and phrases.

ep

[fltoo]

If you ever get to NYC, right off Battery Park, there is a statue of a big old bull.

I love the history also. It is called Wall St. because the Dutch settlers built a big wall around the settlement. There are other guesses as to why it is called Wall St. but the Dutch settlement wall seems to be the most accepted.

The city is a grid with Broadway slicing across it diagonally. Wall St. does not follow the grid pattern due to this wall. The little triangles that Broadway creates when it slices through the grid are mostly little parks.

Son is a trader and when I visit, first thing I do is head for the nearest deli! Pastrami and cheesecake. MMMMM

[busymom3]

Tall, keep us updated if you are able to get a loan.

[tallberry]

thanks busymom3, this OP kind of took on a different subject than where I started it...I was hoping for more details on other experiences of my same situation.

[Stilltheone]

We spoke with a lender about getting another mortgage. We want to build in 2 years and he said that was the minimum time we had to wait...2 years. He said it's "written" as 4 years, but many lenders will look at you if you're 2 years out from discharge.

I would at least talk to a few lenders, see what their policies are. I wouldn't have them check your credit, but just ask if they have a "waiting period" for bankruptcies.

Good luck!

[tallberry]

Thanks to all who posted. My husband and I have talked it over and have decided that renting for another year or two will be in our best interest. We feel like the economy the way it is, it is too risky for us to jump into a 30 year committment so soon after our BK. This way we can save more money and see where the economy goes from there.