Buying a house after Bankruptcy

[tinroofrusted]

See, this is what bugs me. I mean that now with the new laws, like the old ones. In reality, you'd be considered "Gold" as you couldn't do a BK for a long time now.

However, I can also see that any lender who isin't careful, would end up being burnt like a chicken in a overloaded broiler......

True, but the whole idea of bankruptcy is a fresh start.
Too many creditors forget this, and in fact, I think that if we were to look more deeply into rejection reasons, we might even find that stating that a turndown due to bankruptcy is illegal. (Don't hold me to this, because I am only starting to research it.)

What I don't understand is the unwillingness from most to allow for a second chance. It's not like we can file again for SIX years. That means, in my books, that we would be less of a risk than, say, someone who hasn't filed and is up to their a$$ and elbows with credit cards and debt......

[sobroke]

Sorry to return to this subject, but I was hoping to build a modular home next summer. I was told that modular homes are considered stick built. Do banks really not classify them as stick built? I was told the difference between a modular and manufactured home is modular is stick built and manufactured has a steel frame. The difference between the two is about $14K. Please don't debate about this, but maybe someone can shoot me a PM? Thanks.

[Tberry]

house after bk

Hi! I have not posted anything for a while, but I would like to reply to this qusetion of buying a home out of BK. My husband and I were discharged in March of 05, and we are closing on our first home Dec. 20th. It can be done. Lazar is right, you need to check your credit reports and scores to make sure they are correct with no errors. We had four or five that caused our scores to be very low, but once they were fixed, our scores went up significantly. we are now at a 711. Be patient. I don't know if I can say this on this board, I don't want to recommend any businesses, but Dominion homes has a great program for people out of BK. We got a great rate, 6.25%, and no closing costs. You might want to look and see if they build homes in your area! Good Luck!!!

[StaciMM]

I see your logic-a recent BK'er has no way 'out' for 8 years. BUT, if I were a creditor, I think I would be a little shy also. It is taking a risk to grant credit to a new BK'er because there is nothing to distinguish the guy who makes great choices but had bad things happen to him from the guy who ran up every credit card he had, and hasn't gotten his spending under control yet.

What I don't understand is the unwillingness from most to allow for a second chance. It's not like we can file again for SIX years. That means, in my books, that we would be less of a risk than, say, someone who hasn't filed and is up to their a$$ and elbows with credit cards and debt......

[StaciMM]

Congrats, and thanks for the positive post! We'll be in the buying a home after BK boat, sometime between August '06 and May '07.

Hi! I have not posted anything for a while, but I would like to reply to this qusetion of buying a home out of BK. My husband and I were discharged in March of 05, and we are closing on our first home Dec. 20th. It can be done. Lazar is right, you need to check your credit reports and scores to make sure they are correct with no errors. We had four or five that caused our scores to be very low, but once they were fixed, our scores went up significantly. we are now at a 711. Be patient. I don't know if I can say this on this board, I don't want to recommend any businesses, but Dominion homes has a great program for people out of BK. We got a great rate, 6.25%, and no closing costs. You might want to look and see if they build homes in your area! Good Luck!!!

[Genenco]

Hi! I have not posted anything for a while, but I would like to reply to this qusetion of buying a home out of BK. My husband and I were discharged in March of 05, and we are closing on our first home Dec. 20th. It can be done. Lazar is right, you need to check your credit reports and scores to make sure they are correct with no errors. We had four or five that caused our scores to be very low, but once they were fixed, our scores went up significantly. we are now at a 711

It's Slurpee Time! (I couldn't resist, I worked at 7-11)

[sobroke]

Lets say hypothetically you want to buy a house 1 day after discharge. Your scores are above 580. What would a typical interest rate be if the market was at 6% for 30yr fxd? Just curious. Also would the amount of the loan be effected by the bankruptcy? Any experts out there? Thanks a million!

[StaciMM]

You can try here:

https://www.newcentury.com/fastQual/index.jsp

I found their website as they're known as being BK friendly. The link allows you to put in #'s (without anything that will run your credit) and get ideas on what programs they offer, including rates & payments. Your rate will depend, based on state and LTV%, as well as doc type.

Lets say hypothetically you want to buy a house 1 day after discharge. Your scores are above 580. What would a typical interest rate be if the market was at 6% for 30yr fxd? Just curious. Also would the amount of the loan be effected by the bankruptcy? Any experts out there? Thanks a million!

[sobroke]

WOW. Thanks StaciMM! That is a great website!

[msouth01]

There is life after bankruptcy. I'm a mortgage broker that have approved loans for people one day out of bankruptcy with 100% financing depending on credit score. I currently am licensed in Iowa and if anyone is interested in seeing what they qualify for or how to clean up their credit after bankruptcy call me today at 515-276-7878 and ask for Michelle at Advanced Home Lending

[sobroke]

Can anyone recommend any mortgage companies? I am ready to start looking, but I don't want tons of inquiries. My FICO is about 650 (middle score) I am post-bk about 7 months. I would like to go with an ARM (since I will be refinancing in a couple of years) with a low rate--around 6% or so. Is this possible? Has anyone been approved with this and with what mortgage company?

[StaciMM]

You should have a few options, assuming you are basing your mid score on FICO. I'm working with someone who posts alot at credit boards.com, I'll pm you his contact info...

[gamblingman]

Be careful as FICO has bad BBB rating

The best place to get your real FICO scores is at www.myfico.com/12
It costs $45 and you get all three files with actual scores. The ones sold invidivdually by each of the 3 players is there own score using their own formula.

I checked out the FICO site with the BBB Online and they have an unsatisfactory rating. This stoped me from using them as I am a member of the BBB and I know how they work on giving a business chances to clear up complaints.

[masters93]

mortgagebroker1
My bankruptcy was dicharged in 6/2005. Currently I am disputing things left on my credit report to finish cleaning it back up. As far as I know my credit score is 580 You stated earlier that you can help someone in my postion secure a mortgage how do I contact you to further discuss wether i would qualify for a mortgage?

[StaciMM]

Gamblingman-

FICO is the only outlet for getting your FICO score. They don't let anyone in on details to their methods for calculating the score, so buying a score from another source will not give you the same results.

Kind of like how a person graduating from a high school in one state compared to a person graduating from a high school in another state... States & schools tend to have different educational strengths/weaknesses, and requirements for graduating. Even if the 2 have the same GPA, their education is not necesarily the same.