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Purchasing a auto or home after a 7 BK

Established Member

Purchasing a auto or home after a 7 BK

Hello.  How soon after a chapter 7 can a auto be purchased?  Does anyone have experience here with this?
 
Thank you!
 
Tonya
Message 1 of 9
8 REPLIES
New Member

Re: Purchasing a auto or home after a 7 BK

I purchased my vehicle one week after I filed. I used Roadloans.com. and got a blank check in the mail to purhase my car in 2 days. 
Message 2 of 9
New Member

Re: Purchasing a auto or home after a 7 BK

Hey Tonya - I filed BK in 2001. I was able to get a Roadloans car loan in 2004, though at the time they were the only people willing to give me a loan. I know Capital One now seems pretty easy to get a car loan from as well. Now, I did not try for a loan from 2001 until 2004 so I do not know how easy it would have been prior.
 
I applied for mortgage loans twice since 2001 and have never had an problem getting approved - now, this is not to say that the final underwriting would have gone through as I did not follow through with the mortgage process, but I was approved.
 
Hope this helps a little.
Message 3 of 9
New Visitor

Re: Purchasing a auto or home after a 7 BK

I bought a new Benz 2 year after BK through New South Federal Savings Bank at a great rate and a house 1 year after BK
Message 4 of 9
Established Member

Re: Purchasing a auto or home after a 7 BK

Thank you all so much for all your help.  That is sice nice to share your experiences.
 
I followed some guidelines noted on this site and pulled my and my hubby's report via annualcreditreport.com.  His scores are 514, 537, and 587.  I then disputed all items stating that they are included in the bk. 
 
I will look into capital one and roadloans.  With the mortgage crisis I wonder how challenging it'll be to ourchase a home.  Our current home is now in foreclosure.  We bought it 2 years ago for 672k.  A home, the same model, was just auctioned for 199.  So, on that end it was a great idea to discharge the home in the 7.  After the foreclosure I hope we can rent the house for at least 6 months.  I want to move to Houston and I hope I can buy something after 1 year.
 
Also, when looking at seasoning...should you look at the date a bk was filed or the date the bk was discharged?
 
Thank you all again for your help.
 
TonyaSmiley Happy
 
 
 
Message 5 of 9
Established Contributor

Re: Purchasing a auto or home after a 7 BK

However there is a severe credit crunch right now and loan standards are tightening up big time.  I am not so sure that the lenders will be quick to extend credit right now, even to prime borrowers.  You will probably need a huge downpayment and will pay high interest.   You might want to look into a credit union or where you bank.  Perhaps with down payment and co signer you might be able to get a vehicle.  Right now, everyone is hunkering down.  
 
FHA requires a 2 year after discharge waiting period.  conventional funding is 4 years, stellar credit after BK.  With a foreclosure, FHA requires 3 year waiting period.  The mortgage crisis doesn't look to improve until 2009.  I would be planning renting for a while longer.


Message Edited by granny031350 on 02-02-2008 02:28 PM
Message 6 of 9
New Member

Re: Purchasing a auto or home after a 7 BK

My chapter 7 will be discharged in April/may my question is once I get the discharge papers can I immediately go and get a car?My current fico is 553 , after the discharge I'm sure it will drop. What was your fico when you got approved form Roadloans?
Message 7 of 9
Established Contributor

Re: Purchasing a auto or home after a 7 BK

Denise - have you cleaned up your credit reports with all 3?   If not, I doubt they are all accurate.  You should dispute your negative items - any of which are outdated, inaccurate or unverifiable.   You want to minimize any baddies you have out there, and with that and a resumption of good on time payment habits, your scores will rise.
Message 8 of 9
Highlighted
New Member

Re: Purchasing a auto or home after a 7 BK

I filed Chap 7 in July 07 It was discharged in 10/07. I reaffirmed two cars, a house, a second mortgage. All CC's were included in BK except a store card that had a zero balance. But it has no available credit showing now. Will these reaffirmed accounts help my credit scores? I want to purchase a house do I need to open new credit? Not sure where to go from here. I made sure all items on all three credit reports show included in BK. I go rid of duplicate accts. Anything else I need to do?
Message 9 of 9