Buying a house after Bankruptcy

[JeepMom]

mandy-not to be rude but this isn't thre place for that question, might I suggest you place it here: http://www.bankruptcyforum.com/f6-chapter-7.html

[whatcredit]

First time post - so please be easy on me!

Our house went to foreclosure June of last year. We had some nice investors buy our house and let us rent from them until we could get back on our feet. We are going to be filing bk chap 7 in the next week which means it won't be finalized until June something. The problem is, they want to move out of state ASAP. Our "lease" is up in June and if things had gone as they were supposed to, it could've been extended after that. Since they don't want to be encumbered by this house after their move, they would like to be out of the loan. (Which I completely understand!)

Any thoughts on seller financed options? That way, we can stay here until we are ready to buy a new house and make the improvements needed to sell the house in pristine condition. My concern is making them feel like their investment is secure and not being stuck with our house as a liability.

Thanks to everyone here for being so helpful in the past. I've just now decided to "delurk".

[Pumpkin729]

An 80/20 can be done to avoid the private mortgage insurance.

Find a broker to talk to-it can give you an idea of specific goals to work on. I can recommend one that I'm working with. He has been great with questions, etc. even though we really won't be a customer until summer. He is licensed in all states but ND, SD, MT, VA, NY, LA, TX, NV, & RI.

can you share who are u working with?

[Samantha]

if you want to purchase a home it is best to try to do so before you file the chapter 7. I am a mortgage broker and i help people who are in foreclosure and bankrupcy if you have a bankrupcy or foreclosure on your credit it is harder to get approve for a home loan, you would have to wait for at least 1-3 yrs before you can purchase a home. Now if you are in foreclosure and bankrupcy and you currently own a home you sholud try to refinance to save your credit or sell the last option should be the lease to buy back which i also do for clients who do not want to deal with a mortgage.

[SCNurse]

Buying a house after bankruptcy

We just had our bankruptcy discharged in January. We bought a car in February and when we bought the car they said our credit score was 650. We are looking at buying a house and I know I can't go through a bank right now. Who would be a good lender to go with? Thanks for your help!!

[debtisbad]

Subprime lenders tend to be ok. The deal is that you will pay more with a subprime, however, with interest rates at lows, that tends to not be a problem for most. And never buy what your realtor or the subprime lender qualifies you for. They are just looking to make money. Also, and this is just my opinion, I would be very careful in the real estate market right now. If rates do climb, prices will come back down to more realistic levels. Subprime is the fastest growing of the lending institutions. Hum, I wonder why???

[SinkingFast]

You can try Countrywide. They have a subprime division called Full Spectrum Lending. There's a thread:

http://www.bankruptcyforum.com/t7769...after-bk-.html

That poster got a loan thru them.

Our Mortgage was with Countrywide. I have noticed a couple of problems with them. They are so huge that sometimes their right hand does not know what their left hand is doing. We're in Foreclosure but we keep getting solicitations to take a Home Equity Loan. Also, when you call in, sometimes the Reps give you the wrong information. If you call right back, and get a different person who's more knowledgeable, they'll say, "I don't know why that representative told you that!" I called the other day and needed information from our Foreclosure Tech. The Rep I spoke with gave me the wrong person's name as being our Foreclosure Tech. Fortunately, I had to call back immediately for something else and the next Rep said I'd been given the wrong name. Thank Goodness I called back and got the correct information. Otherwise, all of our paperwork would been going to the wrong place.

Also, you can try Lending Tree on-line and see how many responses you get from there.

[fsugirl]

I posted before but we were d/c in January also...Our scores are in the 600's middle score is 599 and we were qualified 100% financing with Countrywide, and we are set to close in 2 weeks The interest rate is not WONDERFUL but it is manageable !! It can really happen ! Homeownership might be closer then you think !

[SCNurse]

That is great fsugirl!! If you don't mind sharing, what kind of rate did you get? I just want to know what I can expect.

[fsugirl]

Oh geesh !

Ok here goes...ON the first mortgage which is the 80% it is 8.375 and the second mortgage is 11.875...I know it's not the best but we are going to refinance in 2 years which will be perfect because we will be able to go FHA after that.

[rst6pac]

has anyone had any experience with the usda rural program? we just got our discharge. yyyyyyyyyaaaaaaaaaaaaa and a lender we were talking to said we may qualify for it

[SCNurse]

I talked with a mortgage company today. I was prequalified for a loan with a 9% interest rate. Not that great, but at least I can refinance.

[fsugirl]

SC-Are you doing 100% loan or are you putting money down ??

[SCNurse]

100% loan. They said we wouldn't have to put anything down.

[fsugirl]

WOW ! That's awesome ! So the whole 100% is 9 % interest ?? That's great ! Ours is an 80/20 loan and the interest on the 2nd mortgage is high

CONGRATS TO YOU !!! I am already packing boxes and getting ready to move..We close in less then 2 weeks !