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Old 06-13-2015, 03:56 PM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
Reputation: 3355

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So my BK was finalized last yr in January (2014). After foreclosing on our home we were sued by the bank so we ended up filink for BK so we wouldn't have to pay back the banks.

I thought after 2 yrs I'd be able to buy again (2 yrs after discharge that is). Well, I havent tried to get another home loan but I did buy a vehicle last yr and got a good interest rate on it. So now that I've had the truck for a yr now, I tried to refin with another lender hoping to get a slightly better rate and lower my payment. So I went to lending tree dot com and had a few offers come back that I was approved for. The rates were ridiculous!

My wife and I have good jobs, good salaries, good people just got caught up in the market and lost our butts on our house. Prices are going up (We're in FL) and we dont want to have to pay a crazy amount for a home in another 2 yrs the way prices are going. The BK is the only ding (altho a BIG ding) on our credit. We were 800 scorers before, mine is back up to about 700 and my wife's is hovering around 680 or 690, and yes, not too bad after 18 months of a BK discharge. So I'm assuming a home is out of the question if I'm getting back ridiculously high rates from banks to refi my vehicle.
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Old 06-13-2015, 04:04 PM
 
Location: Austin
7,077 posts, read 16,889,211 times
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Quote:
Originally Posted by StreetSmarts View Post
The BK is the only ding (altho a BIG ding) on our credit.
The BK is not the only think on your credit. The foreclosure is on your credit and that's bad. I'm surprised that you have a 700 score with both a foreclosure and a BK. You might think you are good people, but banks don't look at you as good people. They look at you as irresponsible people, and if you want their money, you play by their rules.
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Old 06-13-2015, 04:23 PM
 
Location: FLORIDA
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So how much longer would I have to wait? another yr?
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Old 06-13-2015, 06:12 PM
 
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Personally I have no idea why a bank would ever allow someone with a previous foreclosure and bankruptcy to take out another mortgage. I get that people fall on hard times, markets crash, etc., but you walked away from your responsibilities once. What's to say you wouldn't be willing to do it again if the going gets tough? It just seems like a bad business practice if we don't want the market to crash again.
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Old 06-13-2015, 06:13 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,386 posts, read 50,582,032 times
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Quote:
Originally Posted by StreetSmarts View Post
So how much longer would I have to wait? another yr?
It depends on the state, but in most, like ours, the foreclosure remains for 7 years.
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Old 06-13-2015, 06:52 PM
 
Location: Austin
7,077 posts, read 16,889,211 times
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Originally Posted by StreetSmarts View Post
So how much longer would I have to wait? another yr?
You would not be able to get a conventional loan for 7 years, unless they change the laws before then. Some FHA lenders might give a loan with higher rates after 3 years, but you have to hit their credit score minimums or put more money down to compensate.

Most people think FHA is the way to only put down 3.5%, but that's not the case anymore. Many buyers are required to put down 5-10% if their credit isn't up to par.
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Old 06-13-2015, 07:45 PM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
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Quote:
Originally Posted by JNR417303 View Post
Personally I have no idea why a bank would ever allow someone with a previous foreclosure and bankruptcy to take out another mortgage. I get that people fall on hard times, markets crash, etc., but you walked away from your responsibilities once. What's to say you wouldn't be willing to do it again if the going gets tough? It just seems like a bad business practice if we don't want the market to crash again.

Ur kidding right? to never take out another mortgage again? thats a little extreme.
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Old 06-13-2015, 07:48 PM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
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Quote:
Originally Posted by FalconheadWest View Post
You would not be able to get a conventional loan for 7 years, unless they change the laws before then. Some FHA lenders might give a loan with higher rates after 3 years, but you have to hit their credit score minimums or put more money down to compensate.

Most people think FHA is the way to only put down 3.5%, but that's not the case anymore. Many buyers are required to put down 5-10% if their credit isn't up to par.
by the time i hit the 3 yr mark, my credit score wil be back up around 750-800.

i built my credit score back up to 703 already, and BK was discharged in January of 2014.

plus, lets be honest, money talks. with 20-25k down, and an income of 130k, surely we could get something worked out by end of next year.
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Old 06-13-2015, 08:04 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
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Maybe, but it's not all about the income and the credit score. The black marks are still going to scare off lenders, though they may start to be more lenient after you have gone 4-5 years without any blemishes.
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Old 06-13-2015, 08:19 PM
 
Location: FLORIDA
8,964 posts, read 5,695,315 times
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maybe a credit union would be easier?

i got a really good rate on my vehicle loan, which i got just 3-4 months after BK discharged. pretty cool i got 5.5% for 60 mos just 3 months after BK discharge. maybe i can try same bank since i've established a relationship with them. capitol one.
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