08-20-2009 02:35 PM
I had a CH 7 Bankruptcy that was discharged about a year ago. Since then, I have not had any late payments or collection. My balance on my revolving account is $0.00 of $7,000+. I have a 23K student loan and a 72K income. My BK was filed due to six months of unemployment and a medical bill that was passed on to me from a relative I was a guidance of. I am currently in the military (Iraq vet). Current credit scores are 638, 658, 602. Where can I get a mortgage in the State of Indiana for a 200K new home less than two years after a BK? I have looked everywhere and I keep getting turn down because of the BK. Please help.
08-20-2009 02:40 PM
most do not understand that fha will do it after one yr with exception to the 2yr rule.
must be proven as beyond your control.
08-20-2009 02:43 PM
08-20-2009 03:08 PM
if you could prove that the unemployment didnt cause it directly and that the medical did.... then maybe.
it would be a manual underwrite with a strong letter explaining circumstances around family member.
usda might do it.
08-21-2009 06:35 AM
08-21-2009 07:18 AM
For USDA you have to live in a somehwhat rural area and your household income has to fall within thier guidelines. There is not a limit on the purchase price but it does have to be a modest house, so it would probably depend on your area if 200k is modest or not.
As for USDA and ch7 less than 2 years I think its a crap shoot myself. I have seen a couple of people get approved with less then 2 years but just as many that were not approved. We talked to a couple of brokers at less then 2 years to see about getting approved for USDA. We were told we would have a better shot at getting approved with FHA (we did fall into the exception of less then 2 years with an accident of the primary wage earner, unable to work for almost a year with zero income and major medical bills). One broker talked with the USDA underwriter and was told we would not be approved and another broker told us we had a 50/50 shot with usda, but did'nt think we'd have any problems with FHA. Both told us we shold be fine after the 2 year mark with USDA. So we waited and are at almost 3 years now and are getting ready to apply.
08-21-2009 01:56 PM
08-22-2009 08:07 PM
Do you think there could be extreme circumstances when it comes to a foreclosure? i foreclosed last june, i used to work for a title co and it slowed down and i was laid off. i started working odd jobs to keep the lights on and when i couldnt handle it I put the house up for sale. Now my realtor assured me it would sell as a short sale w/in 90 days. she lied, didnt come to show the house (just handed out keys) she brought a parade of families through on moving day. She didnt hand in a cash offer or report any verbal offers to the bank. To top it off she left the firm w/o notifying me or having me sign off on any paperwork. One day I got papers about an auction to be held on the courtsteps and thats when I found out she was no longer with REMAX for the last two months...news to me.
Am I out of luck for the next 18 months or do I have a chance to bite into the market with an FHA loan. If I didnt believe in karma I would have had her ass fired...lol!!