Financing in Chicago>Question Details

rrchicago2013, Home Buyer in Chicago, IL

Looking for loan post chapter 7 bankruptcy that was discharged in May 2013.

Asked by rrchicago2013, Chicago, IL Sat Sep 21, 2013

Looking for a loan of approx 450k on a 725k purchase. I have 250k to put down. Have high w2 income.

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11
$250,000 to put down right after a BK? Only two ways I see that happening on the up-and-up is the sale of your principal residence that was re-affirmed or taking it out of a retirement account. If you hid it from the creditors I wouldn’t be posting about it in public forums, the authorities can read this too. And no, nothing is anonymous, everyone leaves tracks when they post something online.

But to answer your question, not through normal lending channels unless the bk was the result of a serious illness or death of a wage earner in the household. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
2 votes Thank Flag Link Sat Sep 21, 2013
Thanks for you reply. I made a significant sale and have the 250k coming coming as a commission. It was all post bk so no issues from that point of view.
Flag Sat Sep 21, 2013
Thanks for you reply. I made a significant sale and have the 250k coming coming as a commission. It was all post bk so no issues from that point of view.
Flag Sat Sep 21, 2013
Excellent answer.
Flag Sat Sep 21, 2013
This is a lender question. After chapter 7 it takes three years minimum from discharge date.
1 vote Thank Flag Link Tue Sep 24, 2013
Let me get this right. You filed a Chapter 7 Bankruptcy which is a total DISCHARGE of all your unsecured debts.

You're buying a house that's worth over one million dollars 4 months after a discharge? Sounds like you anticipated this money coming in and you withheld it from the BK attorney and the courts.


Only an inquiring mind would want to know if the bankruptcy court allowed you to keep $250,000.


This has to be a trick question to catch someone up who would touch this loan. No one would attempt this.

Consult with your Bankruptcy Attorney. Please come back and let us all know what he suggested.

Thanks
1 vote Thank Flag Link Tue Sep 24, 2013
The only way to know is to speak to a lender.
1 vote Thank Flag Link Sat Sep 21, 2013
I agree with David Hanna, the big question for a lender is where the $250K come from after a discharge date of May. This opens up the question of did the money exist prior to May 2013 and will it open up the Chapter 7 to past creditors who may feel they were cheated and then that could open up a fraud investigation. If you want to see what that looks like Google Joe and Teresa Guidice. They are facing 50 years on 39 counts of BK fraud.

One the other hand, you may have gotten the money on June 2013 in the lottery. In which case find a house for $250,000 and don't draw attention to yourself or repeat mistakes of the past.
1 vote Thank Flag Link Sat Sep 21, 2013
Very doubtful. It can only be a portfolio lender, and they are going to be asking many questions about the $250k when you just came out of a Chapter 7 BK. The smart move is wait a year unless you want the BK and all your finances under a microscope.
1 vote Thank Flag Link Sat Sep 21, 2013
To answer the question, YES you could get one now if you had a qualifying extenuating circumstance.

Now whether or not any underwriter would sign off on your loan (should you have a qualifying extenuating circumstance) depends heavily on where the 250k came from. If it came from a source you can publically talk about, you'll probably be in a new home soon.
Web Reference: http://RobWeber.com
0 votes Thank Flag Link Wed Sep 25, 2013
It's too soon to obtain traditional financing. Try a community bank that will hold the loan in its portfolio.
0 votes Thank Flag Link Mon Sep 23, 2013
Call Todd Olson - Republic Bank. 630-240-2600. Portfolio lender, may be able to help.
0 votes Thank Flag Link Sat Sep 21, 2013
call Wesley at

Our Team | United Equity Mortgage Corp.
http://www.unitedequity.us/our-team.html‎
15+ items - Wieslaw (Wesley) Jura Vice President. NMLS ID 225274 ...
Wieslaw (Wesley) Jura Vice President. NMLS ID 225274 773-304-3412.
Paul Gondek Senior Loan Originator. NMLS ID 226276 773-304-3414.
0 votes Thank Flag Link Sat Sep 21, 2013
I have the perfect Mortgage guy that specializes in this area. Please contact me and I will help you get started.

Thank

Frank Salvage
frank@movingwithfrank.com
0 votes Thank Flag Link Sat Sep 21, 2013
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