Considering a new mortgage and could use some qualified input

[Anonymous]

We filed a Chapter 7 on 12-17-2007.  We have re-established and have an auto loan on a $52k truck we bought last March, we owe right at $22k on it and we have 2 credit cards that I pay off each month.  They have $750 & $1000 limits and I usually put a few hundred on them each month.  Credit has been perfect since the BK. 

My current scores as of 2-8-2010 are 644-630-644 and are going up each month.  My wife's scores are 644-603-636 (not sure why EQ has her so low, they are showing 8 accounts listed as potentially negative).  These were medical accounts included in BK and they state that they were included in the BK.

So we are really wanting to buy as there are some short sale and foreclosures out there of great interest and at good prices.  Should we attempt to pursue an FHA or USDA loan?  My income is good, close to $100k per year and I have been on my job several years.  My wife has part time income of about $25-30k per year with long term history.  We have been in a lease/option agreement on a property where we put $40k down and have been paying $2700 per month.  This guy hasn't paid the bank (BoA) in 18 months and has filed a chapter 7.  Yep, he has scammed us for about $60k.  We've thought about riding this out and trying to work with the bank on this property but it's been frustrating and it's been tough.  Per our attorney, we haven't paid anything in several months and there is a tenant protection act that could protect us from just getting booted.

We've worked hard on re-establishing our credit to be able to own our home and just wondering if we should move forward or be patient and wait.

Thanks!

Davisix

[BrianB_The_Loan_Professor]

Welcome to the boards

First your situation stinks - I would seek legal counsel on your options

As far as a loan - you would have to go FHA as USDA has household income limits and there are very few places in the country where you could make as much as you do and still qualify.

You should be fine with FHA you have good credit and low debt ratios

You also have the required 2 years post BK

I cant suggest what to do with your current L/O that is a mess

[Anonymous]

Brian,

Thanks!  We were thinking the FHA or USDA would be the way to go but have heard they are a real pain to do. 

This mess has beenn a challenge.  We've had a couple attorneys involved and really if we waited it all out it could work well as we've been told that under this protecting tenants at foreclosure act of 2009 will protect us and force either the bank (BoA) or buyer if property sells at a foreclosure sale to honor our contract as it is a legal and binding contract and was drawn up by attorneys.  But who knows.  The atty wanted $5k to fight this in the court with no guarantee and I've just put out too much to spend another dime.  The other side is we can push a fraud suit and with him being a licensed real estate  broker in SC and FL we could push to have his license revoked.  We've been told that there are alot of folks who have become victims to similar situations.

I appreciate your time!

Shane

[ArmyStrong]

Wow. Sorry to hear about your unfortunate "mess". I had a relative in SC who went through the same thing and the guy went to FL. He and a brother of his had the same scam going. I wonder if it's the same criminals? My relative wound up leaving the house as it went into foreclosure. They were blessed in having another relative bid on it and win it back for them. (for whatever reason, the foreclosure bank was giving them a hard time to try and keep the property) So they are out of thousands, but are back in "their" house.