341 and we get this so-called "diligent" trustee

[Resigned2BK]

Update as of May 14:

Buyers that scheduled the inspection cancelled their inspection last Thursday and requested a 15 minute walk through instead with the additional stipulation that we not be there. So we weren't. Nothing whatsoever further from them. No reschedule to inspect, no indication of things going to pending, actually, we're back to being active status again. Huh, go figure. We overheard conversation from a realtor showing her clients the following day (not the formerly mentioned dingbats) and we have a very strong suspicion that people just don't even understand the process AT ALL. Like as in these people have no clue (and apparently their ill informed realtors are equally clueless) that not only will they have to have that down payment to satisfy their mortgaging bank, they'll have to pay these trustee fees and carve outs etc with cash, not financed into the deal. We even had a phone message saying these last people were very very interested yet we overheard the guy saying they only have financing approval to get about $180K home price max. While previous dingbats are still in the picture with their low ball $170K offer, people are thinking that's actually what it was lowered to, so it'll be interested to see what happens when an if the dingbats drop out entirely and especially if there's no back up buyer waiting in the wings to pounce.

We are also having one heck of a heart attack inducing headache with figuring out if we can rent anywhere. Most of these applications even for the lower income restrictions "affordable program" housing all seem to say you can't have an open bankruptcy (yet they don't care a lick for foreclosure, go figure). I found one that said as part of the denials "Any open (non-discharged) bankruptcies." To me it's classic misconception thinking that discharge and closed mean the same thing. So.... the question is, how does it show on the credit report when you are between discharged and closed status??? We won't be able to check for another couple weeks as we were discharged on the 24th and want to wait for the credit reporting to be updated enough to show it. Anyway, just curious. We may check the credit report for one of us, then based on what we see (like as in not a glaring phrase of "discharged and open" or such effect) go ahead and apply just saying we are discharged and see if we pass their credit reporting or not. It's a waste of money we can ill afford, but if we can get housing, sure beats bunking with the inlaws for a month waiting for the trustee to get off his duff and close the case officially already.

Fun fun fun.

[ValleYum]

Hiya R2BK:

Property managers just want to see "discharged". All properties I worked with here in SWW were the same in that respect. I checked hubby's credit just a few days after d/c and it showed the discharged BK on the report in the public records section there was no difference once we were closed that I was able to see on our reports.

[Resigned2BK]

Hiya R2BK:

Property managers just want to see "discharged". All properties I worked with here in SWW were the same in that respect. I checked hubby's credit just a few days after d/c and it showed the discharged BK on the report in the public records section there was no difference once we were closed that I was able to see on our reports.

That's very promising to hear. I was wondering how these things appear on the credit report, so that's good that there's no difference between the look of discharged/open and discharged/closed. I was about to get into a fight the other day with a leasing assistant because she was getting kind of snippy about how she's never worked anywhere where an open bankruptcy was ok. Even after I'm explaining that we're discharged. I know I was taking it out on someone who is clueless, it just makes me mad.

[justbroke]

The few that I spoke with, including Picerne (a national leasing/management/owner company), wanted 2 years from discharge. However, strong credit and a strong employment history with no evictions or bad rental history, allowed me to be approved on a rental.

It's always good to be up front.

[keepsmiling]

The few that I spoke with, including Picerne (a national leasing/management/owner company), wanted 2 years from discharge. However, strong credit and a strong employment history with no evictions or bad rental history, allowed me to be approved on a rental.

It's always good to be up front.

......and therein lies another problem with this carveout carp.
Sure, if you can live rent free post discharge for a few years, rebuilding credit, that's great. But if you are only just discharged and forced to leave, that allows no time for rebuilding . And possibly not for saving up enough for a substantial deposit either.

Crossing fingers for you R2BK~

[Resigned2BK]

We're fine for deposits. We actually were hoping we could just pay like 3-6 months in full if that could help them sort of look the other way when it comes to the bad credit and open bankruptcy, but no dice.

Oh, and as of this afternoon, we are in pending status all over again. No official word from the listing agent's office about that, DH has been compulsively checking our listing through MLS and Zillow multiple times a day, otherwise we wouldn't even know still.

[tobee43]

as jb points out, it's the discharge, as an asset case can be open for years and actually it's only the particular situation in question that is not discharged and all other debts are.

if i were in this situation to have to seek a rental, i would try to do it privately and offer a large deposit or 6 months in advance rent. many times private landlords are looking for the rents and really not so much the situation as to why you need to rent. again, as most of them do credit checks i would be right up front.

here in florida it's not that much of a problem as there are so many vacate places and SO many people that filed, i know in our HOA money talks and a bird in the hand.

also, try some local realtors in your area. you might be surprised to know they may have some heads up on rentals. i know this will all work out. you have been through so much!!! i don't wish bad on anyone, but this trustee you have is just beyond beyond!

[ValleYum]

I know that here in SW Washington, different rental companies have varying policies on the length of time since your BK. It's about a 50/50 split between those who want 1 year since BK and those who just want a discharged BK. Several of the companies offered a pre-approval that was good for 90 days. We did that with 2 places - just in hubby's name - and we were approved by both.

Tobee, you are so right - R2BK and her family have been through so much already I just hope their quest for a new home is as smooth and easy as possible.

