Post BR Home Buying in new regulatory environment 2011?

[bluegrass06]

Hi,
Just want to say this forum was a great source of comfort and info during our BR process in 2008. Thanks for all the info. Now the question:
As everyone knows the banking and mortgage documentation requirements have tightened up considerably since the mortgage and banking collapse that started several years ago and continues to this day. That said, I want to find out if we have a chance of getting a 100% mortgage to buy a home post bankruptcy and foreclosure. Here are our specifics:

- Chpt 7 Bankruptcy discharged Dec 2008. Home was not included in the BR and discharge.
- VA home loan that we were advised by our BR lawyer to let go into foreclosure instead of BR. We moved out mid 2008, not sure when the final foreclosure took effect but I did find on the city real estate site it sold for about $80,000 less than what we owed on the loan.
- We have had 2 successful car loans with reasonable % rates we are paying on since the BR, one through our credit union and the other through Honda Finance.
- We have each obtained credit cards with low limits to help rebuild our credit as well.
- We make a good salary and have both been in our jobs for >10 yrs.

My questions are:
- Since we are 2 1/2 yrs post BR do we have a chance of getting a 100% mortgage?
- Am I still eligible for a VA loan since the foreclosure? What other types of loans have others found to be obtainable for BR survivors?
- How much out of pocket should we budget if we are eligible?
- Who do we start talking to locally to find out our eligibility (credit union, VA, mortgage lenders)? I don't want to randomly go to different sources and waste time if we are not eligible or if they are not going to be receptive.

Our intent is to buy a home, possibly a foreclosure since we can do most repair work ourselves, below market value and well within our budget. We currently pay $1000 rent for a condo don't want to pay any more than that monthly for a mortgage payment. We really want to get back into a detached house with a yard, privacy, etc.

All feedback is greatly appreciated. We know several friends in the real estate industry but we don't mix business with friendship, and more importantly don't want them to know our finances or be aware of our past experiences. Thanks.

[screentest]

Hi,
Just want to say this forum was a great source of comfort and info during our BR process in 2008. Thanks for all the info. Now the question:
As everyone knows the banking and mortgage documentation requirements have tightened up considerably since the mortgage and banking collapse that started several years ago and continues to this day. That said, I want to find out if we have a chance of getting a 100% mortgage to buy a home post bankruptcy and foreclosure. Here are our specifics:

- Chpt 7 Bankruptcy discharged Dec 2008. Home was not included in the BR and discharge.
- VA home loan that we were advised by our BR lawyer to let go into foreclosure instead of BR. We moved out mid 2008, not sure when the final foreclosure took effect but I did find on the city real estate site it sold for about $80,000 less than what we owed on the loan.
- We have had 2 successful car loans with reasonable % rates we are paying on since the BR, one through our credit union and the other through Honda Finance.
- We have each obtained credit cards with low limits to help rebuild our credit as well.
- We make a good salary and have both been in our jobs for >10 yrs.

My questions are:
- Since we are 2 1/2 yrs post BR do we have a chance of getting a 100% mortgage?
- Am I still eligible for a VA loan since the foreclosure? What other types of loans have others found to be obtainable for BR survivors?
- How much out of pocket should we budget if we are eligible?
- Who do we start talking to locally to find out our eligibility (credit union, VA, mortgage lenders)? I don't want to randomly go to different sources and waste time if we are not eligible or if they are not going to be receptive.

Our intent is to buy a home, possibly a foreclosure since we can do most repair work ourselves, below market value and well within our budget. We currently pay $1000 rent for a condo don't want to pay any more than that monthly for a mortgage payment. We really want to get back into a detached house with a yard, privacy, etc.

All feedback is greatly appreciated. We know several friends in the real estate industry but we don't mix business with friendship, and more importantly don't want them to know our finances or be aware of our past experiences. Thanks.

Bluegrass,

I am not familiar with VA loans; however I believe you need to wait now 3 years post foreclosure because you did not include the mortgage in the BK. FHA is requiring 2 years post BK and 3 years post foreclosure, conventional mortgage, forget about that for at least 5 years.

Unfortunately because your attorney told you to do a FC and not include the mortgages in the BK (why??) you will now show both a BK and a foreclosure on your public records section of your CR. If they were included in the BK then no foreclosure would have been reported. This is a double whammy and may make it more difficult to get a mortgage so soon. I have both as well however only show mortgages discharged in my chapter 7 no foreclosure. (I still have to wait 3 years for FHA though)

I would call VA, explain the circumstance and ask if they would forward your file to an underwriter for final confirmation.

Good Luck
ST

[bluegrass06]

From the VA website:
Q: Can I get a VA loan if I have had a bankruptcy in the last few years?

A: The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply:

If the bankruptcy was discharged more than 2 years ago, it may be disregarded
If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you and/or your spouse are a satisfactory credit risk unless both of the following requirements are met:
you and/or your spouse have reestablished satisfactory credit, and
the bankruptcy was caused by circumstances beyond your and/or your spouses control (such as unemployment, medical bills, etc.)
If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you and/or your spouse are satisfactory credit risks.