Buying a house after Bankruptcy

[Finance_CB]

I can help you with a loan call me....

[Minnymouth]

Lost home in Chapter 7 (Oct 2004) due to "lender negligence" 7 years ago. Now in process of buying home back from trustee and land back from Bank.
They want "cold cash" - DUH...............
Thankfully a friend is a land investor and is going to bail me out and he is going to buy it back.
But I also need info on how I can finance my home so I can return his money too him.
Right out of BK, nobody wants to loan against equity even if the house is paid in full...................$60,000 in equity. They all say I have to wait 2 years.
Want to get my friends money back to him as soon as possible.
Nobody will loan $18,000 against $60,000 in equity.
My FICO score is still over 700 even after BK. Have had a A+ credit rating for 40 years till this past year.
Property should stand "good" for itself. Why not????
Any suggestions, folks?

Had

[lngwinded]

Hello! I've been reading some of the messages out there.I was told that i eather had to wait for two years or come up with 20% for the down payment if I didn't want to wait the two year period.Now my situation is that I am getting ready to file and I am concerned wheather or not by filing will affect me useing my VA certificate.I am under the impression that I will not have to put any money down when useing it.I ordered a copy of my credit report from the 3 agencies and got a score from TransUnion,it shows my score at 523 right now will filing chapter 7 affect that as well? Please help!

[MortgageBanker1]

With 30-40% down and the foreclosure out at least a year you should be able to get financing anytime. Right now you should be able to qualify although the rate would be in the high 7's to mid 8's. If you have any further questions shoot me an email.

Thanks,

[dck]

With a foreclosure in my past, (year and a half ago) and still in a chapter 13 when do you think a person would be able to get a mortgage? With 30-40% down?

[Bob_Dole]

A few tips that will aid you in getting a mortgaage after bankruptcy

First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help.
Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards. Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage.

[MortgageBanker1]

Daney, the lenders go off the discharge date. There are lenders that will do financing 1 day out of bankruptcy as long as you have a 580 score or better. Yes you will be able to get a decent home loan after a bk especially with those scores. The big thing is going to be rebuilding credit and rent checks if you dont already own a home. If you have any further questions let me know. I will be glad to help. Hope all is well.

[daneyb]

Wow, this is my first time on this board, lots of great information so far!

I have many questions !

My husband and I officially filed for Ch 7 in April, but it was discharged in July, so, which date do lenders go by, file date or discharge date?

Anywhoo......I just ran both me and my husbands credit report. His FICO Score is 610, mine is 570, there are 2 mistakes on mine showing I still owe balances ($6K), so I have disputed that with the credit reporting agency.

Will we be able to get a decent home loan with both of us having 620-650 FICO's? We were looking to buy a house at the end of this year. We have NO debt, I am currently shopping around for a secured credit card for both of us to build up our credit.

I'm amazed that my husbands score is so high, being as before we filed it was barely 530!

Any other suggestions??

Thanks so much!
Daney

[GCPD911]

THANK YOU ONCE AGAIN TODD

[HRx]

There are tons of used car dealerships that specialize in subprime loans, that don't report your account and your payments to the CRA's. Just a note to others, if you decide to use one of those your job is your credit type of dealerships, ask them up front whether or not they report your account and your payment history to all three CRA's. They should also be able to provide you an answer in writing.

But to answer your question, a letter from the dealership isn't going to boost your credit score. But it may help towards getting you a mortgage. Also look into getting a copy of one years worth checks that you used as payment for your car note. This payment history could also work in your favor. Beside this and other forms of ontime payment histories, all you can do is continue to use and make prompt payments towards the credit cards you currently have - and allow time to take its course at increasing your credit score.

Another thing you want to consider doing if you already haven't is getting a copy of your credit report from all three CRA's and removing any descrepancies that may be on them. Doing this will also help at increasing your credit score(s) too. Aside from everything I've wrote, sit down with a few experienced mortgage specialists, to find out what you actually need to have done to qualify for a mortgage with thier organization or from thier end clients.

Good Luck!

[GCPD911]

I Purchase A Veh In Feb Last Year With The Understanding That It Was To Be Reported To My Credit Now Im Trying To Buy A Home And Its Not Listed I Called The Car Dealer And They Said It Cost To Much Money To Buy The Software Now And They Will Give Me A Letter If Needed ...i Have Two Small Credit Cards And That Is It ...how Can I Get My Scores To Go Higher? And Will That Letter Help

[cscooper]

True. If you can keep a 580 score through your bankruptcy, or build up to that after the BK, you can qualify for 100% financing very quickly, if not immediately. If your scores are lower, you'll need a downpayment. As a national loan officer, I work hard to help you through all the options available to you and explain in human language what might be in your best interest, given your needs and circumstances.

Also, some tips to keep in mind. If you are facing, but have not yet filed bankruptcy:

1. Keep some open lines of credit, or loans THROUGH your BK. You don't have to include EVERY account in your BK. This will help you keep a better score, so that rebuilding credit won't be as difficult. For example, you have a car. It's the only account you've always paid on time. DON'T include it in your BK. Keep the car. Continue your excellent track record and your scores will stay higher through the BK. Applying for credit or a home loan will be much easier then.

2. You've heard it a thousand times. Get a secured credit card. Preferably one that reports to ALL 3 agencies and one that reports as UNSECURED. Use it! Pay it off every month ON TIME, EVERY TIME. I'm currently researching some of the best cards that meet this criteria. I'll have it on my website soon.

There are a few more things you could/should do, but these two will help you get back up after a BK.

I am a lender as well as a mortgage broker. I have every program in the book available for getting financing for bad credit situations. I shop several other nationlenders for you with just ONE credit pull. This means you don't have to shop and destroy your credit further by having everyone in the world pull your credit. Despite popular misconception, almost every credit report I look at says "score was adversely affected by credit inquiries."

Best of luck!

[MortgageBanker1]

Robivi, Sara and anybody looking for info on refinancing or buying a home after bankruptcy. I am a mortgage banker located in NY and do financing for homeowners in over 38 states nationwide. I have closed many loans with people after bks including my own refinances. With a 600 score in the sub prime market your are looked at as A+ borrower, and with as much equity in your home as you say you anybank should be fighting for that loan and getting you the best interest rate around. I recently closed a loan with a borrower just out of bankruptcy with a 580 score and got them 7.5% 30 year fixed which dropped there interest 1.5% from what they originally had. I deal with over 100 diffrent banks and am myself a banker so if you need anymore information on this or want a free credit check and report with consultation on your next move to securing a financially sound future contact me at:

Mike Armella
Senior Mortgage Banker


Good luck to all contact me anytime i am available 24/7.

[robivi3]

But who has actually done it with a score of around 600. That is the person i would like to hear from.

[Laura]

Excellent Home Buying Program

Sara,

I worked for a mortgage company for 5 years which specialized in servicing first-time homebuyer loans which banks all over the country originated through state housing finance authority programs. Every state in the U.S. has a state housing finance authority which provides funding for mortgage programs for first-time homebuyers (among other programs). These programs have below-market interest rates, low downpayment requirements (some offer substantial downpayment assistance) and the credit standards are not too harsh. You can obtain an FHA loan through one of these programs two years after your bankruptcy is discharged (as long as you've re-established your credit). Go to http://www.ncsha.org/section.cfm/4/39 for a listing of state housing finance agencies.

Hope this helps!

Laura