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Old 05-22-2018, 09:29 PM
 
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Just trying to shop around for a $50K loan but having difficulties with the 7 year waiting period. Everything else is good. The loan would be for land in Florida. Thanks in advance!
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Old 05-23-2018, 01:56 AM
 
Location: Georgia
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Originally Posted by mojo467 View Post
Just trying to shop around for a $50K loan but having difficulties with the 7 year waiting period. Everything else is good. The loan would be for land in Florida. Thanks in advance!
Completely depends on when your bankruptcy began and was discharged. A Chapter 13 will drop from your credit approximately 7 years after it was initiated, give or take a month or so for the credit reporting agency to figure it out (you may have to remind them). A Chapter 7 will drop from your credit report 10 years after initiation.

You will find it very difficult to obtain almost ANY kind of credit while you are still working through a Chapter 13 repayment plan, or after a Chapter 7. In Chapter 7, your assets are not sufficient to clear your debts and your prospects do not convince the bankruptcy court that you could repay your debt within a reasonable period of time (i.e., 3-6 years).

Most banks will not touch you within a year of your discharge date. Those that do, will charge you very high interest rates (to compensate for the risk of lending to someone who has a predisposition for not repaying debts.) I would imagine that loan for land would be even more difficult. Yes, it is secured, but most land tends to sell slowly and it is not an asset that can be readily liquified if foreclosure becomes an issue.

If it's been less than 7 years, I have trouble understanding how "everything else can be good". Your credit score is probably low-mid 600's at the very best, since you have the bankruptcy on your record and it is a HUGE red mark against you. It has probably impeded your ability to establish credit, also, which means that your record is probably pretty new, another strike against you.

You may have to go in with a co-buyer to buy the land, one that has strong credit. Talk to your bankruptcy attorney and see what remedies they can suggest.
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Old 05-23-2018, 05:17 AM
 
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Thanks for the answer but my problem is a foreclosure in 2013. Never had a bk and my credit is currently excellent.
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Old 05-23-2018, 05:19 AM
 
Location: Cary, NC
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Credit unions or small local banks would be my first approach.
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Old 05-23-2018, 08:57 AM
 
4,547 posts, read 11,566,294 times
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Originally Posted by mojo467 View Post
Just trying to shop around for a $50K loan but having difficulties with the 7 year waiting period. Everything else is good. The loan would be for land in Florida. Thanks in advance!
The 7 year waiting period is for Fannie/Freddie loans. For bare land, you would not be getting one of those loans. You should go to your local community bank. Hopefully you already bank at one as they are more apt to approve such loans for current customers. You will probably need 20%-50% down for bare land purchase.
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Old 05-23-2018, 09:07 AM
 
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The costs of getting a loan may be quite high. Maybe consider instead of borrowing $50k you should save up $15k and then borrow the other $35k from Lending Club or Prosper.
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