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Old 05-07-2008, 12:45 PM
 
430 posts, read 1,096,853 times
Reputation: 131

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I hate to post this because it is very hard to deal with. We live in MIchigan and lost good paying jobs and went as far as we could but reached the end of savings ect. We have fallen behind on everything and will loose our home. We are in the process of filing backruptcy. My husband took a job out of state which he had to because there aren't any here. i would like to hear from others who have gone through this. How did you move forward, rent a home or get over the feeling that you failed
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Old 05-07-2008, 01:04 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,664,477 times
Reputation: 1008
if it's bk 13...then you can buy a home in 1yr
if it's bk 7 then you can buy a home in 2yrs
if you foreclosed then you can buy a home in 3yrs.

i have seen ppl who have foreclosed AND did BK 7 have a 700+ score.
They rented somewhere cheap...and starting rebuilding their credit.
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Old 05-07-2008, 01:34 PM
 
Location: Broward County
2,517 posts, read 10,260,929 times
Reputation: 1369
renriq02 is correct. Life goes on.....believe me. You will recover from this and things WILL get better. There is light at the end of the tunnel. hang on....keep your heads up high and press forward. Losing your home sucks big time. But you will get another one eventually. May I suggest moving out of Michigan if you can ? I heard things are very very bad in your state. Good luck and remember that things will get better.
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Old 05-07-2008, 01:50 PM
 
430 posts, read 1,096,853 times
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We are moving my husband is in MInnesota and took a really good jon there. We hope to join him in June or early July. We had no choice. If we had to file Bankruptcy chaper 7 then we had to move forward and if that has to take up to another state we have no choice. I had heard because we will have to rent is that at least he has a good job and if we can show a income we can get a house to rent.
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Old 05-07-2008, 10:23 PM
 
98 posts, read 314,990 times
Reputation: 71
We had a similar situation, we filed 7- June 05'. We have paid everything on time, we sold our home no foreclosures and our score is still not where it should be. We had a sub prime loan ready to go last summer had the house picked out then our mortgage guy called and said we lost our loan. He told us most sub prime loan companies went bankrupt and the best you can get that close to a bankruptcy is a sub prime loan. Now the loan companies are being very cautious and they want better scores with more money down. We are currently renting a house, its a very nice house, the only reason it is for rent is because the housing market is so bad no one can sell their home. The owner of this house bought a new home, had this one listed for 10 months and it did not sell so he decided to rent it because he could not make two house payments. It is sad not owning our own home, we had a nice home and a nice income. We owned our house for 14 years but now I wonder if we are going to get back into a house because of the high down payment. Kind of depressing.
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Old 05-07-2008, 10:26 PM
 
98 posts, read 314,990 times
Reputation: 71
Quote:
Originally Posted by renriq02 View Post
if it's bk 13...then you can buy a home in 1yr
if it's bk 7 then you can buy a home in 2yrs
if you foreclosed then you can buy a home in 3yrs.

i have seen ppl who have foreclosed AND did BK 7 have a 700+ score.
They rented somewhere cheap...and starting rebuilding their credit.
Foreclosed with a BK 7? 700 SCORE? Doubt it.

Maybe several years later.
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Old 05-08-2008, 12:23 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,664,477 times
Reputation: 1008
I'm only telling you from what I have seen from my borrowers.


Quote:
Originally Posted by Lereca View Post
Foreclosed with a BK 7? 700 SCORE? Doubt it.

Maybe several years later.
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Old 05-08-2008, 01:09 PM
 
2,197 posts, read 6,919,396 times
Reputation: 1698
I think it's commendable that you're moving on and rebuilding your lives. Getting jobs somewhere else is a good start, and I'm sure you'll be able to rebuild your scores as well.

I don't think it's realistic to expect that it will only take a few years to wash your hands of it, however, or that you will be able to obtain market rates or low down payment loans in that short a time period. Lenders have to be able to assign risk scores and rate loans accordingly, especially now, when their recent lack of caution and good judgment is causing such fallout. It used to be that borrowers with a BK or foreclosure (or even a lien in lieu of) had to wait until it cleared their credit report before getting market rates on good loans. Until then, a BK or foreclosure was rated exactly what it is-- subprime. It would be good for the market if we returned to that norm. It not only protects riskier prospects from getting in over their heads again, but rewards those with higher scores with better rates. It's a good system of checks and balances, and we clearly need those.

There's nothing wrong with renting and not using credit while you rebuild your financial base. Actually, that's preferable, because it eliminates the temptation for someone to buy what they can't afford or spend what they don't have. It's a good thing, really, designed to protect borrowers and lenders, as well as investors.

Good luck to you!
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Old 05-08-2008, 02:07 PM
 
4,982 posts, read 12,660,503 times
Reputation: 3786
Quote:
Originally Posted by goodbyehollywood View Post
I don't think it's realistic to expect that it will only take a few years to wash your hands of it, however, or that you will be able to obtain market rates or low down payment loans in that short a time period. Lenders have to be able to assign risk scores and rate loans accordingly, especially now, when their recent lack of caution and good judgment is causing such fallout. It used to be that borrowers with a BK or foreclosure (or even a lien in lieu of) had to wait until it cleared their credit report before getting market rates on good loans. Until then, a BK or foreclosure was rated exactly what it is-- subprime. It would be good for the market if we returned to that norm. It not only protects riskier prospects from getting in over their heads again, but rewards those with higher scores with better rates. It's a good system of checks and balances, and we clearly need those.


Good luck to you!

Actually is it realistic to get a new home loan in the time periods Renriq describes and it would be at market 30 yr. fixed rates with low down payment as an option...it's known as FHA.
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Old 05-08-2008, 07:46 PM
 
2,197 posts, read 6,919,396 times
Reputation: 1698
And how fair is that to the people who work hard to keep their credit clean? It isn't easy for them, either.
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