Buying a house after Bankruptcy

[denisec]

wrong, it's two years form discharge date.

[Ugh07]

We have a somewhat unique situation. We filed Ch7 and the discharge was 07/09. We included our house in the BK, but it hasn't been auctioned yet. It is just sitting there vacant. As far as we know, the bank has taken possession of it, but it has not shown up on our credit report as a foreclosure yet. Our monthly household income is more than $10,000, and our monthly debt is only about $500. We are currently renting, and got a car loan in March, and have had no late payments since the discharge.

My question is: Might it be possible for us to find a lender to give us a house loan ($150,000 or so) at this point? We wondered if we would have a better chance to get approved for something before the foreclosure actually shows up on our credit, but unfortunately it's before the preferred 2 years after discharge. We can come up with 5% down, but would like to avoid having to come up with 10-20%.

Any help or advice would be greatly appreciated!

Losing a job is not considered a "hardship". You will have to wait 3 years after the foreclosure date. I would check with the county ASAP and see if the bank has actually taken title to the house. If they havent then your clock hasnt even started yet. Underwriters will search public records in addition to reviewing your credit report so the foreclosure will turn up there.

[denisec]

Wow, it's amazing looking at these entries from years ago. I am curious, what kind of programs do you have now? Not being facetious. :=)

[denisec]

Hi Clark,
Now that we're in a very different market, I find it amazing reading these posts for 2005. Just curious but what kind of programs do you have now for bks and foreclosures?
Not being facetious. Really, are there any programs at all out there that don't charge 12% interest.

[LSUTiger32]

Yeah, I didn't make that clear enough. Usually medical issues are the only way to really get the hardship waiver from FHA but I am hoping that someone doing a manual underwrite will see that our income is high, our credit usage is a non-factor anymore because there is none, and we own a car and a home than we paid on through the BK and continue to do so with no issues. It is freaking killing me with rates below 4% out there that I am in this situation. I could save $300 a month easily if I could re-fi right now.

[LSUTiger32]

Hi Clark,
Now that we're in a very different market, I find it amazing reading these posts for 2005. Just curious but what kind of programs do you have now for bks and foreclosures?
Not being facetious. Really, are there any programs at all out there that don't charge 12% interest.

That dude made 4 posts in 2005, I don't think he is around anymore!

[pris72]

Has anyone been approved for a home with less than 2 yrs. since their discharge? I guess I am just impatient and want a home of my own. Now credit guidelines are even stiffer, due to so so many getting into homes they could not afford to begin with. Some lost homes due to job loss, but the majority atleast where I live do not fall into that category. I just want a starter home with payments less than what I am paying for rent. We filed chapter 7 more for medical bills and a couple of charge offs.We never had owned a home prior to filing chapter 7.

[LSUTiger32]

Has anyone been approved for a home with less than 2 yrs. since their discharge? I guess I am just impatient and want a home of my own. Now credit guidelines are even stiffer, due to so so many getting into homes they could not afford to begin with. Some lost homes due to job loss, but the majority atleast where I live do not fall into that category. I just want a starter home with payments less than what I am paying for rent. We filed chapter 7 more for medical bills and a couple of charge offs.We never had owned a home prior to filing chapter 7.

Hey, please don't take this the wrong way but you are on here looking to buy a house and on another thread looking to buy a car, both on credit. First off, it's not going to happen on the house for one year minimum on an FHA (if you can strongly document the medical reasons for the BK) and more likely two years. As far as the car is concerned, you will find idiot companies out there that will give you a loan at 15% interest, but don't do it. Save some cash and buy a car. Don't get right back into the same situation. Relish being debt free for now, it should be a great feeling!

[veggirl]

Question: my bf owns a home (has owned for almost 4 yrs), and his ex is still on the deed. I am thinking of buying out her share and and we would put it in both our names. At this time my bk will be cleared for 2 yrs. Would this affect the name change on deed or financing? Thanks

[jdelgado3760]

house after bankruptcy

Robivi, Sara and anybody looking for info on refinancing or buying a home after bankruptcy. I am a mortgage banker located in NY and do financing for homeowners in over 38 states nationwide. I have closed many loans with people after bks including my own refinances. With a 600 score in the sub prime market your are looked at as A+ borrower, and with as much equity in your home as you say you anybank should be fighting for that loan and getting you the best interest rate around. I recently closed a loan with a borrower just out of bankruptcy with a 580 score and got them 7.5% 30 year fixed which dropped there interest 1.5% from what they originally had. I deal with over 100 diffrent banks and am myself a banker so if you need anymore information on this or want a free credit check and report with consultation on your next move to securing a financially sound future contact me at:

Mike Armella
Senior Mortgage Banker


Good luck to all contact me anytime i am available 24/7.

