Hoping to close next month, but....

[downwardspiral]

Next month it will be 4 years since our bankruptcy discharge. In July we signed a Purchase Agreement to build our new home. The mortgage company gave us a solid pre-approval. They did a full check; two years of tax returns, 6 months of pay stubs, bank statements, etc. We were approved and proceeded. Our mortgage broker said we are guaranteed our mortgage, provided we don't mess up our credit between now and then or lose our jobs.

So today I came here, after years of not coming, to see how everyone was. I saw the post about foreclosures being included in bankruptcy and how the 3 year clock for foreclosures doesn't start until the title is taken out of our name.

So I went to the property appraisers website and found that property #1 was removed over 3 years ago. Property #2 was removed 1/13/2010, 2 years 9 months ago.

So I freaked. Would 3 months compromise my mortgage?

A couple of months ago, someone from the mortgage company called and asked for my bankruptcy paperwork. She was concerned about the properties not being in my name any more. She didn't mention any timeline. I was confident knewing they were no longer in my name.

So I decided to call my mortgage broker. I told her my concerns. SHe asked me to send her the document from the property appraiser website and she would check with the underwriter.

So now I'm waiting and crying, because now I think it's all ruined. My husband is a little annoyed the mortgage company didn't catch this and I did.

Any advice?

[justbroke]

It really depends on underwriting. They may come back and ask you if you had a justification for filing bankruptcy. If it fits into one of the exceptions, then they will continue to fund the loan. You will just need to wait.

[tobee43]

hopefully underwriting has done their due diligence and it will all go well.

i'm on the same page as this guy.....



How long do I have to wait to buy a house after filing bankruptcy?

by heatherd on May 31, 2012

Over the course of my career as a bankruptcy attorney, I have learned that most of my clients think they will have to wait until the bankruptcy drops off their credit report (10 years) before they will be able to buy a home. Nothing could be further from the truth.

The length of time you will have to wait to purchase a home will vary with economic conditions. A couple of years ago lenders were not writing mortgage loans, even for those with good credit. Lending has started to ease, but the tide could turn at any time. In short, there is no hard and fast rule concerning the length of time between bankruptcy and qualifying for a mortgage. The economic environment plays a huge factor in whether and when you will be able to buy a home.

In addition to the economic conditions, lenders generally rely on three factors to determine whether you qualify for a mortgage: (1) your FICO score; (2) your income; (3) and your ability to come up with a down payment.

YOUR FICO SCORE: Filing bankruptcy will probably improve your FICO score after a year or two. Most of my clients have poor credit scores by the time they decide to file bankruptcy. Their poor FICO scores are generally a result of late payments or high ratio of debts to equity. Your FICO score may drop immediately after you file bankruptcy, but it should bounce back and even improve within a year or two. Just make sure you don’t incur debts you will not be able to pay.

YOUR INCOME: The degree to which your income will factor into your ability to obtain a mortgage depends upon your current earnings and the length of time that your earnings have been at the current level. A lender is more inclined to give you a loan if you have been working at the same job for a while on a steady income. The lender will also consider the relationship of your income to the payments you will have to make on the house you are considering purchasing. As a general rule, you would not be able to get a loan if more than 30% of your income was going to go to the house payment.

YOUR DOWN PAYMENT: The amount you can put down towards the purchase of the house makes a big difference. The higher the percentage of down payment, the more protection for the bank.

To sum up, if you want to buy a house after filing bankruptcy, you can. You may need to wait a year or two until your income and expenses stabilize and until you are able to come up with a down payment, but that is probably a good thing. You certainly do not want to buy more house than you can afford and jeopardize your “fresh start.”

http://www.findbankruptcy.com/how-long-do-i-have-to-wait-to-buy-a-house-after-filing-bankruptcy/

[downwardspiral]

Just heard back from the mortgage broker. The bank approved our loan!!! We close 11/29!

What a relief!!

[ld2366eh]

Congratulations!

[justbroke]

Just heard back from the mortgage broker. The bank approved our loan!!! We close 11/29!

What a relief!!

Ultra congratulations! See... just let them do their job!

[downwardspiral]

Just wanted to follow-up. We closed on November 30th! Everything went great! We love living in our new home.

Ok, stats, I've read these alot over the years, so I'm happy to post:

Mortgage amount: $275,000
Interest Rate: 3.2%
Term: 30 years
Bank - Chase

[Logan]

Just wanted to follow-up. We closed on November 30th! Everything went great! We love living in our new home.

Ok, stats, I've read these alot over the years, so I'm happy to post:

Mortgage amount: $275,000
Interest Rate: 3.2%
Term: 30 years
Bank - Chase

Nice!! Good interest rate to. I'm closing on March 1 and unfortunately rates jumped up over the last week and I'm not close enough to locking. I'm not going to complain if I'm under 4 but .375 on a 416,000 loan is alot of money.
Logan

[metoo]

What broker are you using?

[Logan]

What broker are you using?

Not sure who you're asking but I'm just using a local broker. No one special and since I'm over 5 years out of BK with no foreclosure there are no big hurdles to overcome.

Logan

[downwardspiral]

Not sure who you're asking but I'm just using a local broker. No one special and since I'm over 5 years out of BK with no foreclosure there are no big hurdles to overcome.

Logan

I also used a local broker. I had a few hurdles, as you can see up thread, but our credit was good.

[broke54]

Great news. Hope things are going well.