Post BK Ch. 7 Mortgage Question

[robivi3]

I have two Mortgages. My Ch 7 discharged back in May, 2004. I was never late on my Mortgages or Vehicle. I have about $50,000.00 positive equity in the townhouse. value right now around $170,000.00. Ft. lauderdale, Fl.

Anyone got an idea what my chances/rate on a new single Mortgage would be? Equifax score 640, Transunion approx. 640, experian 554 (for some reason).

[NOMO$$]

With a 640 score, this will put you into Sub Prime Lenders, but you would still be able to attain an acceptable rate. Depending on other factors including income, active lines of credit and your past mortgage history, you would be able to attain rates as low as 6.0% on a 30 year. Some mortgage brokers will charge you a higher rate by telling you that your BK limits your opportunities, but that is not always the case.

Keep in mind that mortgage brokers like myself make money on how much we charge you up front as an origination point with 1-2% being typical and then how much we make on floating the interest rate above "par" or what the bank sells the loan for. So if some brokers are going to charge you one percent higher on your loan, that has the potential to add another 1-2% to their income. Make sure you shop around with brokers and get multiple good faith estimates, as they will differ greatly.

Some lenders are very particular about BK having been discharged for 24 months before they would touch the file, but others only need 1 day and good income.

Good Luck

[ucanthvit]

Not all the facts

You could still do "A" paper depending upon the reason for the chapter 7. Most lenders in A paper prefer that it was discharged for at least a year.

Also, if you deal directly with the bank, 9 times out of 10 you will not have origination fees involved. You should really look over all of your fees first before signing anything.

[ucanthvit]

Sorry, back to the chapter 7 filing. The reason for filing, either; financial mismanagement, or due to unforeseen circumstances (loss of job, etc.). Either way, you would have to provide paperwork stating the reason you filed.