Loan Requirements For 100% Home Finacing After Bk

[SinkingFast]

I've been on other Forums where Pro's in the field came on regularly to answer questions. No sales solicitations. They got business directly from members of the Forum for being so helpful.

You don't always have to push the sale to get the business.

When we were trying to sell our truck the other day, I started out at the Dodge dealer. Wanted a quick sale. Didn't wanna mess with ads and phone calls and such. The Dodge dealer guy looked at my truck and made his best offer. He knew it was less than I needed. But,....... The Dodge guy told me to go to an independent little lot right down the street. He said they would pay more. AND keep the extended warranty info to myself. That we could cancel that extended warranty and get back a chunk of change.

So, I went to the other lot. They offered more. Sold to them. Went back to the Dodge dealer and cancelled the extended warranty. We originally paid $2500+ for that extended warranty and we'll get back right at $2K from that. Quick sale and the refund on the extended warranty got me the price I woulda got selling out right private party sale. Done in minutes. No ads. No phone calls. No haggling.

One time when things went right for us recently!!

And, that Dodge dealer is where we'll go the first opportunity we have to buy a car. That guy didn't have to tell me that piece of info, but he did. And it got money for us. I appreciate his help and I'll sure consider buying from them in the future.

[FilingOnMyOwn]

I've been on other Forums where Pro's in the field came on regularly to answer questions. No sales solicitations. They got business directly from members of the Forum for being so helpful.

You don't always have to push the sale to get the business.

When we were trying to sell our truck the other day, I started out at the Dodge dealer. Wanted a quick sale. Didn't wanna mess with ads and phone calls and such. The Dodge dealer guy looked at my truck and made his best offer. He knew it was less than I needed. But,....... The Dodge guy told me to go to an independent little lot right down the street. He said they would pay more. AND keep the extended warranty info to myself. That we could cancel that extended warranty and get back a chunk of change.

So, I went to the other lot. They offered more. Sold to them. Went back to the Dodge dealer and cancelled the extended warranty. We originally paid $2500+ for that extended warranty and we'll get back right at $2K from that. Quick sale and the refund on the extended warranty got me the price I woulda got selling out right private party sale. Done in minutes. No ads. No phone calls. No haggling.

One time when things went right for us recently!!

And, that Dodge dealer is where we'll go the first opportunity we have to buy a car. That guy didn't have to tell me that piece of info, but he did. And it got money for us. I appreciate his help and I'll sure consider buying from them in the future.

Not only that sinking, but if I were you I would have gone back and given him a nice tip. $2000 in cash that you wouldn't have had otherwise? I think a $50 spot would show a him a nice token of appreciation

[lilgoose]

Stay Away From Countrywide!

We had Countrywide and an Equity loan thru another. Countrywide offered to refi the our equity loan and have a lot lower pymt. We did and the payment was lower. Little did we know that the loan was a flex loan that was an interest only loan.

So, when we decided to file Ch 7, we let the house go back also. They are still reporting on our credit report that we behind and it was discharged in Dec 05. They (bk dept) are aware that we filed and they cannot legally come after us for any $$$, but they are messing with us in the way that they can and that is thru our credit report.

So, my advice is to STAY AWAY!!!

Good Luck!!

[SinkingFast]

Not only that sinking, but if I were you I would have gone back and given him a nice tip. $2000 in cash that you wouldn't have had otherwise? I think a $50 spot would show a him a nice token of appreciation

I would do something, FOMO, if we could, but every penny matters right now.

We're kinda keeping a list of people who've been really nice and helped us lately.

Hoping that when things get better, we'll be able to repay kindnesses in some small way. Just to let them know that we appreciated having their help when we needed it most.

[MTG_BANKER_OH]

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

FHA is not just a first time homebuyers loan program. There are some local government sponsored loan programs that are strictly for first time hmebuyers where you can not have owned a home for the past 3 years. If you have not owned a home in the last 3 years you are generally considered a first time homebuyer. You can qualify for a FHA loan asa long as you do not currently have a FHA loan, or have an FHA loan that will be paid off when you sell your home. FHA is a great option where someone has demonstrated that they have paid their bills on time and just do not have the scores to go another route. Many times FHA can be a good route even if your scores are good. You can get a good rate with one loan that is at the conforminng rates or lower with 3% down that can be gifted by the seller. FHA is probably the best option for someone 2 years out of a Chapter 7. You can not have any lates after the BK though, but you do not have to go subprime and deal with a short term fixed rate with a prepayment penalty.

