I know I have to wait 7 years for a bankruptcy to be removed from my credit report but it seems like I've met a lot of people lately that have filed bankruptcy and then turned around and purchased a home right away, am I missing something. If I can buy a home how do I go about getting started?
2007-03-11 17:31:13 · 10 answers · asked by pixieagogo003 1 in Business & Finance ➔ Renting & Real Estate
Yes, but you'll need a subprime loan at a high interest rate. And surely you've seen all the news about all the subprime loans in foreclosure. Maybe it would be best to wait till the housing market stabilizes and your credit improves, or you could wind up hurting your credit even more.
2007-03-15 17:24:11 · answer #1 · answered by SndChaser 5 · 0⤊ 0⤋
You've gotten some good answers by people who seem more knowledgeable than myself about credit and ratings and such. But I thought I'd throw in an idea I haven't seen proffered yet...
Real estate investors will sometimes sell a house under a lease option. In practice it works a lot like your local rent to own store, only with houses. The good news is, since you're purchasing on 'option' you agree on a price well in advance of the actual purchase. (You are not OBLIGATED to purchase it, you just have the 'option') So if property values rise while you are 'renting' you may be purchasing below market value. And if values drop, you're not obligated.
Look in your local newspaper for 'rent to own' ads in real estate. If you're not thrilled with interest rates or other portions of the deals offered by the banks.
My id is listed - @yahoo if you have any further questions.
2007-03-12 02:00:06 · answer #2 · answered by howtoms 3 · 0⤊ 0⤋
Yes you can. First step is to get preapproved. What most lenders look for is no late pays in the most recent 12 months. I just got a client a loan 5 months out of bankruptcy, so it is possible. You will most likely pay a higher rate, but it is doable. If you have had any late pays, a good loan officer will work with you and council you as to what you need to do in the upcoming months to prepare your credit for a home loan. So I would call a good experienced lender first. Then call a real estate agent..with letter in hand!
Good luck!
Vicki Watzlawick
Broker Owner
Exit Platinum Realty
www.vickisdreamhomes.com
2007-03-12 00:52:43 · answer #3 · answered by Anonymous · 0⤊ 2⤋
Yes, you can buy a home provided you have had perfect (underline perfect) payment history since the BK. One late payment on your credit will kill you. Shop your loan with reputable lenders....an experienced Realtor will generally have good contacts for you to shop. They know who will not garbage-fee you to death. A good lender will ADVISE you and not slam you into a loan. The lenders I recommend often send people home to pay off bills, or save a little extra so they can get a better loan. Sometimes it's better to wait, and a real professional will be honest with you.
2007-03-12 00:58:18 · answer #4 · answered by carmensellsthehighdesert 3 · 0⤊ 0⤋
If your credit is improving. you can buy a house. However, note that the sub-prime mortgage market is tightening up considerably in light of the New Century Mortgage fiasco. You may need a co-signer. You will pay at least 2% more for a mortgage now than before but if you have started to re-establish credit, you may be able to do better than that.
2007-03-12 00:53:08 · answer #5 · answered by DLeibowitz 5 · 0⤊ 0⤋
Sure you could. Lenders would try to milk you because of your record, so you'd have to shop really hard to get a decent interest rate. If you have substantial savings, you may use that to make substantial paydown. If you are married and your spouse not involved in the bankcruptcy, then the spouse could apply alone...you could still put both your names in the title. There are other ways you could acquire property... like seller financing, etc. So go ahead research and get the house of your dream.
2007-03-12 00:41:43 · answer #6 · answered by McDreamy 4 · 0⤊ 0⤋
Generally you can get a loan after 12 months following your discharge, barring any other credit problems since.
2007-03-12 00:37:46 · answer #7 · answered by Jeff A 2 · 0⤊ 0⤋
I would start by making inquiries of a reputable (underline reputable) real estate agent.
2007-03-12 00:37:38 · answer #8 · answered by TheHumbleOne 7 · 0⤊ 0⤋
yes you can.
You can apply with one of the many lenders at http://www.igotmymoney.com
nothing better than to apply in the comfort of your own home with no hassles.
2007-03-12 00:38:55 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes you can
2007-03-12 00:35:03 · answer #10 · answered by minty359 6 · 0⤊ 0⤋