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12 answers

I'm going to second the need to be wary of people advertising their services here on Answers. Lenders/Brokers who are willing to work with the "poor credit" market are notorious for leaving out important details and coloring problematic situations as rosy. Advertising yourself in a forum that prohibits such solicitation only confirms this behavior. That being said, my answer about bankruptcy:

There are a number of variables that are going to be important to this situation:
1) There are lenders out there who will allow you to refinance even one day out of bankruptcy (meaning after the date it was discharged). However, they will usually only let you do this if you have a very low current mortgage balance compared to the value of your home. A mortgage that is 60% of the value of your home would be on the high side.
2) There are different types of bankruptcy, chapter 7 and chapter 13 being the most common. Both chapters are very difficult for a lender to swallow, but some lenders are slightly more lenient for a chapter 13.
3) Entering bankruptcy has an enormous impact on your credit score, but it doesn't necessarily take it out of the range that a lender can work with. How far your credit score has fallen largely depends on what other accounts were left to late payments or charge offs.
4) Your rate will be high, with a "conforming" or "good credit" lender, or with a "subprime" or "poor credit" lender. Odds are the rate will be one of the highest you've ever seen.
5) I have seen it be a rare situation that someone who has just come out of a bankruptcy need to refinance. The rates are so high (you usually will also see high closing costs) that a lower payment is often impossible - even a year or two out of bankruptcy.

Being about a year out of bankruptcy I recommend you ask around. You will see a lot of people who will tell you they can help (even on this page), and most of those who are excited about talking to you either don't know how difficult this process is, or they are going to take you for a ride in a salvage titled Pinto painted to look like a Ferrari. If you have a friend you trust in the business start there. Trust what they say, even if it doesn't give you options today. If all the factors (credit up, mortgage balance down, home value up, etc.) are in your favor, you could end up with a loan that will help you out. However, you are likely looking at a situation that will have you tightening your belt for another year or two. At two years from bankruptcy you should be able to find a decent rate and access to more of the value of your home. If you continue to take care of your credit, you should find yourself back in a "good credit" situation after being three years away.

My best wishes to you.

2007-05-01 08:02:44 · answer #1 · answered by gaamalii01 2 · 0 0

Ok, I've seen lots of different answers and opinions on your question. Some of the answers partially true and some just completely off base. The real question is this: Exactly when did you file the BK and what type did you file (Chapter 7 or Chapter 13)? If you filed a Chapter 7 then you will have to wait 4 years from discharge date to obtain FNMA financing and receive a good interest rate. Though it is possible to obtain a FNMA loan within 3 years of discharge date with compensating factors (down payment, good DTI, etc...). FHA financing is available to you 3 years after discharge date on a Chapter 7 BK and also offers very good rates. Now if you filed a Chapter 13 BK you are actually eligible for an FHA loan 12 months after file date (not discharge) provided that you have a satisfactory 12 month pay history on your BK, and permission from your trustee to incur new debt. This type of loan will give you the best rates/terms and timeframes from file date provided that you filed a Chapter 13.

I highly recommend that you stay away from sub-prime financing and these day out of discharge loans due to the almost predatory costs involved with this type of financing. You should contact a reputable mortgage lender to discuss your unique situation in depth and see what is available to you. Good Luck and know that a BK is not the end of your credit life, it is a new beginning!

2007-05-01 13:50:19 · answer #2 · answered by Brad V 1 · 0 0

Watch out for sharks on Answers. It is against the rules to sell goods or services here.

How much money have you saved since the divorce? What are you earning? What are your current expenses?

If your answer to each of the above is, "Not much," "Not much," and "Too much," then your chances are pretty poor.
You need to rebuild your credit for a couple of years at least. The more you can save for a down-payment, the better.

Avoid the subprime mortgage lenders. The papers are full of foreclosure notices for poor people who jumped at no-down-payment low-interest-rate mortgages that the fine print said would only last 2 years. They're all in foreclosure because the payments doubled and tripled - and if you missed a payment or were late, it happened even faster.

2007-05-01 06:16:04 · answer #3 · answered by thylawyer 7 · 0 0

with the sub prime lending market in dissaray and national real estate trend of little to negativie appreciation, it will most likely be much more difficult than it may have been even 6 months earlier.

Lending companies are tightening up their underwriting standards thus pushing underqualified applicants to companies that will most likely offer a product that is less than advantageous for the borrower.

If you can't get a loan at a competive rate especially in todays real estate market, (contrary to popular belief) you may be better off renting and building your credit for a year or two and purchasing a house when the market has stabalized and you are eligible for more competive interest rates.

2007-05-01 07:05:27 · answer #4 · answered by Anonymous · 0 0

The bankruptcy will keep you from getting a loan at a descent rate for quite some time. I would start by making sure that you responsibly use your credit for the next couple of years and then talk to a bank about a home loan.

2007-05-01 06:05:40 · answer #5 · answered by Anonymous · 0 0

Well being a divorced mum with four kids is not easy to find true love again coz the next guy must be able to accept your four kids and the kids must be able to accept the guy too. it will not be an easy task to fulfill. Furthermore after your failure in this marriage you may developed some phobia in relationship and that could also one of the factors that affect your future relationship too. Nevertheless, you have to put down your failure in your marriage before you start a new relationship otherwise the relationship will not work out well for you.

2016-05-18 00:48:22 · answer #6 · answered by Anonymous · 0 0

There are places that will do a mortgage 1 day out of Bankruptcy, but it'll cost you. Your best bet is to wait until 24 months after the discharge date of the Chap. 7. Then you can get a Fannie product.

2007-05-01 06:52:37 · answer #7 · answered by togashiyokuni2001 6 · 0 0

You will not be eligible for mortgage financing until your bankruptcy has been closed for 2 years. At that point, as long as you have reestablished and maintained excellent credit, you will be eligible for FHA financing. Fannie make guidelines speficy 4 years

2007-05-01 06:12:14 · answer #8 · answered by Anonymous · 0 0

You can get a conventional mortgage. Your rate may be a little higher depending on your current credit score. Talk to a qualified mortgage broker in your area.

2007-05-01 06:16:09 · answer #9 · answered by Anonymous · 0 0

depending on state and the mortage co. it needs to be season for 3 or 4 years ,if in california , i can answer any question you have

2007-05-01 06:11:18 · answer #10 · answered by mrseahorse1 2 · 0 1

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