How soon after buying a house is too soon to file? (when keeping the house)

[Stilltheone]

As I stated before, I'm not late on anything, so my credit is not shot. This mortgage/taxes/insurance payment fits in with the highest dti program out there. It's tight but it's approvable, according to the mortgage broker I spoke with.

And no, they don't include "all my bills". They include debts, but they don't include anything like utilities.

What debt to income ratio do you qualify with? Lenders are REALLY tightening their lending practices.

Regardless, if your payment fits in the highest DTI ratio out there, why would you be filing for bankruptcy?

[AngelinaCatHub]

Under the circumstance you mentioned Poppie, I will have to agree with Keepmine. As long as you can explain that, and it would probably be brought up on the 341. After that, I doubt it would be addressed again. I'm just a bit 'gunshy' as anything that could did go wrong with my equation. My Trustee has been wonderful and the UST has never asked a question......yet. I can't seem to communicate with my lawyer and she is a bit eccentric as well as intimidating. I don't even have a clue as to when or if I shall be discharged. Our 341 was Feb 7. 'Hub

[Poppie]

Regardless, if your payment fits in the highest DTI ratio out there, why would you be filing for bankruptcy?

Not everyone who files bankruptcy is destitute, but even those who have not hit rock bottom yet may still need debt relief. I have about $65k in medical and credit card debt that I will never be able to pay off since I'm only able to pay minimums, nor will I ever be able to build any savings at all as I continue to pay the minimum payments on this debt.

I will have to have a housing payment no matter what - whether it's rent or a mortgage. It's not like I can give up a housing payment and put that money towards my debt. I don't live extravagantly at all. All of my money goes towards bills and the bare necessities. I clip coupons. I don't travel. I haven't bought clothes in about a year. I drive a 7 year old car. I very rarely eat out. Gas prices and grocery prices are getting higher and higher and so things are getting tighter and tighter. I see the writing on the wall. It's only a matter of time before it hits the fan for me - whether I'm renting or have a mortgage.

I'm sorry if it offends you that I realized a BK was probably in my future before things got bad. I'm not one to live in denial for very long. I realize that most people who file BK probably don't even consider it until they are so late on everything that they are being sued or are close to being sued. I had some financial difficulties when I was very young (not a BK though) and I was in denial about them then. It was a horrible way to live. So I'm very conscientious about it now.

I had not planned on buying a house right now, and may still not buy a house right now. I just happened to hear about this new development offering the down payment and closing costs and reduced prices and thought I'd look into it. When I calculated that the monthly cost of owning this home was roughly the same as I pay in rent, I thought I'd post here to see what people thought about buying a few months before filing. The house, btw, only costs about $100k. It's a very modest home.

[Stilltheone]

Good grief, you didn't "offend" me..things just didn't add up for me.

On one hand, you're saying that you're stretched to the limit each month and the next you're saying that you'd qualify in THIS STRICT LENDING MARKET for a mortgage.

Generally speaking, people that are stretched to the limit each month DO NOT meet the lending debt to income ratio requirements. If you DO meet the debt to income ratio requirements, you wouldn't be stretched to the limit each month. Which is it?

You're absolutely right, you don't have to be destitute, but generally your debt to income ratio is probably greater than 50% if you're filing bankruptcy. JMHO.

[Poppie]

Good grief, you didn't "offend" me..things just didn't add up for me.

On one hand, you're saying that you're stretched to the limit each month and the next you're saying that you'd qualify in THIS STRICT LENDING MARKET for a mortgage.

Generally speaking, people that are stretched to the limit each month DO NOT meet the lending debt to income ratio requirements. If you DO meet the debt to income ratio requirements, you wouldn't be stretched to the limit each month. Which is it?

You're absolutely right, you don't have to be destitute, but generally your debt to income ratio is probably greater than 50% if you're filing bankruptcy. JMHO.

Sheesh. You do know there are expenses in life that are not considered DEBTS, right? DTI doesn't include things like medical expenses, groceries, gas, insurance, childcare, clothing, entertainment, utilities, etc. I can be stretched to the limit without being over the DTI requirements.

Is that simple enough for you?