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Old 08-26-2009, 07:42 AM
 
210 posts, read 357,165 times
Reputation: 75

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Not having been in this situation before we are getting confused as to the actual availability. My wife and I bought this house 6 years ago in a 5% down situation and it was 25% of MY not my wifes monthly income. Two years later we both lost our jobs at the phone company within 60 days and the lender at the time wouldnt work with us at all so we filed a ch 13 which has been on time since, but now we are planning to move xcross the country to be near family and I am being told you have to have at least 50% down and be out of brptcy for two years and rebuilt credit to an "A" borrower. To do that we are going to have to get c cards and pay them off to show. We dont need anything we are in our 50's and have what we need and are downsizing, (i.e smaller house) and in the area we are looking at we will easily have the 20% down. Anyone know of a lender that will do in house underwriting in the Pennsylvania market, or even know which lendrs to stay AWAY from?
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Old 08-26-2009, 09:29 AM
 
Location: Hampton Roads, Virginia
1,123 posts, read 4,846,381 times
Reputation: 689
From what I have been reading, you cannot be paying on a 13 and buy a house. BK has to be discharged, and that won't happen until after you are paid up. It makes sense, if you have 20% down on a home, why are you still paying on BK? No one will finance you until you are out of BK. You might want to consider using that DP to pay off the 13 then start rebuilding. Once the BK is done, you have started fresh for the future.
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Old 08-26-2009, 12:34 PM
 
210 posts, read 357,165 times
Reputation: 75
Well I guess what I failed to mention is that We make 3 payments on the ch 13 each month so it will be discharged way in advance of schedule,( we didn't enclude the mortgage in the 13 just the arrears, as we have done with things like auto loans in the past, and then use the same $ to save the dp. Maybe I am just very niave. The loss of both jobs was an eye opening experience. I'm going re-instate all the teachings my depression era father taught me
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Old 08-26-2009, 03:34 PM
 
Location: Hampton Roads, Virginia
1,123 posts, read 4,846,381 times
Reputation: 689
Even if the BK didn't include the house, it doesn't matter. No one will give you credit (credit cards, loan etc) until that BK is paid and discharged. Any large purchases have to go thru the trustee I believe. The trustee has a big problem with you having money for a DP on a house when you still owe him. I know it is hard to stomach.... but until that BK is done, your hands are still tied to the BK judge. Once your obligations are taken care of, then you can get credit cards and start rebuilding.
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Old 08-26-2009, 05:41 PM
 
210 posts, read 357,165 times
Reputation: 75
I understand all the above, I meant AFTER the bk is discharged. I'd have a big problem with the scenario myself. As I said I"ve never been in this situation before and I am 55 yrs old, paid off every vehicle early, never been foreclosed on, been on time generally for the past 35 years. But even starting out as a kid so to speak it wasnt all this difficult, evidently they only look at the bk and not the past 35 yrs of ontime and early payoffs. So if this is the case what is going to become of all the people who have lost jobs and houses and cars now? Are we going to become a nation of perpetual renters? I do remember decades ago a financial "advisor" told me I had to get credit cards to raise my score to get a loan. (I was 22) Didnt make much sense to spend money to save money so we just saved and bought our first house cash for $12k. I believe Ben Franklin said it best, "better to go to bed hungry than to wake in debt"
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Old 08-27-2009, 07:53 AM
 
Location: Hampton Roads, Virginia
1,123 posts, read 4,846,381 times
Reputation: 689
OK, your original post made it sound like you were moving soon and wanted to buy right away in PA. You will still have to rent first, that is not so bad. It will give you time to figure out which neighborhood fits your needs. When the BK is discharged, it is still 2 years (or 3) before you can buy again.

I understand what you are saying about the current situation - foreclosures etc. For now the rules still say you must wait at least 2 years. Then you have to have decent credit scores and you will bring those up by reestablishing some credit. My personal feeling is that the banks 'may' review mortgage rules in the near future to account for this recession and try to get people back into homes. Or they will take a hard stand and stick to the existing formula to avoid getting into that bad mortgage situation again.

The only possible scenerio I can see, is an owner financing situation. Of course that severely limits your housing choices - much better to be preapproved then be able to purchase any house you like.

When we moved to our current area, I had sold my home and then rented here (because I saw what the market was doing and REFUSED to overpay for a house just to own again). I lucked out and found a house that was perfect for us. The landlord has allowed me to paint or whatever I want to do - within reason of course. She has said she would be more than happy to sell it to me - but she would only do owner financing (house is paid for) because she wants the steady stream of income for retirement and not a lump sum. I imagine that would be the underlying reason for owner financing in most situations.
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Old 08-27-2009, 10:58 PM
 
Location: Southwest Nebraska
1,297 posts, read 4,188,320 times
Reputation: 898
My wife and I filed chapter 7 and had a foreclosure included. It has been 2 yrs discharged and have to wait 3 yrs cause of foreclosure.

Then we can get a FHA loan with a low of 600 fico, ours is 630. Only 3.5% down and up to 1000/mo payment on our 33k/yr income. We only want a payment of 400/mo so no problem.

If it was not for the foreclosure we could do this now.

So FHA might work for you too.
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Old 08-28-2009, 10:56 AM
 
Location: Northern California
481 posts, read 662,163 times
Reputation: 245
Millions of people every year have to file bankruptcy. You are not alone.

I think you are better off just to rent for a while, until the market bottoms out.

Good luck!
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Old 09-01-2009, 04:54 PM
 
Location: North Cackelacky....in the hills.
19,556 posts, read 19,548,825 times
Reputation: 2499
You could find an owner financed property and not have any dealings with credit scores OR 'traditional' lenders.
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Old 02-09-2010, 06:16 PM
 
1 posts, read 3,429 times
Reputation: 10
How many times can you file a chapter 13
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