Financing in Madison>Question Details

Joey, Both Buyer and Seller in Madison, WI

How does one qualify for financing after recently filing for bankruptcy?

Asked by Joey, Madison, WI Sat Nov 27, 2010

I have secure employment and make a good salary, but obviously my credit is damaged. I was involved in the recent predatory lending explosion, and simply cannot afford the house I purchased.

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Joey,
I would suggest discussing your situation with your lender. Ask what it will take to get your credit reestablished and what it will take to get approved to purchase another home. Since lenders have become more strict with their lending, it may be that you will need to sell your home and get your credit in order before purchasing another home.
Some lenders have plans to assist you in building your credit so start there and see what you need to do.

Sincerely, Donna & Dan
1 vote Thank Flag Link Sat Nov 27, 2010
Joey, This is really something you would best be advised to discuss with your bankruptcy attorney and a lender.
There are specifics to your situation that none of us are aware. If you have not yet filed bankruptcy and you still own your home then perhaps a short sale may be possible. In that case I would also consult a Realtor in your area to discuss the process. Best of luck to you!
0 votes Thank Flag Link Thu Dec 9, 2010
Hi, Joey. If you're fiiling a Chapter 7, its a 2 yr waiting for FHA and VA and 3 yr wait for CONV. It a property was included in that BK, that's considered a foreclosure. In that case, its a 3 yr wait from the date the property goes back to the bank (the day after your redemption period expires) for FHA and VA, and a 5 yr wait for CONV (conventional/fannie mae/freddie mac) financing.
0 votes Thank Flag Link Thu Dec 9, 2010
My advice would be first try to work on your credit score. Get your three credit report put your consumer statement and explain the reason for bankruptcy. Pay off any unpaid bills or if dispute is to be done do in writing and mail with return receipts. That may help and then talk to a lender. Lenders do charge upfront mortgage insurance (up to 10 years) plus give you a higher rate. For all things do your homework, calculate the risk and rewards, and ask as many questions as you think the possibilities are! If you need any more information you may send me an email ( no phone call please) . I like helping people.
Web Reference: http://www.guptahomes.com
0 votes Thank Flag Link Thu Dec 9, 2010
Hi Joey,

That is a very broad question. You should seek the help of a qualified lending in and around the area.

If you do not have a good lender drop me an email.
Web Reference: http://jdbirschbach.com
0 votes Thank Flag Link Mon Nov 29, 2010
Joey,
There is obviously not enough information in your question to give anywhere a complete and competent answer. You will find information to peice together an answer from several knowledgeable professionals.
An attorney, lender, short sale realtor.

And i meant experienced. I speak to about 10 homeowners a week who are in similar situations, some worse, some better. We can help some, not others. But unless you contact us, you will never know. Click on the video below as a start.
0 votes Thank Flag Link Sat Nov 27, 2010
It seems you have two issues. First would be to explore the possibility of a "short sale" to sell your home. It is important to work with an experienced agent on this as they can be complicated and it will take the cooperation of the buyer, seller, lien holder(s), title company, and real estate agents.
The second issue is to find a way to purchase another. Two options without involving a lender would be a land contract or a rent with option to buy.
0 votes Thank Flag Link Sat Nov 27, 2010
Define "predatory" lending. Did they threaten your life if you didn't apply for the loan? Did they twist your arm until you signed? Did they not tell you what your payments would be and what changes in payments (if an ARM) would happen? If they did anything against the law or did not tell you about interest rate hikes which would occur with Adjustable Rate Mortgage loans, then you should have gotten with a lawyer.

Now if everything was in the loan paperwork and you didn't read it, then you're at fault. If they told you you could "afford" x amount of house for x per month and you knew darned well that this would make things tight in the budget, then your at fault.

Basically, if the lender actually did snow you, then they should be brought up on charges or at the very least sued. But please answer back on what "predatory" lending practice occurred.
0 votes Thank Flag Link Sat Nov 27, 2010
You have to wait three years before you can get mrotgage financing.
0 votes Thank Flag Link Sat Nov 27, 2010
Are you about to lose your house? Or, did that happened with the bankruptcy? What you will need to do is re-establish credit. If you have any credit cards that are still open, start to use them for small amounts and pay them off right away. Look into getting a secured credit card. You can look on-line for that. That means that you give them an amount of money, then basically charge against your own funds. Also, use this card regularly for small amounts and pay back right away. This will show that you can be responsible with credit.
No one can be a victim in total ignorance. There were too many people who didn't take the time to read and understand what was going on, or were just ready to listen to the person on the phone who told them not to worry, they would get the loan for them, and didn't even pay attention to what they were signing.
0 votes Thank Flag Link Sat Nov 27, 2010
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