Not many success stories out there?

[pinkpeanut01]

We are still years away from even beginning to think about a new mortgage, but at the same time, we are quite unhappy with where we live (horrible, awful HOA) and like to daydream, which is why I browse the Mortgage After BK board. Is it just me not reading closely enough, or are there not that many success stories out there on getting a new mortgage post-BK? Hopefully people have just moved on from the boards by 3 years post-BK and aren't updating? It's discouraging to feel so trapped.

[LadyInTheRed]

I think it's partly that people have moved on by the time they are elgible for mortgages and partly that the mortgage companies simply are not loaning money as easily as they used to. The days of no money down 80/20 loans that are interest only for 5 or 10 years are over.

[NoMoreCards]

There are happy endings, just not many people are still here. Be creative,.buy land contract or find a cheap house which needs work however is is still good to live in. Save and pacash, it does happen..Some properties.are still priced low with great potential. You can own again soon, if you want it bad enough and are willing to find a way to do it. j

[connie555]

I just got approval for USDA guaranteed loan through GUS! As of March of this year just made the 2 years discharge mark chapter 7.

[LSUTiger32]

The housing market these days is tough. Lenders are in full CYA mode. The process you have to go through to get a loan is painful, I have been trying for nearly two years now. They come up with every excuse possible to make you prove more, show more and kill the loan on a technicality. You need pristine credit since the BK, the title to not one property in your name for over three years (foreclosure), excellent income proof and top notch debt to income ratios. I am sure there are a few success stories out there but I am in very good shape since my BK and I can't even get a re-fi. Understand I already own the home, have made on time payments before, during and after the BK and the re-fi actually lowers my payments by about $400. Still cannot get an approval.

[connie555]

Yes, I have work real hard to get me credit up to par, I have 6 credit cards since BK 3 cap 1, one applied bank Business card (wish I hate) and 2 department store cards. I keep the dept store cards at 0 bal and all 3 cap 1 at 10% bal, Applied at 0% also I have an Wells fargo auto loan .
When they pull my mortgage credit reports was 689, 689, 684

[Logan]

I just closed on a house last month. 370k loan and it was a piece of cake.
I also closed on a HELOC last week which was also a piece of cake. I even needed an exception since I'd been in the property for less than a year and I got it with no problem. I hadn't even made my 1st mortgage payment and I was approved.
Logan

[mavstang73]

I just got approval for USDA guaranteed loan through GUS! As of March of this year just made the 2 years discharge mark chapter 7.

How did you get approved only 2 years after bankruptcy discharge?
It's supposed to be 3 years from discharge.

[connie555]

Update! It's been one week since signing the P.A, I done pay from the home and pest inspection already. I'm getting the feeling that my LO is not being honest, this just my feeling. This Tue he say I was approval through GUS but now he asking for 3 months cash reserves. He telling my realtor everything is good to go and this was the same thing he told me on Monday I feel he going to keep asking for more things up to the last min and the loan will not fund. Well I made an few calls to other USDA lender email them all of my information (income, bank statements, taxes, copy of MTG credit report, credit letter 1003) everything I have they ask for. Two lender said my BK7 has to be 3years discharge with no exceptions (My 8 yr old daughter pass away) I told them I was approve through GUS, one lender say GUS doesn't recognize types of BK's It pass because of my credit score 689. Lender say Chapter 7 is 3 years discharge and Chapter 13 2 years with exceptions . He said my loan will be decline when full package turn in to USDA I would have a closing nightmare.
Okay, 3rd lender said the same things as the very first lender (everything looks great all I need is to pull your credit report) I ask him about the chapter 7 BK rule he said let me check with our underwriters . I didn't want my credit pull again and my score drop because it been pass the 14 days.
Well I got that call back, saying the underwriter thinks he should send the file in and see what happens because of my exception also he is using the mortgage report I sent ( they are USDA direct). So I will know in a few days ya or nay, I still have an few days before I can pull out without losing my EMD and the first lender still say approve (that gut feeling).

Pray for me!!

[Logan]

Update! It's been one week since signing the P.A, I done pay from the home and pest inspection already. I'm getting the feeling that my LO is not being honest, this just my feeling. This Tue he say I was approval through GUS but now he asking for 3 months cash reserves.!!

Do you have 3 months cash reserves? Did you tell him you did when you applied?
Logan

[connie555]

Yes I do! No I never told him this !

[ValleYum]

I just closed on a house last month. 370k loan and it was a piece of cake.
I also closed on a HELOC last week which was also a piece of cake. I even needed an exception since I'd been in the property for less than a year and I got it with no problem. I hadn't even made my 1st mortgage payment and I was approved.
Logan

But in the interest of full disclosure, don't you have a wife with an 800+ credit score who did NOT file bankruptcy when you did? I hope I am remembering correctly and will correct this and apologize if I am wrong.

That can make a HUGE difference IMO when applying for a mortgage as your wife would be considered the mortgagee and you would a basically be a co-signer in the eyes of an underwriter.

[Logan]

But in the interest of full disclosure, don't you have a wife with an 800+ credit score who did NOT file bankruptcy when you did? I hope I am remembering correctly and will correct this and apologize if I am wrong.

That can make a HUGE difference IMO when applying for a mortgage as your wife would be considered the mortgagee and you would a basically be a co-signer in the eyes of an underwriter.

My wife doesn't work so she has no bearing on the 1st mortgage. She helped us qualify for a better rate on the HELOC but I would have been approved without her since I easily met the minimum fico requirements.

[connie555]

Got an approval from USDA

[Logan]

Got an approval from USDA

Congratulations!