[Resigned2BK]

90 day approval would be nice. Tobee, we already tried a realtor we know. We met a really nice one when we thought about trying to short sale last Spring and do that HAFA program which she and her partner called the "HA HA" program. Anyway, she went through and did a search on what she has access to and every last house was just over budget, period. We've been cruising through neighborhoods and those that list are way over. Even my haircutter, hearing of our plight last Friday, was asking if we'd be interested in her rental that is coming open but it was $1300 she was asking for, so significantly above our means. And apartments that are reputable looking always have corporate management. Just the way it goes. But if we can get an approval that locks in for as much as 90 days, that would be very nice indeed. We were hoping we could just get one to lock in for 30 days to give us the option of one for sure place while we still examine if another better place can work.

Now if I can just secure work immediately to push our income up!

Even if this short sale stuff drags and drags and I suspect it will, for the sake of the kids and their feeling of stability with their schooling we'd really like to move in July or August at very very latest. Youngest will enter Kindergarten if all goes well, otherwise we might just hold her back a grade if we have to do a Fall move for some reason.

[tobee43]

ahhhhhhhh....i just know something will come up somehow! maybe an excellent job, maybe something GOOD PLEASE!!!

[justbroke]

Personally, I wouldn't allow a multi-month deposit. In fact, there are rental laws which prohibit us from charging more than 1.5 times the monthly rent as "security". Pre-paying rent could be useful, but I can't require it as a landlord. I'd rather approve you on your good rental history, good (stable) job history, less than 33% RTI (rent-to-income) ratio, and recent "good" credit habits.

Sometimes, it's just not as bad as it looks.

[Resigned2BK]

Personally, I wouldn't allow a multi-month deposit. In fact, there are rental laws which prohibit us from charging more than 1.5 times the monthly rent as "security". Pre-paying rent could be useful, but I can't require it as a landlord.

They have laws here that prohibit more than one month's rent in security deposit.

I'd rather approve you on your good rental history

None as we've purchased a home the past 8 years

good (stable) job history

No job history as I've been unemployed/severely underemployed for almost 5 years and DH is self employed for around 13

less than 33% RTI (rent-to-income) ratio

Nope again for the long term unemployment/underemployment reasoning, at best we can maybe swing the 2.5 times that is standard for the affordable tax credit programs if I can somehow get at least $1000K a month to add to our monthly income

and recent "good" credit habits.

And clearly BK shows "bad" credit habits.

Sometimes, it's just not as bad as it looks.

Man, we'd be screwed with your criteria.

[tobee43]

i know many cannot do this, however, have you ever thought about leaving the state. i know i'm from the west coast originally and there was no way we could live there. we left the north east because it was way to expensive after we lost our jobs, so we had to relocate to another state where we were able to afford to live on our pension and ss and at the time our unemployment insurance payments.

it was really hard to leave our kids etc. but we knew there was no way we could live or make it where we were.

today, i think many people except the darn banks don't necessarily think people with a BK shows they are irresponsible or have bad habits, shoot, this was millions of people unemployment in this country and losing their homes. there is strentgh in numbers..LOL!! even bad one's so i know at least here in florida it's not that difficult to rent a place now if you had a bk, since there have been so many in this state.

i know you will land on your feet. this is such a tough, unforgiving road it seems at times. i can't wait until the time you can look back and say "remember when we had to go through this or that" it will come!

[Resigned2BK]

I wouldn't mind moving, Tobee. Heck, I moved out here to a job 12 years ago. DH spent the last 13 years building up an ongoing business that, should we relocate out of the area, it would probably take him 4-5 years just to get back to reasonable level of business. He also has a group he finally connected into last year that has been really making good progress over time at getting consistent well-paying work. I've applied for numerous jobs over the years that would be probably enough on that one income to float us awhile until he could establish in a new place, and nothing ever works out. It's not just hard here, it's hard just about everywhere. That's why we (DH and I) laugh when the politicians and newscasters just call this economy "The Great Recession." We call it "Great Depression #2."

In rereading the previous post of mine, I should have just said I need to make $1000 or $1K, obviously not $1000K. Oops. LOL. We aren't in deficit by a ton and if I really really have to, *shudder* I will seek employment at a fast food place where that $1000 can be a reality. Awful to think I'll be turning 39 and working minimum wage!

[justbroke]

Man, we'd be screwed with your criteria.

It's not my criteria. It's a national association of landlords that sets the standards. As a landlord who has been burned before -- caused my bankruptcy -- I can tell you that these standards should be the bare minimum guideline. Otherwise, you end up with turnover, evictions, property destruction, etc.

In no way does that reflect o you, but it's the same as looking at a FICO score to determine credit worthiness. While FICO doesn't say how much you make or if YOU yourself have ever defaulted, it gives a reasonable estimate of the likelihood of default. Unfortunately, a person who has had 5 different jobs in the past year does not have stable income.

Your case is fact specific. You have some hardship. I could weigh that, but, again, I'm a private individual. When I rent, you paying most if not all of the mortgage . You don't pay... I'm in a bind!

For what it's worth, a BK isn't a "bad" credit practice. There are many people that use bankruptcy as a strategic tool and come out with pretty good credit scores thereafter. It's how one dealt with credit prior to filing bankruptcy (or the event which precipitated the bankruptcy) which is indicative of the person's true financial habits!