BK, foreclosure and then a new house?? (loan, interest rate, real estate)

[stacylee926]

This thread may get me some negative feedback, but I am just so mad.... I really need to vent.

I read several message boards on finance/credit/mtge etc. I constantly see posters asking when they can get another mortgage after BK and foreclosure and get all weepy when they are told 2 years. They are whining that they just got discharged and really really want to take advantage of the cheap housing market. I am mad that they are even ASKING the question!!

Good grief - the housing market stinks now BECAUSE of them!!! Since they walked away from their debts, these BK filers now have saved thousands of dollars for a DP and want to buy up someone else's cheap foreclosure while other people are struggling to pay their debt and find it hard to actually save the 5-10k needed for a DP. What is wrong with this picture???

Now I am a reasonable person (who happens to be a renter) and I KNOW that BK is a legitimate and necessary option for some (many?) people these days due to loss of jobs, medical expenses etc. However, it grates on my last nerve to keep reading how the second discharge is complete they want to play the real estate/credit card game again. The laws need to change so that BK filers (especially when there is a foreclosure involved) positively must wait several years before they can get credit and another house. Sit on the sidelines, get used to a new budget, change spending habits and THEN they can play the game again. People make mistakes and that is why we have the BK option which is fine. We just need to manage this better.

Maybe it is just greediness, or people still want to keep up with the Jones's - but the BK system is not strict enough if someone can file BK and immediately smile and get lots of credit or even consider buying a house.

Sorry if I offended anyone... but I really needed a vent today on this subjct!

[cdelena]

It is even worse than you think. I know a couple that are very up-side down on a home that has depreciated more than 25% so they cannot sell without a big loss.

They have decided to upgrade to a new larger home and are in the process of buying a bigger place at the same cost and getting a much lower interest rate and therefore more home for lower payments. Their plan is to simply walk on the last home taking the foreclosure and hit on their credit, but they will already be in the new home at a much better payment structure.

I want to blame them but they claim the industry and government created the situation and they are just adapting to reality.

[dvflyer]

My neighbor walked away from his house, and bought a new house before the foreclosure hit his credit.... you'd think it wouldn't be so easy... I know he couldn't afford two mortgages so, given the current economic conditions, I can't believe someone gave him another loan.

[Thatguywho]

bk clears up the credit in a way, foreclosure is an open account.

In both cases you can get a loan the next day depending on your scenario, money down, etc.

BK for an individual is not a big deal at all.
Foreclosure sale is no different than letting your car get repo'd.

We are not in this mess because 1% of the loans are subprime and they are introuble having to pay 9% loans. That is just the kool aid you are drinking.

before you attack a family just trying to survive in regards to bankruptcy, maybe you should look at big business...I mean, really.

[bentlebee]

No one in their right mind should give you negative feedback since you hit the nail on the head and I agree with you and so do my friends....

Change the laws...sooner than later..the mess is going to be worse by the day.