re Good Idea or bad Idea

[Anonymous]

We are 16 months out of BK discharge. We have been rebuilding from day one. Currently we are renting in a month to month lease. Our rent just went up in October and now the leasing office is stating unless we sign a 12 month our rent will go up again in April. We don't want to sign a 12 month becaue we were hoping in September that we could apply for a mortgage... should we just wait? Rent is 2000 expecting to go up to 2300. 

[lphillips]

Do they not have an option of a shorter lease? Such as six months, since it seems every six months they are wanting to go up on your rent? If there are no other options and $2300 will not put your household in a financial strain, I would hold off on signing a year lease, being that in six months (October again), they are going to go up again and by that time hopefully you will be out...


Sorry for typos on HTC M9

[Anonymous]

No other options a year lease or month to month..

[Anonymous]

I guess when you look at it, it really is a determination on how solid things will be to get approved for a mortgage in the next 12 months. I know you want to be able to get a house, but is that realistic looking at your scores, finances, down payment etc? Would it be better to wait a few more months and be able to take the $3600 you didn't pay in rent and apply it to a downpayment?

Only you know where things stand with you. Good luck in your decision.

[StartingOver10]

When you filed Bk, did you include a mortgage in your Bk?  If not, then you can get a new fannie mae mortgae 2 years from discharge.  However, if you have included a mortgage then you are looking at 4 years from the Bk discharge date for Fannie Mae and 3 years from the date of deed transfer for FHA.  Maybe this info will help you decide if you need to sign a year lease or not.