Getting ready to refinance land contract

[Miknan]

Ch 7 discharge 11-2010, home sold at sheriffs sale 5-2011

Wife's credit 665, mine 696. Our only debt is a student loan and the house we bought on land contract. My wife is on disability (her sudden sickness was the start of all this. We had good credit before the illness and since the bk) and I make around $65k a year and have a good work history.

We bought a new house from a builder on a 6 yr land contract at 7% interest. We cashed out my wife's 401k to give him a substantial down payment. I don't want to discuss if this was a good move or not. Anyway, I was going to wait until the 3 year mark but read on here about the extenuating circumstances so I called a bank this builder does business with. The banker hadn't heard about that but said he'd look into it. I asked him if I waited a few more months I'd be at the 3 year mark and what would be my chances? His answer, "slim". That certainly doesn't sound promising. Would I be better off waiting until the three year mark then going on Lending Tree or something? Thx.

[LadyInTheRed]

As with any credit following BK and/or foreclosure, the longer you wait, the better your chances are.

If you are going to try other lenders now, I wouldn't go through Lending Tree or any online service where a computer is evaluating your application. I'd try to find an experienced local mortgage broker who has experience finding loans for borrowers who have filed BK followed by foreclosure.

[justbroke]

A broker is probably the best course, as LITR wrote. There are lenders out there and typically, with post bankruptcy mortgage loans, the criterion vary wildly and lenders make up their own rules. (Okay, they don't make them up, but they are allowed to apply additional criteria for FHA loans!)

[Miknan]

Thanks for the responses. I haven't heard back from that lender yet but I'm assuming that will be a no go I'll wait until the three year mark then contact a local broker. Any advise how to fin far good one? I'll keep trying until the five year mark then put the house up for sale I guess. I will sleep a whole lot better when/if I ever get this refinanced.