[cruserone]

would a ch.13 refinance qualify for an fha loan? Im 14 months into a 100% payback plan and would like to refinance and pay off the bk. What kind of ltv is acceptable?

[Pumpkin729]

Mortgagte question for Nick and all

Hi Nick....Hi all

We are currently 17 months into our 5 yr Chapetr 13 plan. While in the plan both our car payments have finished. Saving both car payments so that we can payoff when we reach the 36 months. Our mortgage payment was not included in the BK, we pay it outside the plan (Have never been late). When we payoff at the 36 months we are looking to move from PA to FL. Hubby retires one year after the payoff, so that gives us a year to save for the move. At that point we want to sell the house here in PA and buy one in FL. My question to you is do you think we'll have a hard time getting another mortgagte??? Remind you...that either one of us will have jobs until we move to FL. We are trying to have the house set up and ready for us to move right into when we move there. When hubby retires we will have a nice retirement plan to fall back on. Can we use the retirement money as collateral? We'll be putting like 50% down on the mortgage. How do we go about setting up a house in FL while we are still in PA? Is this possible without having jobs set up in FL? Our mortgage right now is a VA loan. Can we get another VA loan with them once we sell the first house being we filed CH 13? What kind of mortgage would you suggest? Hubby is at his current job 31 years. Anyone else have any suggestions please jump right in. Thanks so much

[thirdtimer]

Is it really possible to pay off your 13 early if some creditors are paid off sooner than expected. I know our 60 month plan cannot be shorten, they will only pay the unsecured a higher percentage

[MTG_BANKER_OH]

would a ch.13 refinance qualify for an fha loan? Im 14 months into a 100% payback plan and would like to refinance and pay off the bk. What kind of ltv is acceptable?

You can refinance to pay off the Chapter 13 or just obtain a lower rate on your current loan. With over 12 months of "on time payments" you should qualify. The thing you need to look into is what your house is worth compared to what you owe on it currently. How much do you think that is? Then you need to look into what it costs to pay off your Chapter 13 it will probably be higher then your current payoff of what you have paid down already. You can possibly qualify with FHA you can go to 95% cash out to pay off the BK. Another option would be to see how your credit score is curretly and there are some other lenders that will allow 100% to pay off the Chapter 13 but the rates are very high.


Let us know a couple of things:

How much is your house worth compared to what you owe on it?
What is your current mortgage balance and interest rate?
Do you have any credit outside of the bk? eg. you rmortgage was not included

One problem with the chapter 13 is if there is nothing reporting outside of the Chapter 13 your credit score goes down or does not exist at all because y ou have no reporting credit.

[MTG_BANKER_OH]

Hi Nick....Hi all

We are currently 17 months into our 5 yr Chapetr 13 plan. While in the plan both our car payments have finished. Saving both car payments so that we can payoff when we reach the 36 months. Our mortgage payment was not included in the BK, we pay it outside the plan (Have never been late). When we payoff at the 36 months we are looking to move from PA to FL. Hubby retires one year after the payoff, so that gives us a year to save for the move. At that point we want to sell the house here in PA and buy one in FL. My question to you is do you think we'll have a hard time getting another mortgagte??? Remind you...that either one of us will have jobs until we move to FL. We are trying to have the house set up and ready for us to move right into when we move there. When hubby retires we will have a nice retirement plan to fall back on. Can we use the retirement money as collateral? We'll be putting like 50% down on the mortgage. How do we go about setting up a house in FL while we are still in PA? Is this possible without having jobs set up in FL? Our mortgage right now is a VA loan. Can we get another VA loan with them once we sell the first house being we filed CH 13? What kind of mortgage would you suggest? Hubby is at his current job 31 years. Anyone else have any suggestions please jump right in. Thanks so much

You should be ok to buy another house after the chapter 13 payment plan. What price range would you be looking at for your new home? It would be tough to get into a new home as your primary residence unless you have jobs in florida. You could look into doing it as a second home before you completely move. The rates will be high but you can refinance back into a va loan after you move. You can not do another VA loan until you have sold your current residence or paid off the VA loan. It is a good thing your mortgage was not included in the BK so you have some reporting credit on your credit bureau. You are saying you will put 50% down, is that from the sale of your current home or from your retirement? You are going to be better off if you can leave your retirement funds alone. If you are going to put 50% down you should have no problem getting financing. Are you going to find work in florida or areyou going to retire?

