Buying a house after Bankruptcy

[ironpirate]

Just want to make a note that Veterans United isn't bankruptcy friendly and don't use them for a VA loan.

[scht65]

Hello, just completed my Chapter 13 (100% payoff) and have a job offer to relocate to California. I have not had any chance to rebuild my credit as of yet. Where would I look to for pre-qualification for Northern California

[sofarsogood2]

Working with a smaller bank right now on a refi- will let ya'll know how it goes.

He seems to think he can do this. He agrees with Mercer that the date of the BK- not the date the bank sells.

Fingers crossed!

[HOMEBODY]

Can someone PM me for a broker in Southern california? I want to purchase a house that costs $260.00. I have the 20% to put down. I filed for BK in June 2010 and discharged August 2010. I included an investment home which foreclosed in Feb 2011. Is it possible to buy a home now?

[girlgator95]

Hi All,
We are about 17 mos. out from our CH7 discharge. We also have a foreclosure that occurred prior to our BK filing. Our home was resold in Dec. 2010 by the bank. My question is...since our foreclosure happened prior to the BK filing, will we be able to start looking for a new home in January 2014? We are saving up as much as possible for a down payment, but don't know that it will be 20%. Our FICO scores seem to be improving little by little. I think they are in the mid 600's currently. Any advice on finding mortgage brokers/banks when the time comes?

[denisec]

You don't need 20% down, go to FHA and they require 3.5% down. They require 2 years after bk discharge...You should have at least 3 credit lines established post bk, and you need to show perfect credit history for 2 years post bk. Get some credit cards, even if they are secured and make regular on time payments, and keep your balances down.

[tobee43]

You don't need 20% down, go to FHA and they require 3.5% down. They require 2 years after bk discharge...You should have at least 3 credit lines established post bk, and you need to show perfect credit history for 2 years post bk. Get some credit cards, even if they are secured and make regular on time payments, and keep your balances down.

it's still up to the discretion of the lending institute and most are not lending with exception of lucky few. i have seen people out of bk 5 years perfect record, charge cards ...seen people with more than 20% down and still can't get the loan. i actually saw someone with more than 50% down and still couldn't get a loan.

[antithat27]

I don't know what FHA rep you spoke to or from what center. I've called in to question a guideline which was questionable and can tell you that a few of them just read from the 4155. And as mentioned earlier...some lenders do have overlays which limit their risk of buy backs by adding additional requirements to the guidelines. Couple this with the fact many loan officers have been in business less than 5-9 years, and are only familiar with FHA the last 4 years. Some un-educated loan officers actually call FHA the new subprime.

I would most certainly start the pre-approval process. It will at least give you a clearer idea than posting on this board and potentially receiving mis-information.

Just keep this in mind. It will not be easy, it will not be a walk in the park, you will get frustrated, you will feel like the lender is asking for two much, but you very well may be a home owner again.

I mentioned yesterday, that one of my recent clients was in a similiar situation. BK in 2010 with included 1st and 2nd included. Bk seasoned through 02/2012. Pre-approved 02/2012 with 635 midddle credit score. Offer made on new home 03/2012. Loan approval issued 03/2012 with 2% down----special program, also approved 203b with 3.5% down. Final Clear to Close issued 03/2012 and borrower will move in early 04/2012.

I don't tell the story above to boast or prove everyone wrong...I tell it because it's true and you have the potential to realize the same opportunity

marcer,

It's awesome to know that you can give us all good news about owning a home after BK. When possible, please let me know if you recommend any lendor/realtor in my area that specializes in these type of home loans. Thanks.

[okteacher]

My home was destroyed in the May 20th, OKC/Moore tornado. I paid the reminding mortgage with the insurance check & have over $50,000 in savings for rebuilding. I was discharged from Chapter 13 in May 2012. I am completely frozen, lost and terrified about applying for a new loan. (Not exactly sure why) I need suggestions of who to approach about a new loan, etc. Thanks

[anykey]

It is 2 years- for PFHA.