Any new programs that anyone is aware of....

[tradinglife]

Have read on this forum about several people who have had success getting a loan before the 2-3 yr bk foreclosure period. Every realtor and lender I talked too says 3 years wait on any loan, including USDA. My concern is even though our chpt 7 has been discharged 1 year ago, the house we included in it is still sitting empty, foreclosure procedding havent started yet. At this rate, it may be another year before foreclosure is processed and home is sold. So then we have to wait 3 years after the sale date?!! wow! That is pretty depressing, especially since we are paying 1000 a month rent in an area where we could buy a nice home for less if we had financing. We are in Kentucky and interested in a rural home for about $140,000 or less and have 5 % down while saving more each month. Does anyone know of any new programs that may be available, and is it true that we may get a USDA loan that would consider score and other criteria that would qualify us without the bk-foreclosure wait? I posted this on another old thread here, sorry, should have put it here. Any help would be appreciated.

[tradinglife]

any comments?

Wow, with so many people in this situation, thought there might be some comments. They keep lowering interest rates to stimulate home sales, when a big part of the market can't buy for the next several years. I read an article somewhere that said nearly 50% of home sales right now are cash buyers, so how does lowering mortgage rates inprove the housing market?

[Logan]

IMO the biggest problem with the housing market is everyone with a foreclosure is out of the market for at least 3 years. In a normal market when someone sells their home they buy another but with all the foreclosures homes are being put on the market without another being taken off. Of course there are other problems but this one I never hear anyone talk about.

And as of now there are no programs that I've herd of that will let you get a loan sooner than 3 years.

Eddie

[HHM]

Actually, the ONLY success stories you have seen is USDA Rural Development loans, and even those are spotty at best. Let's not over state it, NO ONE here has had success getting a conventional or FHA or VA loan before the mandatory timelines (2 years for BK, 3 years for foreclosure). The only player that even offers a shot is USDA. The other members that have been able to buy a house have only done so with owner financing.

FHA does have a provision for "special circumstances", but honestly, I haven't heard of anyone qualifying under that program.

[tobee43]

IMO the biggest problem with the housing market is everyone with a foreclosure is out of the market for at least 3 years. In a normal market when someone sells their home they buy another but with all the foreclosures homes are being put on the market without another being taken off. Of course there are other problems but this one I never hear anyone talk about.

And as of now there are no programs that I've herd of that will let you get a loan sooner than 3 years.

Eddie

actually, it could be longer than that if you were involved with a foreclosure as well as a bk, as the FHA and other programs the criteria is 3 years after the exchange or transfer of the deed ownership. the pain about that is many banks are not even foreclosing, so those people are left in mortgage limbo. (like me) that's why we did an owner financed circumventing the banks altogether.

[tradinglife]

owner financing

The owner financing sounds good in theory, however the few I've seen in my area are pretty edgy rent house types of homes with crazy terms. If I where selling my home I would rather have buyer have cash or traditional financing. I guess. Unless I had no other options to sell the house, so I can see why most sellers would not cxonsider owner financing. A client who is a farly high powered realtor thinks she may get me something worked out thru USDA in the next year, we will see.....Also have read about a couple of programs that may come out to address issues like mine. Thanks for the comments.

[tobee43]

The owner financing sounds good in theory, however the few I've seen in my area are pretty edgy rent house types of homes with crazy terms. If I where selling my home I would rather have buyer have cash or traditional financing. I guess. Unless I had no other options to sell the house, so I can see why most sellers would not cxonsider owner financing. A client who is a farly high powered realtor thinks she may get me something worked out thru USDA in the next year, we will see.....Also have read about a couple of programs that may come out to address issues like mine. Thanks for the comments.

well we tried the USDA to no avail...if you check there are only certain areas they cover.

i think one needs to know how to put that theory into a real viable contract. we didn't have any crazy terms, actually, i set out the terms and the offer. i'm not certain one is going to find someone today with enough cash on hand to pay out right for a house, and as far as traditional financing, i know someone who just a few weeks ago with no credit issues and a 750 score get turned down by a bank 4 FOUR days before their closing. i just don't trust the banks anymore, or better said, cannot depend on them.