Hi Mike

are you still in the in the mortgage business? I would like to get more information about a home after bankruptcy. Can you help?

[jwsmartin]

Anyone know of any banks that will do a manual override on a conventional loan? We have documented extenuating circumstances and we are about to hit 3 years out of our chapter 7 bk and foreclosure on fha loan. All documentation points to the fact that we can get a loan IF we can find a bank willing to do the override. Any help would be greatly appreciatted.

[denisec]

You sound like you already know this but: Are you sure you don't want to go FHA? Is the home too high in price for FHA limits? You would only need 3 years after the BK discharge for FHA. Did your home foreclose at the same time that you had the bk discharge? The reason I ask is it's possible that you might have to wait 3 years after foreclosure (when the home is sold at auction) before you can get an FHA loan, if the foreclosure occurs AFTER the BK discharge, and this is pretty certain on a prior FHA, whereas other mortgages there is a chance that you can do 3 years after the discharge even if the foreclosure occurs later....that is if it's conventional. Good luck.

[larryt]

I agree, I have an off frame modular home, 3500 sq feet. financed with Bank of America, and gained in value, Built far better than many homes we looked at, including stick built. Id put my 2 x 10 roof framing and 2x6 outside walls against any out there. Modern Modulars are not the trailers of yesteryear. there are good and bad builders in both markets, Ive looked at many.

[marcer]

[QUOTE=denisec;523030]You sound like you already know this but: Are you sure you don't want to go FHA? Is the home too high in price for FHA limits? You would only need 3 years after the BK discharge for FHA. Did your home foreclose at the same time that you had the bk discharge? The reason I ask is it's possible that you might have to wait 3 years after foreclosure (when the home is sold at auction) before you can get an FHA loan, if the foreclosure occurs AFTER the BK discharge, and this is pretty certain on a prior FHA, whereas other mortgages there is a chance that you can do 3 years after the discharge even if the foreclosure occurs later....that is if it's conventional. Good luck.[/QUOTE

Mortgage discharged through bankruptcy follows BK seasoning. Foreclosure w/o bankruptcy requires different seasoning policies

[marcer]

BIG NOTE******* Mortgagee Letter 2012-3***New changes now require all adverse credit with balances of 1,000.00 or aggregate---total combined all items--- to be paid in full at time of closing, have an accepted pay plan established with 3 months payments made, or paid in full prior to closing. This is for all case numbers issued after April 1st.

***Extenuating circumstances are not exempt. Section 184 loans for Native Americans or Alaska Natives are exempt from this policy****

If you are attempting to purchase a home in the near future...this could make things a little rocky. ****BTW...this includes medical collections now. Traditionally, medical collections were overlooked...not anymore****



FHA will allow borrowers to forgo seasoning requirements for adverse items when certain circumstances are involved. These include but are not limited to: Death of contributing member or spouse and serious medical illness of contributing member or spouse. U/W will generally have some flexibility on what they determine to be extenuating. Divorce or job loss is not extenuating, despite these being outside of the borrowers control. When applying for a mortgage, whether VA, FHA, USDA, or Agency, it is important to note the cause for adverse credit, what remedies are in place now, and why you feel you can manage your debt presently and in the future.

It is especially important that your letter be very detailed and have supporting documentation such as medical history, statements from physician, death certificates, and yes...even letters from creditors which you have history with. Note*** do not have your loan officer write your letter** Be prepared to bare it all out. The more you can humanize yourself, the better it is for the U/W to understand and possibly agree to approve you. ***Loan officers cannot tell the story like you can*** If your extenuating circumstance happened some time ago and you have recent adverse credit...you will be declined.

If you have not re-established credit since the adverse item, be prepared to provide letters of credit such as rent, car insurance, and utility bill for a 12 month period. Note**** alternative credit does not negate poor credit history but can illustrate your willingness to pay to an U/W*** Typically, extenuating circumstances are viewed much differently than just poor credit. Alt trade lines may not be needed if the extenuating circumstance is recent