How soon after Ch 7 did were you able to purchase?

[Priscillia]

If you filed Chapter 7, and then obtained a mortgage after - how did you have to wait?

[Priscillia]

I mean - how soon after your your Ch. 7 was complete? lol

[ForumReader]

I mean - how soon after your your Ch. 7 was complete? lol

Normally it would be 2 years minimum out of a CH 7 bk. From what I understand, it would be 3 years from a CH 7 with a foreclosed home when applying for a mortgage. Posters, please chime in if I am not correct regarding the foreclosed homes in CH7 when obtaining a mortgage. I have been a tenant for a long while so I have had no experience with foreclosing a home. I have owned homes long ago though!

[HHM]

The problem with this question, most people on this forum are not in a position to rebuy, and those that might be, (who filed BK over two years ago) tend to drop out of participation.

Thus, all you can go by are the published lending guidelines. 2 years after chapter 7 BK, but there are other variables that will come into play, (i.e. your payment history prior to BK, etc).

[Exployer1234]

You can speak to a mortgage lender on what they are finding when people apply with pst BK's. It does not hurt to ask. When and if I decide to buy a house I will make sure htat I have a pretty big down payment. That way I will have a better chance of getting a mortgage loan.

[ABC]

2 yrs from 7
3 yrs from foreclosure
0 days from 13

All are treated separately so if you filed a ch7 but then foreclosed a loan that was included it's still 3 years from the foreclosure.

All assume clean since BK and likely that you wouldn't be able to go back through the same lender you had prior.

WHY buy now anyways ? Prices are not going up. Hold on until at least early 2011.

[Flamingo]

There have been a ton of these postings on here recently (same subject matter). Anyone coming out of a bankruptcy needs to know there is no guarantee they will ever be able to obtain a mortgage again if they let a house go or with a BK on their records or a mortgage at all if they never owned a house previously. The best thing to do is talk to a good broker at the time they are starting to look and see what their options are at that time. Remember, you will have a bankruptcy on your records for 7 to 10 years depending on the Chapter you filed; if a house is let go the new prospective mortgage lender will check with the lender of that mortgage as to your history, and since you are a credit risk will probably not be able to get a conventional mortgage at a low rate but will have to go with FHA which will require risk-based PMI to be paid for the first five years of the mortgage, included in the monthly payment. Depending on the amount of the mortgage loan, that fee can be quite high and that does not include all the extra fees/costs for higher risk credit at closing.

[LSUTiger32]

There have been a ton of these postings on here recently (same subject matter). Anyone coming out of a bankruptcy needs to know there is no guarantee they will ever be able to obtain a mortgage again if they let a house go or with a BK on their records or a mortgage at all if they never owned a house previously. The best thing to do is talk to a good broker at the time they are starting to look and see what their options are at that time. Remember, you will have a bankruptcy on your records for 7 to 10 years depending on the Chapter you filed; if a house is let go the new prospective mortgage lender will check with the lender of that mortgage as to your history, and since you are a credit risk will probably not be able to get a conventional mortgage at a low rate but will have to go with FHA which will require risk-based PMI to be paid for the first five years of the mortgage, included in the monthly payment. Depending on the amount of the mortgage loan, that fee can be quite high and that does not include all the extra fees/costs for higher risk credit at closing.

Thank god for voices of reason! I am getting the point of depression reading this board. The people who can't wait to jump back into cars and houses and credit cards is making me sad! The notion that people think it's even possible to buy a home so soon after BK is just pathetic......because that means that at some point it was probably happening.

[chrisdfw]

I think a lot of people focus on the credit question without thinking about the underlying reason for the bankruptcy. If you lost a job and have not re-established a stable job history it is quite likely they would not approve a mortgage without any credit issues. Everything is full doc now. No down payment loans are largely a thing of the past, even with perfect credit. Also many people don't have the reserves. The reserves are now required, even for people without a bankruptcy.

So here is what you can't get (1st)
A zero down loan the day after getting a new job, with no money in the bank.

But I bet you can (2nd)
An 80% LTV loan, with a stable job history, and 3 months savings,

If you meet the second set of circumstances, I am willing to bet that 2 years after ch7 you can probably get a loan. If you are trying to get a loan under the first set of circumstances, I am willing to bet you wouldn't get the loan even without a BK.

[pris72]

Thank god for voices of reason! I am getting the point of depression reading this board. The people who can't wait to jump back into cars and houses and credit cards is making me sad! The notion that people think it's even possible to buy a home so soon after BK is just pathetic......because that means that at some point it was probably happening.