[imoverit]

I just want to add my 2 cents. We are currently in the process of getting a VA mortgage 2 years post CH 7 discharge. We had a major underwater house that we wanted to get rid of. Many, many people told us to just let it go, but in our state it would probably still be sitting there waiting for the foreclosure process and we in turn would still be waiting. We opted to go the short sale route. We had 2 mortgages that had to be negotiated. Our realtor kept up with the yard/pool and we kept the power on. It had a contract rather quickly and closed right before our discharge, even with the bank having to get the relief of stay. I had to provide the satisfactions/lien release for both mortgages to the current lender we are dealing with and the current loan has made it through underwriting so far. We are due to close in a few weeks if all goes well. I am cautiously optimistic we will have be homeowners again by this time next month!

[tobee43]

I just want to add my 2 cents. We are currently in the process of getting a VA mortgage 2 years post CH 7 discharge. We had a major underwater house that we wanted to get rid of. Many, many people told us to just let it go, but in our state it would probably still be sitting there waiting for the foreclosure process and we in turn would still be waiting. We opted to go the short sale route. We had 2 mortgages that had to be negotiated. Our realtor kept up with the yard/pool and we kept the power on. It had a contract rather quickly and closed right before our discharge, even with the bank having to get the relief of stay. I had to provide the satisfactions/lien release for both mortgages to the current lender we are dealing with and the current loan has made it through underwriting so far. We are due to close in a few weeks if all goes well. I am cautiously optimistic we will have be homeowners again by this time next month!

you truly are one of the "blessed"...i know of no one that was able to close on a short sale. i know when we first came to florida we tried and tried and TRIED and TRIED to get a house in a short sale and it was never realized. however, that was some time ago and i hope the banks are now more willing to accept the offers. that was the problem when we were looking at them, one would go into contract but the banks would never accept the offers .

times have changed, especially here in florida with so many empty houses, so i'm really keeping my fingers and toes crosses for you!!!!

best of luck! and keep us posted as to how it goes!

[imoverit]

Thanks for the well wishes!! I really think the success of the short sale depends on the realtor. We had a very agressive realtor that had a process in place in dealing with the banks and they really kept on top of them. I attribute the sale to them, especially dealing with 2 mortgages. In our recent house hunt we find most of the houses are short sales that seem to get contracts quickly. Most of them seem to disappear from the MLS (as if they closed) and others reappear available and state that the buyer walked. I guess its hit and miss with the banks and the realtors. I'll keep posted. Over the years I have come on here searching for stories of successful home purchase post discharge. It always gave me hope!

[tobee43]

Thanks for the well wishes!! I really think the success of the short sale depends on the realtor. We had a very agressive realtor that had a process in place in dealing with the banks and they really kept on top of them. I attribute the sale to them, especially dealing with 2 mortgages. In our recent house hunt we find most of the houses are short sales that seem to get contracts quickly. Most of them seem to disappear from the MLS (as if they closed) and others reappear available and state that the buyer walked. I guess its hit and miss with the banks and the realtors. I'll keep posted. Over the years I have come on here searching for stories of successful home purchase post discharge. It always gave me hope!

i think you so right with having the best realtor one can fine...that's how we found this place. he was the BEST ever. i very much agree with you, you need someone on YOUR side for certain.

i have a great feeling you'll be in that house soon

[tradinglife]

home loan

Good to hear the success stories, we are gonna look into the USDA programs being as we are in a rural area and my income being nearly halved in the last couple years we should qualify. Our realtor works in the area and is familiar with these. We are hopeful that we can get something worked out in the next year, being as we are paying 1000 a month rent, and the modest home we are hoping to buy woould be several hundred a month less even at a higher rate. Oh well, I am making a part-time job out of researching, hoping I can find a loophole somewhere where we can buy a house without the foreclosure timeline. Our house technically still has not been foreclosed, it may be 2 years from what i'm hearing before the process is over and it's out of our name. On our credit report the 2 mortgages show paid off included in bankruptcy, not sure if that is how they are supposed to appear or not.

[tobee43]

that's a great plan tradinglife.

as far as how fast the banks are foreclosing, i'm not certain how they are picking and chosing....i'm going on close to 4 years now and not one word from chase. we have tried to get them to move on it, but nothing. and, in the state that foreclosed property is in, the statue of limitations is 20 years for the bank to release our names from the deed. as far as we know, since the house now has major structural problems ,(from what we are hearing through the grapevine), the bank may chose to never foreclose.

we just didn't wait around and were lucky enough to find an owner that was anxious to sell and get out of the area altogether. so it really was a matter of luck in our case.