Saw this in another forum, very nice info:

[whipster1]

Re: Question regarding the purchase of a home after bankruptcy 7 Options

Fiscalresponsiblity
Visitor
Posts: 7
Registered: 04-11-2009



Message 11 of 12

Viewed 64 times


I just closed on my USDA loan today with my chapter 7 one year ago to the month 11/08-11/09. I had a short sale march of 2007, but I had a perfect 20year credit history prior to this. It can be done and I am living proof it can be done. I just got my loan thru RBC Bank and they use Chase as a pass through. They are still doing these loans and don't let anyone on here tell you any different. I had a score of 825 prior to my job layoff. When I filed chapter 7 it dropped to 580, in one year I have re built it to 695 and its climbing. Keep the faith and don't take no for a answer, there is a bank out there for you !


11-06-2009 08:30 PM


hxxp://ficoforums.myfico.com/fico/board/message?board.id=bankruptcy&thread.id=5067&view=by _date_ascending&page=2

(replace the xx's with tt)

[justbroke]

Notice the perfect 20-year credit. The only thing that this person had was the short-sale. I wonder why they filed Chapter 7 to start with. There are many what I call "one-off" stories of how an individual successfully does something that shouldn't be possible.

I will say though, that the individual's story is what counts at the underwriting desk. This person had a 695 middle score at the time of applying, and could demonstrate a very successful credit history for 20-years before being laid off from work. The reason they got into trouble was due to an unforeseen calamity (unemployment, disability, war).

But, I like that it can be done in limited circumstances.

[Flamingo]

People need to know that many places hire and pay for folks to go onto forums with their "success" stories usually always naming the financial institution or company in the process. I'm not saying this posting falls into that category but not everything is picture perfect after filing for everyone and for the one person who may get the loan, there are hundreds who do not...As Justbroke states, a lot depends on one's individual situation and also how they handled their credit in the years prior to filing. I can actually attest to that as our good credit prior to filing got us a new car loan at 0% interest prior to our Chapter 13 discharge. We were told it was due to our paid off, never late, prior car loans with the same lender.

[oldhack]

In an earlier post in the same MyFico.com thread, the successful applicant in the original post acknowledges getting a credit waiver due to job loss from USDA, so this was NOT a typical situation, but rather a 'one-of-a-kind' scenario, as justbroke and Flamingo have identified.
In other words, unless you're in almost the same situation, this isn't applicable to you.

[jal1129]

Also guidelines are constantly getting stricter. When TBW closed in Sept, I think it was, guidelines tightened again. Since then USDA is pretty strictly adhearing to the 3 year wait.