I filed a chapter 13 in 2004, and it will be paid off in January of 2008. The only collateral that is in the bankruptcy is my new car. Other than that payment, I don't owe or have any other debt. I am an LVN working on my RN, and I pay that as I go so that I won't have any debt when I graduate.
2006-08-13 03:11:09 · 5 answers · asked by Anonymous in Home & Garden ➔ Other - Home & Garden
Your best bet could be what is called a "Land-own-Contract". It is as legal as a regular mortgage. The only difference is instead of the bank owning your mortgage, the seller does. Make sure you get a laywer though to draw up the proper paperwork. 1-2 Years after the BK You willl beable to refinance out of the land-own like it was any other Mortgage. MAKE SURE you pay by check so you can have proof of payment every month. How do I know all of this? I'm a mortgage broker.
edit - Don't try to get a loan through any financial institution. No good one will give you a loan unless you have been atleast 6 months out of BK. If there is a lender out there that will, they will hammer you with the max of 24% Intrest. In a land-own you could probably get around 6-8%
2006-08-13 03:17:15 · answer #1 · answered by †slayer† 2 · 0⤊ 0⤋
Where I live, a bankruptcy is discharged after approx 9 months more or less, depending on the level of debt that was incurred prior to filing.
Friends of ours declared bankruptcy, were discharged 9 months later, after paying off what was ruled as owing, and they began rebuilding almost immediately. The firm they had filed bankruptcy through helped them to establish a car lease, a credit card etc. As they already had a home they weren't in the market to purchase but they were able to obtain the start to rebuild by taking on credit very early. Mind you the rate of interest they were being charged was something like 29% (ouch) but they could start getting the credit rating back into shape.
So as soon as you have the authorization from your Bankruptcy firm if that is who you are going through...to begin rebuilding, do so...start with something like a secured visa/master card etc., interest will be high but charge a few things that you know you can pay off easily...and pay off the credit card bill every month in full. Don't pay off before the bill comes in tho...wait til it does, pay off before the due date and this is part of your credit history record then. Paying off prior to the bill arriving doesn't show on your credit report.
Do the same thing in another area...like a small purchase of something...perhaps furnishing for the home you currently live in...with a payment you know you can make easily every month.
After a year of this, your credit will be improved enough that a lender will be willing to work with you if you choose to buy a home within say 2-5 years time. After 5 years your credit will be excellent again if you keep your payments on time and pay your cards in full.
Good luck and enjoy your career as an RN
2006-08-13 10:26:01 · answer #2 · answered by dustiiart 5 · 0⤊ 0⤋
Actually before you can buy a home you have to have permission from the Chapter 13 trustee. And most decent loan companies won't talk to you without that BK being discharged 2 or more years. The ones that will talk to you will usually have very high interest rates and other fees.
2006-08-16 05:09:57 · answer #3 · answered by rainysnana 4 · 0⤊ 0⤋
Check out a company like Greenleaf that works with people that have bad credit to get them into a house.
2006-08-13 10:17:26 · answer #4 · answered by Cliffette Claven 2 · 0⤊ 0⤋
Rebuild your credit, and make certain you have a large down payment. You can get credit, but it will be expensive interest wise.
2006-08-13 10:19:15 · answer #5 · answered by ceprn 6 · 0⤊ 0⤋