[cruserone]

Thanks for the reply. Here is some of the info- my current mortgage balance is 133500 at a 9.5 interest rate.The last time I had the house appraised two years ago it appraised for 170000.My mortgage payment is not included in the bk. and I have made those on time since the bk. I am somewhat unsure as to the amount left to be paid on the bk. The plan base shows 53000 with 19100 paid into the plan so far. It shows a total of 15000 paid to all creditors so far. So is my bal. the 53000 minus the 19000 or the 15000? Im not sure. We have made all the payment to bk on time. Currently between the bk and the mortgage pmt we are paying out over 3000.00 monthly. We really would like to refinance if possible.

[MTG_BANKER_OH]

Thanks for the reply. Here is some of the info- my current mortgage balance is 133500 at a 9.5 interest rate.The last time I had the house appraised two years ago it appraised for 170000.My mortgage payment is not included in the bk. and I have made those on time since the bk. I am somewhat unsure as to the amount left to be paid on the bk. The plan base shows 53000 with 19100 paid into the plan so far. It shows a total of 15000 paid to all creditors so far. So is my bal. the 53000 minus the 19000 or the 15000? Im not sure. We have made all the payment to bk on time. Currently between the bk and the mortgage pmt we are paying out over 3000.00 monthly. We really would like to refinance if possible.

Where are you located? One option would be to look into just refinancing the mortgage you should be able to get in the mid to lower 6's? You may want to look into what it would cost to pay of the chapter 13, your attorney can help you out with this.

[cruserone]

we are in missouri. what would be the advantage of just refinancing the mortgage? would it be easier than refinancing the bk and mortgage? Any suggestions on any mortgage lenders in missouri that would be experienced in dealing with our situation?

[MTG_BANKER_OH]

we are in missouri. what would be the advantage of just refinancing the mortgage? would it be easier than refinancing the bk and mortgage? Any suggestions on any mortgage lenders in missouri that would be experienced in dealing with our situation?

The benefit of just lowering your monthly payment for your mortgage by just refinancing the mortgage into a lower rate. It is up to the court if they will allow you to lower your monthly payment or if they will decide to take the extra savings you will gain and put it into the BK payment intstead. This would be a question for your attorney. If you are looking to pay off the BK it is your probably should look into your credit scores. And see where they are, with an FHA loan you have to potential to take 95% of the appraised value for cash out to pay off your BK. IF that roust does not work you will have to look into a subprime loan where your chances will be score driven, some lenders will allow up to 100% for a bk buyout but your rates will be where your curent mortgage is if not worse. You are going to need a credit score of 580-600+ to do this, where FHA is not credit score driven but credit driven. WHich means they will look at your last couple of years and see how your payment history has been , but they focus primarily on the last 12 months for the most part. It is tough for me to reccomend lenders since I am on the inside as a mortgage banker/broker, where I am only licensed in Ohio and Florida and we sell our loans to the lenders after closing as compared to actually working at the bank some times our guidelines are a little easier to get things approved. For FHA you should look into Birmingham Bank(somewhat a subprime FHA lender), I recently have gotten a CHapter 13 refinance FHA approved through GMAC not taking cash out to pay it off but jus lowering the monthly mortgage payment. Washingotn Mutual. On the subprime side you shoudl lookinto option one, Decision one, delta Funding. You probably are best off if you can find a good broker to help you out in your area.

[Pumpkin729]

reply:

Hi Nick...

Mortgage wasn't included in BK 13 but they have it listed on the credit reports as being included in a wage earner plan. We are making the mortgage payments outside the plan. Looking for a house probably around $100,000. The down payment will be coming from the retirement. The equity in the house when we sell will be just enough to pay off the VA loan that we have now. As far as work in Florida hubby will be looking for part time work.