We received a Ch. 7 discharge (excluding our current house) on 1-19-06. I recently accepted a job in a town 4 hours away and have been commuting "home" on the weekends while we are trying to sell the current residence.
My plan was to rent an apartment, family and all, until we get past the two year waiting period for mortgages.
I am starting to worry, though, that we won't be able to get a house in a year or two like I was planning, either due to being denied on the application or the rates being too high.
Is this something I should worry about? Is it much more difficult to get a mortgage 2 years after Ch. 7? I need to find out now in case I need to "undo" the situation and get another job in the original locale and take the house off of the market.
Thanks in advance for any advice.
2007-03-23 14:45:50 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes, you can purchase a home - even after a Ch 7 judgement, provided that your accounts have been paid on time. Start with copies of your credit report, then get your score. You will be surprised with what you can do.
Keep in mind, the market has turned to "normal", it is now a buyers market so should be able to get some closing help.
Good Luck!
2007-03-27 03:44:37 · answer #1 · answered by Honeyluv 4 · 0⤊ 0⤋
In the past lenders were more than willing to lend you the money on no document loans since you had a chap 7 bankupcy. Unfortunately due to the president signing the new bankrupcey law in effect to help the new creditors make people pay at least pay the debt back and basically ruin theire credit for the next ten years. Bankruptcey is an event that ruins your credit score therefore you are automatically considered high risk, and they will charge you a higher interest rate in the neighborhood of ten percent plus ona loan. However to just get a house is just at the moment unattaiable most banks are rejecting high risk applicants now, and want you to be able to prove that people can actually make both the taxes and the insurance payments ontime. it also depends on how much house do you plan on buying as well.
2007-03-23 15:06:36 · answer #2 · answered by christain gurl 2 · 0⤊ 0⤋
It might be difficult to find a loan but certainly not impossible. For every subprime lender that turns you down there will be someone willing to finance you at a very high interest rate of course.
We used to accept new home purchase loans for people even if they had a 500 credit score but we are cutting back now. Good luck, you situation sounds hectic.
I wish you the best.
2007-03-23 15:15:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You should be able to get a loan, possibly even before your 2 year mark. Just make sure you are consistent with any and ALL payments and credit-reporting activities!
I would think that you could get an FHA loan in the mid-600's fico score.
If you need a lender to discuss your situation over the phone, let me know and I could put you in touch with one of mine.
Good luck to you, and keep your chin up!... you're on the road to recovery!!
2007-03-23 14:56:24 · answer #4 · answered by Art 4 · 0⤊ 0⤋
It will be a challenge given the crash in the sub-prime market.
Maybe you can arrange an exchange transaction or perhaps a contract purchase or lease/option to buy transaction until your credit gets better.
2007-03-24 03:14:55 · answer #5 · answered by DLeibowitz 5 · 0⤊ 0⤋
No, sorry Check on marketwatch.com and you will see how the Real State has completely crash.
2007-03-23 14:55:07 · answer #6 · answered by ups2005 2 · 0⤊ 1⤋