I filed for bankruptcy (Chapter 13) two years ago and the house still went into foreclosure. I know that this impacted my credit tremendously, but I am getting over the hurt. What are my chances of purchasing another home?
2007-02-27 03:05:23 · 4 answers · asked by Jos 2 in Business & Finance ➔ Credit
A foreclosure AND a bankruptcy looks terrible on your credit. It used to ring true that a Ch. 13 looked better than a Ch. 7, but today, a bankruptcy is a bankruptcy.
If you're reestablished your credit by paying your bills on time and using credit responsiblty, you should be able to get another home. The interest will be rather high and you might get quite a few flat-out rejections. Stick to your guns and don't let the temptation of buying another house sway your judgment. If someone tries to put you into a ridiculous loan and he's the only one biting, swallow your pride and rent for a while until your credit is back up to par (or at least up to a REPUTABLE lender's standards).
I hope that helps!
2007-02-27 07:27:51 · answer #1 · answered by YSIC 7 · 0⤊ 1⤋
A bankruptcy and/or foreclosure alone will NOT keep you from purchasing a house for 5 years. You may be able to qualify for an FHA loan after 3 years (depending on your credit history since the foreclosure and/or bankruptcy), and some "sub-prime" lenders will give you a loan 1 day out of foreclosure/bankruptcy. The "sub-prime" lender's rates will be high, and a down payment may be required, but you could still purchase a home.
I would recommend that you focus on paying everything on time (especially the bankruptcy, if you're still paying on it) and wait at least 3 years after the foreclosure was completed before trying to purchase another home. That way, you should qualify for a good rate with minimal money down, if any.
2007-02-27 11:24:19 · answer #2 · answered by Mr. Knowitall 3 · 1⤊ 0⤋
Actually pretty good if you are a year removed from the bankruptcy. Check out the free evaluation form at
www.totaldebtsolutionsllc.com
They have a nationwide network of loan officers that can say yes to most people. Good luck,
2007-02-27 13:59:10 · answer #3 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
You will not be qualified for another major loan for the next five years or so.
The up side is that if you get yourself together and prove that you can handle your credit even this can be recovered from.
2007-02-27 11:15:04 · answer #4 · answered by Dr. Watson 2 · 0⤊ 0⤋