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Getting a Home Loan 1 yr after Bankruptcy

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DallasLoanGuy
Super Contributor

Re: Getting a Home Loan 1 yr after Bankruptcy


@Anonymous wrote:

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!!


 

this is not extreme circumstances to fha

 

you must prove circumstances beyond your control. like hurt on job and off of work for an extended time as a result. something not likely to re-occur.

 

they want to see financial stability. if you got laid off, that isnt good enough to them.

 

Message Edited by DallasLoanGuy on 08-22-2009 10:19 PM
Retired Lender
Message 11 of 18
sgtm7
Established Member

Re: Getting a Home Loan 1 yr after Bankruptcy

Not trying to hijack the thread, but I just had my Chapter 13 discharged in May of this year.  I plan to buy a new home in another location next year around July.  I plan to have 20 to 30% as a downpayment when I buy.  My only bill is a mortgage on my current home, which will become a rental once I close on the new house.  Between my salary and my Army retirement, I clear about 145K a year, and plan on buying a home that cost no more than 145K.  Will the fact that it was a Chapter 13, and I will have at least 20% for a downpayment make a difference for FHA, or would I be better off going conventional?  Or..... would I be better off paying off the current home, which would mean I would have no cash available for the downpayment on the new house, but would free me up to get a VA loan on the new house (current home is VA)?

Message 12 of 18
sgtm7
Established Member

Re: Getting a Home Loan 1 yr after Bankruptcy

Never mind.  I found the answer to my question right after I posted.  Qualifying after Chapter 13 bankruptcy is different.  In fact, you can qualify for FHA while you are still in a Chapter 13, as long as you have made at least 12 consecutive on time Chapter 13 payments.  Since I was in a 48 month plan, I have 48 months of on time payments.
Message 13 of 18
Anonymous
Not applicable

Re: Getting a Home Loan 1 yr after Bankruptcy

That is true onthe ch 13, but beware.  There is a big difference when purchaisng a 2nd property.  The UW are alot more skeptical.  Do you have large equity in your primary home right now?  Where are your FICO scores at?
Message 14 of 18
sgtm7
Established Member

Re: Getting a Home Loan 1 yr after Bankruptcy


@Anonymous wrote:
That is true onthe ch 13, but beware.  There is a big difference when purchaisng a 2nd property.  The UW are alot more skeptical.  Do you have large equity in your primary home right now?  Where are your FICO scores at?

LOL.  Yes, I found that info right after I made my second post.  There does seem to be exceptions if it is for "hardship" reasons, and/or you are relocating.   I might be able to swing it, because I will be relocating to a different city.  I also have at least 60K in equity by then (45K owed, home worth about 115K).  My credit scores as of 9 July were 608 for TU, 682 for EQ, and 675 for Experian, but the Experian score was a "plus" score, so I don't know what the FICO is.  I am guessing that my midscore will be at least 620 by next year.  

 

If all else fails, the money I will have saved as a down payment (about 45K), could be used to pay off the VA loan on my current home, then I could get VA 100% financing on another home in the new location.  I would just have preferred to use the saved money as a downpayment and to let renters pay the mortgage on my first home, until I once again saved up enough money to pay it off (about 3 years from now).

Message 15 of 18
kfordanish
New Visitor

Re: Getting a Home Loan 1 yr after Bankruptcy

Hi I have a question that I'm not sure about.  Lost my job about 3 years ago was unemployed for about 6 months and then got a great job.  I filed for bankruptcy and it was discharged dec. 2011.  jan of 2012 and march or 2012 got 2 new loans for vehicles.  I am now trying to attempt to get a mortgage for a new home and I don't know who or where to turn for this.  I have tried a broker and they seem to just not want to do the work and said just to wait until Jan 2014 to apply for a loan.  I know that some people qualify before I have had all on time payments and kept my mortgage current throughout the entire time I've had it including the lack of employment period.  Is there anywhere that I could turn to get qualified? I live in northeast Indiana if that helps anyone.  I would appreciate any information that anyone is willing to give.  Thanks

Message 16 of 18
Amythyst
Contributor

Re: Getting a Home Loan 1 yr after Bankruptcy

Probably would have been better to start your own thread... but anyhoo....

 

The loan officer is correct, you would need to wait... for an FHA loan, you would need to wait 2 years since bankruptcy and 3 years post foreclosure date.  If your current home was included in your bankruptcy you will probably find it hard to get another loan with your current home not having gone through foreclosure.  There are rumors that lenders will be changing this requirement as there are so many people with included homes from bankruptcy now trying to get a new mortgage but I'm not sure how many lenders will be lienent on that.  To get a loan before the 2 year discharge date is quite rare and is usually only allowed if the bankruptcy was due to extremely unforseen circumstances like death or disability.  If its VA or conventional, then the timing with those is different than FHA.

Message 17 of 18
sgtm7
Established Member

Re: Getting a Home Loan 1 yr after Bankruptcy

Wow, this is an old thread!  Funny looking at things I was planning to do 4 years ago.   Since then I have paid my home off and  rent it out for more than I ever paid in mortgage payments.  I then moved overseas and the rental income from my house pays for rent, utilities and a maid.   I then have my pension for food and entertainment.  No thoughts about buying another property or living in the states.   Brings to mind a saying:   "Want to make God laugh?  Tell him YOUR plans."

 

Funny thing, is that my bankruptcy is no longer on my credit report, and my FICO scores are around 800.  That is the highest they have EVER been, yet I have NO intention of ever making payments on anything again.  LOL.

Message 18 of 18
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