Loan Requirements For 100% Home Finacing After Bk

[MTG_BANKER_OH]

You can obtain a zero down mortgage one day after Chapter 7 given you have a middle score of 580. This is obtainable if you restablish credit just after the discharge. Which is very important to do if you want to get your scores back in line quickly. A $300 credit card or secured card works wonders right after CH 7 to get your scores up quickly. you have to make sure y ou keep your balance to below 50% of the credit limit it is best if you can keep it to below 30% of the limit.

Another thing to look for just out of a chapter 7 is to make sure your accounts are reporting correctly and not still reporting late after the discharge of the BK. If they are still reporting late after the BK they are in violation of the Fair Credit Reporting Act and it is fairly easy to get the accounts delted once you have them in violation. There are form letters here and on other websites that can help you out with this.

One can obtain a mortgage or a refinance while in chapter 13 with the BK courts approval. FHA is the best route if you have 12 months of chapter 13 pay history. You can obtain a good rate low 6's currently as long as you have a good pay history in a chapter 13.

[bonky]

From my experience here in KS - You will not find a lender - even with good pay history to refi you in a chapter 13. Perhaps in other states, but not KS. We tried and after our payment had doubled to $1500 a month, we were forced to file a chapter 7 and lose our house.

[MTG_BANKER_OH]

From my experience here in KS - You will not find a lender - even with good pay history to refi you in a chapter 13. Perhaps in other states, but not KS. We tried and after our payment had doubled to $1500 a month, we were forced to file a chapter 7 and lose our house.

I am sorry to hear that. Did you look into FHA, I have gotten loans approved while in chapter 13 with an FHA loan. FHA loans do not differ from state to state, just lender to lender.

[bonky]

We had tried everything and everyone. Noone could help us - or so they said. Very disheartening. We had filed a 13 to begin with to save the house and had been in it 2 years. It is done now - so...

Bonkey's wife

[edwards2]

bonky...did you try Countrywide Home Loans? I know Full Spectrum Lending approves loans with less than perfect credit..they are a division of Countrywide.

[SinkingFast]

Until I got to talk to the last Customer Service Rep, I wouldn't have recommended Countrywide to anyone. The first 2 I talked to were outright rude. Didn't answer any of my questions. Didn't explain anything.

Then I got a real nice lady. She told me exactly what we needed to do. Gave me contact phone and fax numbers to send docs to. Very helpful.

The other Reps didn't care. They woulda let me go to Hell and a handbasket and even been there to give me a push.

[BassBoy]

My advice, stay away from Full Spectrum Lending (and Countrywide as well). Frist, Full Spectrum preys on the weak and desperate, knowing full well, that you are really unable to afford it, and I believe their motives are to take you to the cleaners. I tried Full Spectrum, when Countrywide (my mortgage holder) couldn't help me anymore. The first thing I got was that they could lower my payment by $XXX per month, get me feeling good that they can help, but when I ran the numbers myself, something wasn't right. I WASN'T TOLD THIS WAS AN INTEREST ONLY FIGURE and that in 5 years, the payment was going to be $XXX more per month. Basically, my opinion is that they are LOAN SHARKS and PREDATORS.

Now as far as Countrywide.......They are some of the rudest people I have ever had the displeasure of speaking with. When our world was seeming to fall apart in Oct.04 when my previous employer cut salaries and hours and we had a hard time managing, Countrywide was able to help us a little and take off some of the strain by allowing us to pay what we could. Okay, so then everything seems to return to normal for a while, but guess what, my hours get cut again......and still on a reduced salary. Well Countrywide didn't even care. They said, "Sorry, we can't help you." "You already owe us $XXX and you need to pay up or else face foreclosure."

Stay away from Countrywide and Full Spectrum......just my opinion though.

[13inOR]

My aunt has Countrywide, and though she has no BK issues, says they have hideous customer service and she plans to dump them as soon as she can refi without a prepayment penalty.

[down&out]

DOn;t waste your time with countrywide - I made that mistake. They will promise you adecent rate. What they will not be clear about is that they want you to pay points to get it. I tried through them and they offered me 7.5% if I paid 8 points on the loan - 1 point = 1%. So for the right to refi they wanted to charge me 8% of the house value

[SinkingFast]

Well I have to take back what I said earlier about Countrywide. When I called back this week to check with the Work Out Dept to see if they got our letter and docs, I couldn't get thru to the Work Out Dept. I was routed to the same department. Customer Service for delinquent loans.

The Rep I got this time was nice enough, but he said the lady had given me inaccurate info. We did not qualify for our info to be processed by the Work Out Dept and our loan could not be placed into Forebearance.

AND,.......... I asked for the name of the investor backing our loan. I wanted to try contacting the investor directly to see if the investor would cut us some slack. Countrywide won't give us the name of our investor.

[MTG_BANKER_OH]

DOn;t waste your time with countrywide - I made that mistake. They will promise you adecent rate. What they will not be clear about is that they want you to pay points to get it. I tried through them and they offered me 7.5% if I paid 8 points on the loan - 1 point = 1%. So for the right to refi they wanted to charge me 8% of the house value

No one should ever have to pay 8 points for anything mortgage related for a discount points or origination points that is the max that brokers are allowed to charge if 7.99, which is outrageous in the first place.

[SinkingFast]

Just wanted to say, Nick, that's it's good to have you on the Forum.

Wish more experts were as considerate and helpful. Instead of trying to advertise, you are offering useful information.

Others that have come here try to solicit. What they don't realize is,........... If they will give their time and answer questions, people will contact them.

A little time spent here helping people can result in business leads as well.

Welcome aboard, and TY for your insight and assistance!

[Lesa13]

Loans out of BK

Nick, could you expand a little bit on the FHA part? I was under the assumption FHA was "first time home buyer's assistance" and you could only get FHA help if you hadn't owned before (or hadn't owned for a period of a few years)?

Thanks

[HopeinHorizon]

Just wanted to throw my 2 cents in here too..

The United States as a whole has a high cost violation of anyone making over 8% of the loan in fees, it is out of compliance and against the law!

Some states have lower % laws too... for instance some like GA have a 5% maximum, and most lenders have a 5% compensation cap too to stay within compliance...

I work in a compliance department, and if that 8% loan was on my desk I would call the broker and tell him to lower his fees or no deal... In the business this is what we term "Section 32", most brokers abide very nicely..

[FilingOnMyOwn]

Just wanted to say, Nick, that's it's good to have you on the Forum.

Wish more experts were as considerate and helpful. Instead of trying to advertise, you are offering useful information.

Others that have come here try to solicit. What they don't realize is,........... If they will give their time and answer questions, people will contact them.

A little time spent here helping people can result in business leads as well.

Welcome aboard, and TY for your insight and assistance!

I agree I think this guy is great. If I was in the market for a house I would go through him.