Veteran, filed two weeks ago, need mortgage

[clubmanager]

Hi,
A little background....
we both had excellent credit scores but a job loss and the ownership of two houses (that we could not sell, shortsell, etc) have caused us to file. Our creditors meeting in in 10 days via telephone as we now live in another state.

We both have great jobs and earn about $120K per year and about $70K in retirement accounts. We only have one debt; my car at $417 per month and one more year to pay on it. We are both veterans.

The house is $140K and we can easily make the mortgage payments even with a 10 year loan.

So, who will lend to us? Anyone?

Thanks everyone! This board has been so helpful.......

[fltoo]

Going to be almost impossible, but your best try is the VA loan.

Did these other houses use up your vet cert or do you still have it available to you?

[justbroke]

So, who will lend to us? Anyone?

It is not likely that you will find a lender. The fact that you file Bankruptcy is what they see. not that you had great credit scores before.

If it's a Chapter 7, you can probably get a new loan in a couple of years through the FHA programs available to discharged debtors. Other than that... I have no clue.

[Tbornetun]

No one, you may want to try to work CD out with the current owner, or rent from them for a couple years until you are able to get a mortgage. You wouldn't qualify for a VA loan until you are 2 years out from the discharge of a BK.

[fltoo]

Normally, it is 2 years. But, the VA loves a good sob story. If you have established credit in the past 12 months and IF the BK was due to a situation that was not your fault, illness, etc., then I have seen the VA grant loans 12 months out of BK.

Be prepared to write letters explaining the BK and the financial situation in detail.

[clubmanager]

To answer the questions I can remember, neither of us have used our VA benefits and none of the discharged debt is related to the VA.


I emailed the VA and they asked me to call. The lady said I could attempt it and take my chances. Judging from our conversation, it seemed like they would be OK with my getting the guarantee but that I had to find a lender willing to lend....doubtful.

So, I am not sure where this leaves us. I have asked our realtor to contact the seller and see if we can rent for a year and give us time to get this together somehow. I am fairly certain that I can get $40K or so together in this time and surely that would help us in getting financing?

Would the fact that I have a 10% service-connected disability help at all?

Not sure what else to do really. Thanks for the responses.