buying a house during bk

[okiemom2008]

Is it possible to buy a house during bk? If so, who would loan you the money and what type of downpayment would you need?

[AngelinaCatHub]

WOW OKEE, if we all knew this, we would not be in bk. I guess it is possible if the owner financed it and was bailing out. However most want some money up front. I would. You have introduced the $64 dollar question. 'Hub

[okiemom2008]

Well, I just wondered because in the sticky's it says if you know where to look, it is possible. We want to buy badly even if it means paying more interest. We are tired of renting and want our own place!

[HHM]

In this climate, fat chance. (sorry to say). With a chapter 7 BK, no. In a chapter 13, it's "possible" but unlikely. Do you even have the money available; for FHA, you need a minimum of 3.5% down plus the MIP (Mortgage Insurance Premium).

About all you can hope for is owner financing, which is practically non-existent.

[Logan]

Well, I just wondered because in the sticky's it says if you know where to look, it is possible. We want to buy badly even if it means paying more interest. We are tired of renting and want our own place!

Would you lend money to someone who is in BK? A few years ago some people would say yes but today everyone is saying NO. That's one reason Circuit City is going out of business.

Logan

[fslady]

It is possible!

I was able to purchase my townhouse last October - thankfully before the banking mess really hit. I'd rented the townhouse for several years, my landlord wanted to sell and offered it to me at a very good price for the area - also no agents involved. I got financing through a nationally known bank, competitive rates, and 30 year fixed. My lawyer worked with me to present a new budget to the Trustee that she accepted.
The bank representative said that 2 key things were that I was in a Ch 13, not a Ch 7 and that I had 20 on time payments on my record.
I am very grateful to my former landlord and the bank!

[okiemom2008]

Well it seems like since the car business wants you to finance as soon as you file bk, the mortgage holders would also. guess not

[Minnymouth]

With the housing market in the shape that its in right now you would think that if someone came along, with cash in hand (downpayment), good credit scores, and no other debts, they would be apt to sell them another home even though that had filed BK 2 years ago.......
A year ago you could have bought it, now you can't because of how things are in the market and the banks are running scared.
They may make it even harder now for people who filed BK to purchase another home in the future..... lets hope not....

[dogbone33]

Well it seems like since the car business wants you to finance as soon as you file bk, the mortgage holders would also. guess not

Car lenders want you to finance but the truth is they can't get you financed... So I am assuming since we can't get a car loan we couldn't get a home loan. But we found a brand new house and we are doing a land contract on.. Lucky us!