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Is it going to be very unlikely for me to get a mortgage following a foreclosure that I had a year ago? I know it is typically 7 years to "recover" from a foreclosure, but I am hoping there is a way to make it happen.
My wife and I have no debt, other than the home that we are in, and perfect payment history (other than foreclosure obviously)
The home that we have now, was bought 5 years ago. It has approximately $35k equity in today's market. We were able to buy another more expensive home 2 years later.... and due to circumstances... was unable to hang on to it, thus resulting in a foreclosure (spring 09).. so we moved back in to the previous home.
We will have approximately $80k to put down, and are wanting a home that could be bought around $200k.
Additionally, I have been with my employer for 20+ years and make an ok income ($70s)
I am sorry to say, I don't know of anyone that is lending one year after foreclosure, regardless of down payment. As of now, I would say your best shot would be after 3 years have passed, and with an FHA insured mortgae.
Meanwhile, be sure to pay all of your accounts on time between the foreclosure and your home purchase. Yes, even one past due could ruin your chances, depending upon when they occurred. Any collection other than medical could also make things very difficult. When the time comes, be prepared to write a letter as to what happened when you lost the home and why you are certain you would not have any problem making the proposed payment. And finally, mortgage underwriting guidelines are a constant moving target. The current trend is moving away from your favor, they are only getting tighter. Keep in touch on the changes (this site is good).
I suggest you plan on staying put where you are, only time is going to heal your situation.
You are a mature individual, for what ever reason you filed chapter 13 bankruptcy. You are now and for the next seven years, walking around with a sign "Credit Risk".
Think about this -
If you did find some hard money lender in the next few years, that is going to charge you a high rate. For a home your going to be living in for the long term future.
Compared to -
Waiting for your credit to heal and then going out and getting a better loan, so you qualify for a better (lower) interest rate, so you spend less for the long term future.
It doesn't take a rocket engineer to figure out which is best....
You and your wife need to sit down together and write out a plan. That way you have two people working together, moving in the same direction.
Study together about credit and what it is. Find out the five things that makes up your credit. Learning what you cvan do to manipulate your score higher. Credit is not given, it is earned.....
One thing you can do is invest in yourself? Send in an extra $100 (or more) every month into your current mortgage payment, (since this is an installment type of dept) after doing this for 6 to 8 months, you get reported to the CB's as more responsible and the result your score goes up.....
My past experience walking with people with bankruptcies, the credit report is totally destroyed after a BK and things do not automatically drop off. You need to get a copy of your credit report, from freecreditreport.com. (the free copy will not have your fica score), but it can list old dated information that is holding your score down. You then will need to dispute off.
Sorry I am being brute with you, I have talked people out of bankruptcy and dealt with there debt another way. You probably went a spoke to a bankruptcy attorney first (that was a mistake), instead of speaking with a debt specialist. There are so many other options.
I use to fix peoples credit for free to qualify them for loans. Been burned many times after fixing someones report/score, coming back a year later with the same problems that I debt with originally.
Now I tell what to do and they have to decide to do it for themselves.
I suggest you plan on staying put where you are, only time is going to heal your situation.
You are a mature individual, for what ever reason you filed chapter 13 bankruptcy. You are now and for the next seven years, walking around with a sign "Credit Risk".
Think about this -
If you did find some hard money lender in the next few years, that is going to charge you a high rate. For a home your going to be living in for the long term future.
Compared to -
Waiting for your credit to heal and then going out and getting a better loan, so you qualify for a better (lower) interest rate, so you spend less for the long term future.
It doesn't take a rocket engineer to figure out which is best....
You and your wife need to sit down together and write out a plan. That way you have two people working together, moving in the same direction.
Study together about credit and what it is. Find out the five things that makes up your credit. Learning what you cvan do to manipulate your score higher. Credit is not given, it is earned.....
One thing you can do is invest in yourself? Send in an extra $100 (or more) every month into your current mortgage payment, (since this is an installment type of dept) after doing this for 6 to 8 months, you get reported to the CB's as more responsible and the result your score goes up.....
My past experience walking with people with bankruptcies, the credit report is totally destroyed after a BK and things do not automatically drop off. You need to get a copy of your credit report, from freecreditreport.com. (the free copy will not have your fica score), but it can list old dated information that is holding your score down. You then will need to dispute off.
Sorry I am being brute with you, I have talked people out of bankruptcy and dealt with there debt another way. You probably went a spoke to a bankruptcy attorney first (that was a mistake), instead of speaking with a debt specialist. There are so many other options.
I use to fix peoples credit for free to qualify them for loans. Been burned many times after fixing someones report/score, coming back a year later with the same problems that I debt with originally.
Now I tell what to do and they have to decide to do it for themselves.
Good Luck
..
I appreciate your input, but I have not filed chapter 13.
And I have been investing in myself. I have been paying an extra $125 toward my mortgage every month since I bought the house (5 years)... That is what has allowed me to still have equity in todays environment.
Quote:
Originally Posted by danieloneil01
Why not just keep saving and pay cash?
Great question.... simple answer... I don't make enough money to save the considerable amount needed to pay straight cash. (in the near future anyway)...
Here is what contributes to my impatience.... I am 10 years away from retiring... I have ~$80k that I want to use to put a sizeable downpayment on a "deal house" due to the downturn.... This will allow me to pay off the remainder of the mortgage during the next 10 years of my career.
To put it in a nutshell... I am dying to take advantage of the same market plunge that I am currently a byproduct of...
....To put it in a nutshell... I am dying to take advantage of the same market plunge that I am currently a byproduct of...
You should market that statement..........
Sorry for the misunderstanding - take out bankruptcy and insert Foreclosure... After today like today, talking with SOooo people about all their problems, I'm a little brain-fried..lol..
....A foreclosure remains on your credit report seven years, so it will have a long-term effect on our creditworthiness. But, because negative information is deleted eventually, you can rebuild your creditworthiness if you take control of your debts and build a history of positive payments that will continue to appear after the foreclosure disappears.......
Seriously - do what mention above and tomorrow will be a better day...
Is it going to be very unlikely for me to get a mortgage following a foreclosure that I had a year ago? I know it is typically 7 years to "recover" from a foreclosure, but I am hoping there is a way to make it happen.
My wife and I have no debt, other than the home that we are in, and perfect payment history (other than foreclosure obviously)
The home that we have now, was bought 5 years ago. It has approximately $35k equity in today's market. We were able to buy another more expensive home 2 years later.... and due to circumstances... was unable to hang on to it, thus resulting in a foreclosure (spring 09).. so we moved back in to the previous home.
We will have approximately $80k to put down, and are wanting a home that could be bought around $200k.
Additionally, I have been with my employer for 20+ years and make an ok income ($70s)
Please give me some realistic input .....
If you bank with a local community bank, they might be able to do an in house portfolio loan for your right now with a good down payment (20-30%). The loan would most likely be a 3 or 5 year balloon, but you could refinance to a 30 year fixed at that time or just renew the loan with your local bank.
If you bank with the mega banks and don't have an existing relationship with a small local bank you are probalby out of luck.
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