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Established Member
Tropikal
Posts: 16
Registered: ‎12-06-2011
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Re: Mortgage after Bankruptcy

Thanks StartingOver10 for your information very helpful.

New Contributor
Lil_Me
Posts: 62
Registered: ‎06-30-2011
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Re: Mortgage after Bankruptcy

Twizzle,

 

What bank did you use? Did you go to your personal bank that you bank with or you went through a mortgage broker?

 

 



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Pinscher
Posts: 2
Registered: ‎02-10-2013
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Re: Mortgage after Bankruptcy

I discharged chapter 7 in 2010. I was able to reaffirm my auto loan, and I was able to keep my house as long as I still paid every month as usual. The auto loan applied to my credit score & report, but the mortgage no longer did. The bankruptcy attorney I had said she didn't do any kind of reaffirmation for the house, like for the car, in case I couldn't keep up with payments. In that case I could either just walk away from the property or sell it. I'm needing a house with more space soon, and I'm wondering how possible it is to get a new mortgage?
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
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Re: Mortgage after Bankruptcy


Pinscher wrote:
I discharged chapter 7 in 2010. I was able to reaffirm my auto loan, and I was able to keep my house as long as I still paid every month as usual. The auto loan applied to my credit score & report, but the mortgage no longer did. The bankruptcy attorney I had said she didn't do any kind of reaffirmation for the house, like for the car, in case I couldn't keep up with payments. In that case I could either just walk away from the property or sell it. I'm needing a house with more space soon, and I'm wondering how possible it is to get a new mortgage?

What are you planning to do with your house you are in presently?

Are you selling?

 

Are you walking away?

 

Are you keeping and purchasing a new larger home?

 

How are your present scores?

 

How is your income?

 

What debts do you currently have?

 

Are you self employed or W2 employee?

Good Luck
May all your dreams and wishes become a reality!
New Visitor
Pinscher
Posts: 2
Registered: ‎02-10-2013
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Re: Mortgage after Bankruptcy

I plan to sell it, hopefully. I might get about 40k out of it to put towards a new house, but the houses here start at 250k so it's still a lot to get a mortgage for. The only debts I have are an auto loan and credit card, but it's still a high debt to income ratio. I work for a large hospital and I've been the there for almost 10 years. I make about 43k a year. My current credit score is about 650.
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Mortgage after Bankruptcy

I filed Chapter 7 in 2003 and a Chapter 13 in 2005. Chapter 13 was paid off successfully and discharged in 2011. The Chapter 13 deleted in Oct of last year and the Chapter 7 will delete Aug 2013. I just closed on our second home 2/6/13. We lost our first home in foreclosure in 2007.

My credit improved very slowly over a 7 year timeframe as the old derrogatories fell off. I qualified with a mid fico of 703.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

Re: Mortgage after Bankruptcy


Pinscher wrote:
I plan to sell it, hopefully. I might get about 40k out of it to put towards a new house, but the houses here start at 250k so it's still a lot to get a mortgage for. The only debts I have are an auto loan and credit card, but it's still a high debt to income ratio. I work for a large hospital and I've been the there for almost 10 years. I make about 43k a year. My current credit score is about 650.

Just my opinion..

At 43K a year annual salary, purchasing a home at 250K plus is not realistic, and most likely would not be qualifiable. But possibly with a larger down payment it is possible. Unless you have another person who will help out with the mortgage on the loan, that would also increase your chances, if they are also qualifiable.

 

You mention your DTI is high, so that will also play a big part in how much home you can afford.

 

Your score is qualifiable at 650 mid score if it is a FICO score.

 

Your employment history is good.

 

I would do a comparison on what the homes are selling for over the last 6 months, homes comparable to yours. Or just contact a realtor and they will do the comparables and give you a selling price according to their professional opinion.

 

Once you have an idea, now you need an idea how long it may take to sell, so check how long homes are staying listed in your area, or once again ask your realtor.

 

After you have the basic information, you can see how much equity you can obtain from the sale of your home.

 

You can use the equity to help with down payments, pay down debts, closing cost, etc etc... or just save it if you have the funds to purchase another home.

 

Being realistic... 250K - 40K down payment from equity of sale = 210K @ 3.625% (low rate for conventional, which your scores may not qualify for) for 30 years = 957.71... Plus Insurance, and Taxes, which would put you right around 45% of your take home pay.

 

If you have to pay PMI or MIP you will be at or over 50% of your take home pay and that does not include any other debts you have.

 

Something you need to be well aware of, so you do not find yourself in a tight position struggling month to month.

 

 

Good Luck
May all your dreams and wishes become a reality!
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Mortgage after Bankruptcy

+1, you would need to come up with $50,000 down for a $250K home and even after that much down, your DTI is maxed out. With today's interest rates, the max you can afford is 4x your income.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Mortgage after Bankruptcy

The max you qualify for (assuming low debt) is about $172,000. Anything above that, you will have to pay for upfront through your downpayment.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
New Visitor
gracin13
Posts: 2
Registered: ‎02-24-2013
0

Re: Mortgage after Bankruptcy

Hi I am new here and I have the same type of question. I think i might have messed up the posts though. sorry.

My husband and I are trying to purchase a home. we are 20 months out of chapter 7. (BK was due to a credit card repayment scam). Our credit scores are now good (650's), we have $6500 gross monthly income, and long term employment history (10+ years each at the same job). We have found our dream home but the real estate agent and mortgage broker say that we have no choice but to wait until June for the preapproval. Is this true? I keep reading that there are ways around that but not really getting any good answers. any help would be appreciated! thank you!!


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