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Addie
Guest
0.10 Dollars($)
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 Posted: Wed May 09, 2007 6:33 am Post subject: House went into foreclosure - can i still get loan? |
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My house went into foreclosure in 2004. I sold the property to a private party investor and he has rented it to us for the past 2 years. I need a loan $300,000 for single family residential home that I'm looking forward to. I will be using it as primary residence. My FICO score is around 614 and can submit all documents. We do not have 12 months of cancelled checks. We have no record for the contract on our previous home which we're renting. And believe me, it's a lot of frustration when you have to leave the house you'd liked being your dream home and suddenly you're renting there. We do have a chapter 7 bankruptcy already discharged on july 2007. Is it possible for anyone to offer us some kind of loan with which we can purchase our next home, though not as good as the first one? If you require this, my debt to income ratio is 50% and I have just 3 months of reserve, will that do? Im in IL
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 colin
Moderator
Joined: 30 Jun 2006
Posts: 602
Location: Waltham, Massachusetts
112.61 Dollars($)
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| Posted: Wed May 09, 2007 11:06 am Post subject: |
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Addie, I can understand your mental situation after going through a foreclosure process and having to rent the same house you owned.
Getting a loan is certainly possible. But you need to contact a few lenders to know what rates they are offering for your situation and then decide if you would be able to afford the payments or not.
You also mentioned a bankruptcy already discharged. But have put 2007, which year was it actually, was it 2006?
Colin |
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Sean Dorrance Kelly
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0.10 Dollars($)
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| Posted: Wed May 09, 2007 2:11 pm Post subject: |
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| Quote: | | We do have a chapter 7 bankruptcy already discharged on july 2007. |
It has been a recent bankruptcy discharge then I would say you wait another year or so before going for the purchase. Also try to bring down your dti ratio from its present position of 50%. |
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kenstampe
Moderator
Joined: 22 Jan 2007
Posts: 146
Location: Dallas, TX
50.64 Dollars($)
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| Posted: Wed May 09, 2007 10:25 pm Post subject: |
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Addie, my personal opinion is that you aren't ready yet. I know that isn't what you want to hear but I believe it to be true. What you describe about your situation sounds very dangerous. You are just starting to "heal" from the foreclosure and bankruptcy. These issues are so recent, however, that your financing options will be expensive which puts you at greater risk of repeating the past.
A recent bankruptcy, prior foreclosure, no proof of rental history, scores at 617 and a 50% debt to income ratio are all challenges to qualifying. My suggestion is to get at least 1 year from the discharge of your bankruptcy, during which time you should:
1) build new credit - you may have to use secured credit cards requiring a cash deposit, but you need to build new credit.
2) keep everything on time.
3) start keeping track of your rent payments. Use a check to pay your rent, pay it the same time every month, and keep copies of the cancelled checks. If you need to, write up a rental agreement, sign it and get your landlord to sign it instead of waiting for him to create something.
You need at least a 12 month history of nothing negative happening. Do that first!
good luck. |
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carnahandavid
Joined: 21 Dec 2006
Posts: 239
58.40 Dollars($)
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| Posted: Thu May 10, 2007 5:14 pm Post subject: |
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Addie, all other replies to your question are very reasonable and valid points which suggest it will not be a good idea to purchase a home now.
You need to build up your financial resources and credit profile first and then start your search for a new home.
The stats you have provided are all what a lender does not want to see in someone's profile who is applying for mortgage. But put in some effort and you will start to see changes very soon. |
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Mac_7
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0.10 Dollars($)
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| Posted: Fri May 11, 2007 3:23 am Post subject: |
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| What about getting subprime mortgages - i understand there has been recent problems in the subprime market but then if he is in need of the loan right at this moment, he can surely apply, isn't it? |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.61 Dollars($)
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| Posted: Fri May 11, 2007 3:58 pm Post subject: |
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Foreclosure....Bankruptcy, Mac I don't think he will be able to make high interest payment which he will get now from sub prime lenders.
Thanks
Blue |
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lisa
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0.10 Dollars($)
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| Posted: Sun Jun 10, 2007 11:04 pm Post subject: mortgages after bankruptcy |
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| where to get a mortgage after bankruptcy that was done 6 months ago. where to look |
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sara
Joined: 05 Jul 2006
Posts: 1168
Location: New Brunswick, New Jersey
216.67 Dollars($)
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| Posted: Mon Jun 11, 2007 2:24 am Post subject: RE: Home loan after bankrupcy |
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Hi Lisa,
Were you discharged from bankruptcy 6 months ago? or is it that you filed at that time? |
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colin
Moderator
Joined: 30 Jun 2006
Posts: 602
Location: Waltham, Massachusetts
112.61 Dollars($)
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| Posted: Mon Jun 11, 2007 4:05 pm Post subject: |
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Lisa, if the mortgage was discharged 6 months ago then I would advice that you wait for some more time and rebuild your credit before applying for a mortgage.
Right now the rates offered to you will be much higher than normal because of the bankruptcy you just had.
Colin |
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