Buying a house shortly after Chapter 7 & Foreclosure

[FS09]

Looking to file a chapter 7 on June 1st. Will most likley foreclose on current home since I have a 1st for $406K, 2nd for $120K and the house is worth $360-$370. Was appraised at $540ish when I bought it 4 years ago!!! I haven't paid for 3 months at this point.

I really hate renting long term and there are some really good opportunities to buy new homes that are just sitting close to where I live. I can get a new home I really like for around $300K...a huge saving over the $526K I WAS paying on my current home. I could afford this once I finish my BK & foreclosure, assuming all goes well. I know, I'm getting ahead of myself! FWIW - I will pay nearly $2K in rent to keep my kids in the same school district which is important to me. I will sell everything I have, including non-vital organs to make this as stable as possible for my kids!

Has anyone been successful buying a home within 1-6 months after completing my chapter 7 and foreclosure, or am I dreaming? My wife thinks she may have found a few private lenders that would work with us. I will get their names later, she's out of town. I know the interest rate would be high, but I don't mind that for a year or two while I rebuild my credit. If all goes well, and I can stay in this house a while before being tossed out, I could save 10-20% for a down payment.

Thoughts???

[dogbone33]

Apparently there are places that don't care about your bk. A friend of ours is working with someone (who is 1 yr out of bk) who said they just want your credit score to be 620 or better. Which ours are 619 and 628 after discharge! My hubby thinks we should try, I said we need to wait, we are on a land contract for 2 years but would like to get the low rate. They also don't care about foreclosure. I just think it sounds too good to be true. Maybe call around and ask.

[monkatom]

I am 1 year out of BK chp 7 and going through a foreclosure. i am having trouble getting a loan and may have found two private lender's but they both want 30% down. Our stats are good with 11K gross and no monthly debts and ficos in the high 600's. Just letting you know. I have contacted numerous brokers, credit unions, etc. If you find someone and they will work with someone in CA let me know via PM.
Thanks

[TheBrokeCouple]

We will be discharged on year in July from our Ch7 BK. We have been told that per FHA guidelines if you let your home go back to the bank it's 3 years before they will loan to you and 5 years for conventional mortgage. If no hom is involved, they will loan to you after 2 years.

We are looking into the USDA loan program sponsored in each state. I have a lending company checking into it for me who should call me later today.

This loan requires no money down, a low interest rate over 30 years, 2% fee which is rolled into your loan. There are requirements such as income guidelines, and where the property is located.

I'm just not willing to wait 3 years if I don't have to. We want a home with a back yard and more space than our 1100 sf apartment. It's nice and new here, and we love the pool, but there's nothing like owning your own HOME.

Good luck to you!

[hereforinfo]

You wouldn't be able to get FHA or conventional financing, they won't lend to you until it's been 3-4 years after a foreclosure. Your only option, and it's a longshot, would be a private lender with a HUGE downpayment and a 12-14% interest rate. That would make the payment on a $300k mortgage the same as what you are probably paying now on a $500+ mortgage.

But you are getting way ahead of yourself. You are in the middle of a foreclosure and bankruptcy. It's going to be a long road ahead to rebuild your finances and credit. And by assuming you could "just refinance" in a couple of years, isn't that what almost everyone who is upside down or in foreclosure right now thought when they got their ARM loans a few years ago?

[Scooter10]

Apparently there are places that don't care about your bk. A friend of ours is working with someone (who is 1 yr out of bk) who said they just want your credit score to be 620 or better. Which ours are 619 and 628 after discharge! My hubby thinks we should try, I said we need to wait, we are on a land contract for 2 years but would like to get the low rate. They also don't care about foreclosure. I just think it sounds too good to be true. Maybe call around and ask.

Be carefull. You have a possibily of getting in trouble again. You have a fresh start with your BK.
Heres a few questions:
How much are they asking for cash down, 10% is going to be minimum?
Do you really hink you are going to get approved for new mortgage in 2 years?
What happens if property values continue to decline, and you cant get finance because your LTV is too high? No mortgage = loss of you down payment as your contract is up and they do not have to renew. They can now foreclose and sue you for deficiency judhement, or just foreclose to take proprty back, because you can not get a mortgage.

i would wait, get "real" financing and not take the risk of getting bank into a financial hole again