Feel Like I Am On A Sinking Ship

[Anonymous]

Unfortunately they do not offer construction loans in the area we are looking for? Oh Well. Back to the drawing board.

[Anonymous]

Things are looking up. Have 3 banks now willing to work with us. Seems like as long as you are out of BK for at least 2 years, you are all set. They do seem to frown upon Chap 7 as opposed to Chap 13. Each one commented on that. Our scores seem good, so now its time to decide which bank to go with and fill out the app. Also have been advised that since BK on file, cannot convert to a fixed rate until 4 years since discharge, so we will have about 8 months to wait after the build is completed. They are offering typically a 5/1 ARM for construction.

[StartingOver10]

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@Anonymous wrote:

Things are looking up. Have 3 banks now willing to work with us. Seems like as long as you are out of BK for at least 2 years, you are all set. They do seem to frown upon Chap 7 as opposed to Chap 13. Each one commented on that. Our scores seem good, so now its time to decide which bank to go with and fill out the app. Also have been advised that since BK on file, cannot convert to a fixed rate until 4 years since discharge, so we will have about 8 months to wait after the build is completed. They are offering typically a 5/1 ARM for construction.

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I have found (I'm a Realtor) that there are few lenders offering construction loans - even if you don't have a Bk. The Bk is a factor, but the overriding factor is the fact that it is a construction loan.  

The best resources for construction loans I have discovered are the small regional lenders in the area where the property is located.  Make sure to get all the info before you apply as construction loans are a specialty product that not many loan officers handle regularly (the exception being those small regional lenders).  

[Anonymous]

Yes, we went that route and only contacted small reputable regional lenders, 3 in the area. All 3 do construction loans with the BK 13 on record. We have selected one and filling the app out over the weekend. Keeping our fingers crossed all goes well.   Happy New Year !!!

[2GreenThumbs]

Hello!  I read your post and it got me thinking.  If you're post Ch. 13 DC, shouldn't it drop of your credit reports fairly soon?  Can you request to have the BK fall off of your reports sooner?  I'm new to credit rebuilding and don't claim to be an expert.  However, I am also post Ch. 13 DC.  We filed 5/2011, were DC 8/2016  and I know that I CANNOT wait for the BK to fall off of my reports in 2018.  Good luck! 

[StartingOver10]

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@2GreenThumbs wrote:

Hello!  I read your post and it got me thinking.  If you're post Ch. 13 DC, shouldn't it drop of your credit reports fairly soon?  Can you request to have the BK fall off of your reports sooner?  I'm new to credit rebuilding and don't claim to be an expert.  However, I am also post Ch. 13 DC.  We filed 5/2011, were DC 8/2016  and I know that I CANNOT wait for the BK to fall off of my reports in 2018.  Good luck! 

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^^^For mortgage purposes, it doesn't matter if the Bk is showing on your credit report or not showing - you have to disclose it in your credit application for the mortgage loan. Google "mortgage application 1003" and you will see that there are a series of questions that you have to answer regarding bankruptcy, foreclosure etc in addition to the financial info that is required.  

You can get a mortgage with a Ch 13 on your credit report You just need to be on your feet when you make application and accurately disclose the Bk. 

[Anonymous]

2 GreenThumbs.   Your BK will fall off 7 years from the date of file. There is no way to get that off before that time, although I wish there was. My BK filed May 2011, therefore will fall off May 2018.   What I am being told is as long as you are out 2 years from discharge, they will consider a home loan. As far as the contruction loan, they want you out of discharge 4 years before offering a fixed rate. Either way, on a Chap 13, the major number seems to be 2 years after discharge for a home loan.

Many of our bad accounts that were inc in BK fell off, however, your credit report will still show a BK was filed.

Wish you the best of luck.

[2GreenThumbs]

Oh, interesting.  I learn something new everytime I log into the forums.  We had our home mortgage before we filed and Ch. 13 was the better option for us.