Everyones decision to file chapter 7 is not always due to not paying anything. We did, and actually had decent credit. Our issue was with a company called NEMDEGELT INC. buying what many would call junk debt on a repo. from 2002(happened during a period of being on workers comp, and surgery from job injury). They bought in 2009. They take us to court,and we are never served. They also filed in a county we didn't live in.It's not the 1st time they have done this, and they also have a F with the BBB for shady collection practices.They are granted a judgement for over $17,000 on $6,000. Again we are never notified to answer in court. 46 days later (we had 45 to contest it), a letter appears at my husbands employer. Automatically 1/2 of his check(which is also illegal according to everything I have read under Ga garnishment laws) is gone. When you suddenly lose 1/2 your pay, you get behind quick. It was either file chapter 7 to stop the garnishments or eventually end up on the streets. We took the chapter 7 route. My husband has been with his present employer now for 16 months with a very good company, who has more work than employees. He has already been promoted and has received 2 raises. We can afford a car right now, and a house. We're renting and paying more for rent than what we would with a mortgage.
The sub prime mess wasn't due to people like me. It was due to people who work at for example walmart and were approved for $150,000 home loans that they knew they never could afford.
We are in the process of looking into an owner fianance on a home, and in a couple of years when we can get approved to carry a mortgage on it-we'll out right buy it and give the owner all of the money for the home, so that he can pay his mortgage off.
Just know that not everyone who has recently filed chapter 7 are irresponsible little children. Bad things do happen to good people, who just come across unfortunate circumstances in life.

[chrisdfw]

Everyones decision to file chapter 7 is not always due to not paying anything. We did, and actually had decent credit. Our issue was with a company called NEMDEGELT INC. buying what many would call junk debt on a repo. from 2002(happened during a period of being on workers comp, and surgery from job injury). They bought in 2009. They take us to court,and we are never served. They also filed in a county we didn't live in.It's not the 1st time they have done this, and they also have a F with the BBB for shady collection practices.They are granted a judgement for over $17,000 on $6,000. Again we are never notified to answer in court. 46 days later (we had 45 to contest it), a letter appears at my husbands employer. Automatically 1/2 of his check(which is also illegal according to everything I have read under Ga garnishment laws) is gone. When you suddenly lose 1/2 your pay, you get behind quick. It was either file chapter 7 to stop the garnishments or eventually end up on the streets. We took the chapter 7 route. My husband has been with his present employer now for 16 months with a very good company, who has more work than employees. He has already been promoted and has received 2 raises. We can afford a car right now, and a house. We're renting and paying more for rent than what we would with a mortgage.
The sub prime mess wasn't due to people like me. It was due to people who work at for example walmart and were approved for $150,000 home loans that they knew they never could afford.
We are in the process of looking into an owner fianance on a home, and in a couple of years when we can get approved to carry a mortgage on it-we'll out right buy it and give the owner all of the money for the home, so that he can pay his mortgage off.
Just know that not everyone who has recently filed chapter 7 are irresponsible little children. Bad things do happen to good people, who just come across unfortunate circumstances in life.

Ouch, they were probably beyond the statute of limitations, you should have been able to appeal and have the judgement voided if you weren't given proper notice. And gotten your money back.

[pris72]

Ouch, they were probably beyond the statute of limitations, you should have been able to appeal and have the judgement voided if you weren't given proper notice. And gotten your money back.

That was my 1st thought, but the chapter 7 route was the only quick fix that we knew. It stopped the garnishments in 3 weeks from our filing date, and they had to reimburse us back everything from the time we filed. Well the courts in the county we filed in actually are the ones who sent us the check. Yes it was a mess. My husband fell at work back in 2002, and he ended up having to get a triple arthrodesis(ankle fusion). He was out of work for 18 months. Sacrifices had to be made at the time in order to keep a roof over our head. Being that he had a truck that was paid for, we did a voluntary repossession on our car that we had. It was really only one of 4 things negative on our credit, but all occurred at that time. We wanted to file chapter 7 back then, but an attorney told us we didn't have enough debt to file. We just left it at that.
I reported nemdegelt inc. to the FTC also, and the BBB. Our BK attorney had heard of them, and the complaints about them. I honestly do not see how they are still in business. The original repo was already off of our credit even, by the original finance company.
It is a shame really that we were forced basically into filing chapter 7 just to stop those garnishments, because who knows what could happen to us in the next 7 yrs. Don't get me wrong, he has a very good job with a good company BUT at the rate things are going in this country who's to say if any of us will have a job a year from now? We could all end up sleeping at tents at this rate.

[AJA]

Well I for one am quite interested in a refinance. My dti ratio was to high based on new job after I retired and moved upstate. When I got hurt last year I knew I'd fall behind. Kid in last year of college and wife underemployed. It's one year and the house is even money but the mortgage is 8%, high rate due to owning 2 homes at once.
I'd save 400 a month at todays rates. I'll be talking to a broker soon to see what my options are, but I'm not holding my breath. I never missed a payment or had a late for
20+ years, then I sevened out.

[chrisdfw]

Well I for one am quite interested in a refinance. My dti ratio was to high based on new job after I retired and moved upstate. When I got hurt last year I knew I'd fall behind. Kid in last year of college and wife underemployed. It's one year and the house is even money but the mortgage is 8%, high rate due to owning 2 homes at once.
I'd save 400 a month at todays rates. I'll be talking to a broker soon to see what my options are, but I'm not holding my breath. I never missed a payment or had a late for
20+ years, then I sevened out.

Good luck, as I said I think that a stable job history, DTI, and a good loan to value are key... BK or no BK.

[LSUTiger32]

Everyones decision to file chapter 7 is not always due to not paying anything. We did, and actually had decent credit. We can afford a car right now, and a house. We're renting and paying more for rent than what we would with a mortgage. Just know that not everyone who has recently filed chapter 7 are irresponsible little children. Bad things do happen to good people, who just come across unfortunate circumstances in life.