We have never been late on our home payment. NEVER. Not even before we filed. Come december, when we are discharged, we will have only my student loans as bills- that's it. Nothing else. We both have current steady jobs, middle ranking incomes (96k combind). What is the likely hood we will be able to get a mortgage? We only owe 68K on our current home, its vauled at 180K, so we will have a huge down payment. Will banks even look at us?
2007-06-18 08:12:25 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
After reading Fred's response...I meant will they look at us come the first of the year (we are discharged in December)? Also, correction, the only bills would be our mortage and my student loans. thanks!
2007-06-18 08:18:19 · update #1
There will definitely be lenders interested in doing business with you, as with the new fed regulations you can not file for bankruptcy again for several years ( don't recall how many) however you won't be doing business with Chase, Bof A, etc etc. You'll need to employ a loan broker and have him shop for you. IndyMac is huge in this niche. Again, this is after you have been completely discharged, not a minute prior.
2007-06-18 10:22:24 · answer #1 · answered by Donald C 2 · 0⤊ 0⤋
Nope. Sorry. Most reputable banks will want to see that a bankruptcy has been discharged for at least two years with reestablished credit. Sounds like you have some accounts that you can still get a good payment history with if you start now and NEVER default. Not even a 30-day late hiccup.
Bankruptcy is a long-term decision. It's a long process and it takes a long time to recover from it: credit-wise, financially, emotionally, etc. Chapter 13 is not a quick fix for ANYthing. The lawyer should have explained that to you.
If a mortgage lender does look at you this soon after the bankruptcy, they will most likely have astronomical interest rates...you don't want that and it's not worth it.
Take time to rebuild your credit. Then try in a couple years.
2007-06-18 15:24:40 · answer #2 · answered by YSIC 7 · 0⤊ 0⤋
Not to continue the negative answers, but I'd have to say No as well. There are sub-prime lenders that will look at a BK that has just come out of discharge. The sub-prime market has collapsed on itself so most of the companies that are still around are tightening up their guidelines since there have been so many foreclosures in the last year. You might get lucky and find one that still does loans if you are fresh out of a BK but if it hasn't even been discharged yet, you can probably forget it.
Sorry and wish you luck.
2007-06-18 15:33:39 · answer #3 · answered by logic_150 2 · 0⤊ 0⤋
I work for a Lender that also brokers deals out to over 200 lenders, the soonest that I have seen a lender look at someone with BK is 24 months after the discharge. Sorry to be a downer, but I don't know everything so you can try to google it, it's just unlikely.
2007-06-18 15:23:04 · answer #4 · answered by romedoggy dog r 1 · 1⤊ 0⤋
yes. there are lenders that are willing to help you with your current financial situation. I work for a lender and we do one day out of BK. we also broker out to other banks. it is called " SUBPRIME ". we look at BK's all the time. your chapter 13's payoff needs to be paid in order to refi. if you are trying to purchase, 10-20% down payment. it all depends on what you are trying to accomplish. please email me as i can further assist you.
2007-06-18 15:21:29 · answer #5 · answered by chinkiechunkie 1 · 0⤊ 0⤋
No, the Chapter 13 needs to be all done and showing done in your credit report. Don't forget to add the 100 word explanation of what happened in your credit report. It helps. Good luck.
2007-06-18 15:16:29 · answer #6 · answered by Fred 4 · 0⤊ 0⤋