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In California four years ago my husband lost his job and we lost two houses to foreclosure. One house had a $100,000 second mortgage and it has been charged off on my credit report.
Is there any way that I could qualify for a new home loan even though I have a charge off? Or will I need to declare bankruptcy to erase the $100,000 debt?
Is it better to let the charge off fall off my credit report in 4 more years or should I declare bankruptcy (I have $150,000 total in debt) and wait two years to apply for a mortgage? I realize bankruptcy stays on your credit report for 7 years.
Last edited by roseville lover; 08-19-2011 at 06:38 PM..
Reason: spelling errors
Is it better to let the charge off fall off my credit report in 4 more years or should I declare bankruptcy (I have $150,000 total in debt) and wait two years to apply for a mortgage? I realize bankruptcy stays on your credit report for 7 years.
Why the rush to jump into more debt with another mortgage if you are still working on $150k in existing debt?
Bascailly you first have to determnie if you even qualify for bankrupsy if you got that path;it isn't something you just do to get out of debt.Just with the question on buying anhter house alone its sounding like based on abilty to pay ;you do not qauilfy.
From what you are saying, it sounds like both the foreclosure and the write off were 3-4 years ago. I would probably go talk to a lender. Without being familiar with your total credit report, debt and income, no one here is going to be able to definitively answer your question.
If you're working you likely will not qualify for chapter 7 (the preferred one that wipes all you debt out) but will qualify for chapter 11 (reorganization in which you pay off your debts under a fixed schedule).
Charge off basically means the debt is gone. If you look hard enough you can find a loan. Its not going to be great interest rates and probably require a lot down, but there is money out there.
Ask this question on bkforum.com. Lots of knowledgable people to help you out.
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