Post 13 Friendly Lenders--do they exist in this market?

[WhenThePawn]

Caution--I babble. Read on if you're so inclined.

My husband and I completed our chapter 13 in October 2007. It's been a huge weight off our shoulders. Anyone going through it right now...hang in there, it does end.

Now we're in the clean up phase. We pulled our credit reports a few months ago and found that we're a little below an "average" score, but definitely not by any means on the "bad!" end of the spectrum. We found that some creditors were reporting inaccurately, so we're sending letters and trying to get that fixed, too.

Throughout the last 3 years, we've held off on a lot of things because we had no other choice, really--house renovations, having kids, etc. We kept saying, "When this is over, we can do xyz to the house to open up the space and be happier (and roomier!) as we start a family." Of course, it isn't that easy.

We contacted the broker who helped us when we took out a mortgage in 2003. He told us today that with our credit, BK history, and the market, our hands are tied right now. We're pretty bummed and aren't sure what else, if anything, we can do.

Does anyone have any suggestions? Are there reputable lenders that are post-bk friendly? Do you think another mortgage broker is likely to tell us the same thing?

We owe 151k (6%) on the current loan (originally took out 165k). The renovations (we already have the plans drawn) will cost between 50k - 60k. The house is now worth about 210k.

We're both employed and make about 95k yearly. The only debt we have is my school loans--about 11k.

Any insight would be much appreciated.

[lrprn]

Congratulations on successfully finishing your 13 - that's fantastic!

Because of the state of the mortgage industry right now, you are probably going to have to hang on for two years or so to open up decent financing. Frankly right now, that's not such a bad thing. Your house may not be worth quite as much as you think it is unless you are in one of the pockets around the country that isn't in a home value free-fall at the moment.

This is a great time to start building your savings. The more you can put down on a large remodel project, the better your financing will be when the time comes.

[Flamingo]

Your attorney who handled your BK is a good source for a broker reference for those out of BK who want to refinance. Give him/her a call and ask for a reference. Lrpn is right as to the market now. Only those with stellar credit are getting mortgages and those that do get them are checked out totally. It's going to take the market a while to adjust after the subprime mess and lenders are extremely picky right now. Unless your house repairs are an emergency (i.e., roof ready to go, etc.), it would not hurt to wait a bit. During that time do not be late with one single payment on anything and save. This is just my advice to you but there is nothing stopping you from investigating refinancing so start with your attorney for a broker reference. Remember you will get hard inquiries on your credit reports if you investigate several options for refinancing and they stay on your credit reports for two years and can be a negative as to your credit scores.

[persephone]

I would try to find another mortgage lender who expresses a little hope in the situation. We called 4 before finding that our relator had a friend who did all types. He is currently trying to get us into a rural dev loan. They told me with a score of 620+ they can put an explanation in with the loan (about the reasons for bankruptcy, ie. layoff).

Definantly keep looking! Anything is possible!


PS: All mortgage inquiries within 45 days will count as 1 inquiry (per credit reporting agency).

[Flamingo]

PS: All mortgage inquiries within 45 days will count as 1 inquiry (per credit reporting agency).

Our mortgagor and broker both advised us that during the mortgage process, a person has a 14 day window where they can have several credit inquiries and it will only count as one hit to the credit score. This was on paperwork provided by the credit bureaus that was given to prospective buyers and was told it applied to mortgage applications and car loans. Where did you obtain the "45 days will count as 1 inquiry (per credit reporting agency)" information? There is a big difference between 14 days and 45 days.

[persephone]

Our mortgagor and broker both advised us that during the mortgage process, a person has a 14 day window where they can have several credit inquiries and it will only count as one hit to the credit score. This was on paperwork provided by the credit bureaus that was given to prospective buyers and was told it applied to mortgage applications and car loans. Where did you obtain the "45 days will count as 1 inquiry (per credit reporting agency)" information? There is a big difference between 14 days and 45 days.

Myth: Shopping around for a mortgage or car loan will hurt my score.
"When a lender makes an inquiry about your credit, your score may drop up to five points. For this reason, some borrowers are afraid that comparison-shopping will result in multiple deductions. This isn’t the case. Credit scorers treat multiple inquiries for a mortgage or car loan as a single inquiry, as long as they all come within 45 days. So your best strategy is to do your rate shopping within this time frame." - LendingTree.Com
Source:

http://www.mogabu.com/Credit_Repair/Credit_Myths_and_Facts.php

----------------------
Lender credit requests are considered “hard inquiries” and can affect your score. Keep in mind, though, that the credit bureaus understand that savvy consumers want to review multiple loan offers, so the bureaus consolidate all mortgage loan credit inquiries within a certain period (which can range from 14 to 45 days) and count them as one inquiry.
Source:

http://www.lendingtree.com/smartborrower/Credit-scores/Credit-inquiry-FAQ.aspx

-----
Fico Scores:
Here’s what Fair Isaac, the company behind your FICO score, says about rate shopping:

“The score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.”*
Source:

http://www.lendingtree.com/smartborrower/Credit-scores/Credit-inquiry-FAQ.aspx

[Flamingo]

I see....so any of the credit bureaus can use a certain period from 14 to 45 days to group those inquiries as counting as one. So it could be all within 14 days or all within a certain time period ending at 45 days for multiple inquires to count as one depending on that particular CRA. So you really can't bank on 45 days as the ending point for multiple mortgage and/or car loan inquiries.

[MTG_BANKER_OH]

Caution--I babble. Read on if you're so inclined.

My husband and I completed our chapter 13 in October 2007. It's been a huge weight off our shoulders. Anyone going through it right now...hang in there, it does end.

Now we're in the clean up phase. We pulled our credit reports a few months ago and found that we're a little below an "average" score, but definitely not by any means on the "bad!" end of the spectrum. We found that some creditors were reporting inaccurately, so we're sending letters and trying to get that fixed, too.

Throughout the last 3 years, we've held off on a lot of things because we had no other choice, really--house renovations, having kids, etc. We kept saying, "When this is over, we can do xyz to the house to open up the space and be happier (and roomier!) as we start a family." Of course, it isn't that easy.

We contacted the broker who helped us when we took out a mortgage in 2003. He told us today that with our credit, BK history, and the market, our hands are tied right now. We're pretty bummed and aren't sure what else, if anything, we can do.

Does anyone have any suggestions? Are there reputable lenders that are post-bk friendly? Do you think another mortgage broker is likely to tell us the same thing?

We owe 151k (6%) on the current loan (originally took out 165k). The renovations (we already have the plans drawn) will cost between 50k - 60k. The house is now worth about 210k.

We're both employed and make about 95k yearly. The only debt we have is my school loans--about 11k.

Any insight would be much appreciated.

You may qualify for a FHA 203k. You may want to consult with a broker/ender that has experience in these types of loans most brokers/lenders are not very well versed in these loans. If you can get approved for a FHA loan then you should be able to get approved for a FHA 203(k) rehab loan. If your scores are low currently then you may want to get them up bacaue most lenders have rate adjustments under 580 which are large, now and some with any scores under 620.

M&T bank does a lot of these if they are in your area you may want to check with them.

[Gorge]

and looks about preapproval process

[Logan]

and looks about preapproval process

Spam?

[Gorge]

Spam?

Orly?