Posted on: 31st Jan, 2010 04:35 pm
combine a crazy upside down house, unforeseen medical bills, and having to take a year off work to care of a terminally ill parent our tax attorney pretty much recommended bankruptcy which did and was discharged in sept. 2009.
i’m trying to get some advice regarding how to get back into a mortgage after this chapter 7 bankruptcy & foreclosure. i know that fha says 2 years from a chapter 7 bankruptcy and they also want to see 3 years from a foreclosure. the foreclosure part is the main problem for us. we bought our home for $356,000 in 2005 and its worth around $115,000 today. the home was included in our bankruptcy and we did not reaffirm so the debt on the home is discharged. we still live in the house and are waiting for bofa to foreclose on it. so we just stick what used to be our mortgage payment into are savings each month. but the problem is that bofa doesn’t want to foreclose or take a deed in lue. they pretty much said that we are on the bottom of the list and they have no clue when they will move forward with the foreclosure. we are in one of the hardest hit markets in california and our area is already flooded with bank owned properties. so even if we are 2 years out from our bankruptcy once they finally foreclose on our home it will start a new 3 year timer on our ability to get a mortgage.
we have already started the process of rebuilding our credit. both my wife and i have secured credit cards that we make small charges to each month (under 10% of available balance) and then pay off in full. we also took out a small ($3,000) secured loan at 3.1% interest for 3 years with our credit union. the $3,000 from the loan was just rolled right back into our savings and we setup automatic payments. the interest is only like $150 over the life of the loan which isn’t bad considering we get to add positive credit history on an installment loan to our credit reports. our credit scores are in the 620-630 range currently.
our income is $95,000 a year and is completely verifiable. we own both our cars and the only debt that we carry is around $30,000 in student loans which come out of deferment in june. but, it’s another trade line for my wife’s credit rebuilding.
our idea is to get into another foreclosed home and just fix it up. we would be looking for something around $120,000 and would most likely be putting as much as 40% for a down payment. if we took this as a fixed 15 year loan our frontend dti is like 10% and the backend is 13% which is very low.
considering the above information are the underwriting guidelines for a conventional loans written in stone? or will they consider lending to us with our low dti, verifiable income, and large down payment even if we will have a recent foreclosure? if the answer is still no for a conventional loan then are their other methods of securing a non-conventional loan that would be reasonable?
we are just trying to get some insight into challenges that we will face trying to get back into a home with our bankruptcy and the pending foreclosure. any suggestions or advice would be appreciated.
i’m trying to get some advice regarding how to get back into a mortgage after this chapter 7 bankruptcy & foreclosure. i know that fha says 2 years from a chapter 7 bankruptcy and they also want to see 3 years from a foreclosure. the foreclosure part is the main problem for us. we bought our home for $356,000 in 2005 and its worth around $115,000 today. the home was included in our bankruptcy and we did not reaffirm so the debt on the home is discharged. we still live in the house and are waiting for bofa to foreclose on it. so we just stick what used to be our mortgage payment into are savings each month. but the problem is that bofa doesn’t want to foreclose or take a deed in lue. they pretty much said that we are on the bottom of the list and they have no clue when they will move forward with the foreclosure. we are in one of the hardest hit markets in california and our area is already flooded with bank owned properties. so even if we are 2 years out from our bankruptcy once they finally foreclose on our home it will start a new 3 year timer on our ability to get a mortgage.
we have already started the process of rebuilding our credit. both my wife and i have secured credit cards that we make small charges to each month (under 10% of available balance) and then pay off in full. we also took out a small ($3,000) secured loan at 3.1% interest for 3 years with our credit union. the $3,000 from the loan was just rolled right back into our savings and we setup automatic payments. the interest is only like $150 over the life of the loan which isn’t bad considering we get to add positive credit history on an installment loan to our credit reports. our credit scores are in the 620-630 range currently.
our income is $95,000 a year and is completely verifiable. we own both our cars and the only debt that we carry is around $30,000 in student loans which come out of deferment in june. but, it’s another trade line for my wife’s credit rebuilding.
our idea is to get into another foreclosed home and just fix it up. we would be looking for something around $120,000 and would most likely be putting as much as 40% for a down payment. if we took this as a fixed 15 year loan our frontend dti is like 10% and the backend is 13% which is very low.
considering the above information are the underwriting guidelines for a conventional loans written in stone? or will they consider lending to us with our low dti, verifiable income, and large down payment even if we will have a recent foreclosure? if the answer is still no for a conventional loan then are their other methods of securing a non-conventional loan that would be reasonable?
we are just trying to get some insight into challenges that we will face trying to get back into a home with our bankruptcy and the pending foreclosure. any suggestions or advice would be appreciated.
Sorry to hear about your troubles but Foreclosures are generally 3years from discharge with FHA
Guidelines may change in the future....but they are very strict now
Guidelines may change in the future....but they are very strict now