I was denied a loan and it has been 5 years since the chapter 13 was discharged. Should I try again?

koolhondacivic · Joined: 10 Apr 2009 Posts: 2 2.16 Dollars($)

I was denied a loan and it has been 5 years since the chapter 13 was discharged. Should I try again?...I filed a Chapter 13 in May 2004 and it was discharged so I was pleased. For the first time I have requested a loan from my bank and they denied me for $25000 to pay off my home. I have been paying my Father for the past 8 years since I did not dare request a loan after the Chapter 13. They said 10 years would have to pass before they would approve a loan for me. I know times are tough but is this what I should expect from all banks? Scared to try to get approval from another source at this time.

Posted: Fri Apr 10, 2009 10:29 am Post subject:

civic, you didn't mention if you've made any effort to reestablish your credit beyond the bankruptcy. if you have not done so, that may have influenced the bank to deny your application. your having been out of bankruptcy for almost 5 years should have afforded you the opportunity to refinance - the 10 years they mentioned makes no sense to me.

you didn't state your credit scores, either. that's a key element as well.

gmakerley · Posted: Fri Apr 10, 2009 10:30 am Post subject:

civic, you didn't mention if you've made any effort to reestablish your credit beyond the bankruptcy. if you have not done so, that may have influenced the bank to deny your application. your having been out of bankruptcy for almost 5 years should have afforded you the opportunity to refinance - the 10 years they mentioned makes no sense to me.

you didn't state your credit scores, either. that's a key element as well.

this was me thought i was already logged in...oh well.

jameshogg · Posted: Fri Apr 10, 2009 7:36 pm Post subject:

Hi koolhondacivic,

As per my knowledge, FHA loans are available after 1 year of discharge of Chapter 13. In order to get a conventional mortgage after Chapter 13, borrowers have to wait for 2 years. I think you are eligible for mortgage as 5 years have already passed. I agree with George that waiting for 10 years makes no sense.

I would suggest you to speak to some other lenders and check out what they have to say in this regard. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will let you know whether you'll be able to get a loan or not. This will also help you to know the type of rates prevailing in the market.

Thanks

smckaybiz · Posted: Sat Apr 11, 2009 4:19 am Post subject:

It almost kind of sounds like you went to your bank and applied for a personal loan for $25K. Is that correct or did you actually apply for a mortgage of some kind? I could see why you might be turned down for an unsecured loan that large but not a mortgage. On your duplicate thread you also stated that you have taken out auto loans and credit cards since the bankruptcy and paid them all ontime so I could only imagine that you atleast have a decent credit score.

gmakerley · Posted: Sat Apr 11, 2009 9:00 am Post subject:

i didn't see that duplicate post, but that makes me ask this question: how were your payments on the car loans and credit cards, civic? has your credit score rebounded from the old chapter 13?

i find it incomprehensible if you've been paying on auto and credit card debts and handled those well enough for a lender to deny you and give you this 10 year gibberish.

check elsewhere - don't even bother going back to that bank.

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