Financing in Cooper City>Question Details

Wanting A Ho…, Home Buyer in Cooper City, FL

i declared bankruptcy a year and half ago. i am doing great now. Am i wasting my time trying to obtain a loan?

Asked by Wanting A Home..., Cooper City, FL Thu Dec 10, 2009

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0 votes Thank Flag Link Thu Oct 18, 2012
In addition to the below information, you cannot have any collections or late payments after BK, even if you have a legitimate reason.

It depends on what type of BK too - Was it Chapter 7 or Chapter 13? If you paid back your debt in Ch. 13, then you will need 12 months satisfactory payment history with not deliquencies of any time during that time.

Hopefully this helps,
Jacqueline Clarke
0 votes Thank Flag Link Thu Dec 10, 2009
Great info so far.

If you work with a lender who's interested in earning your future business, not just closing this month, they SHOULD be able to help with your credit.

In most cases, your bankruptcy will need to be 2 years old to buy. However, the most common problem I see with people who have had a bankruptcy is they do not review their credit until long after the bankruptcy nor do they try to build credit after the bankruptcy.

It's not uncommon for accounts included in a bankruptcy to be reporting incorrectly to the bureaus. Immediately after a discharge, it's important to pull a report and send disputes to the bureaus for any updates needed. Many creditors do not update anything once the debt is discharged.

Also, it's important you establish credit after the bankruptcy, so if you haven't already, start opening new credit trade lines. If you can't qualify for an unsecured credit card, open a secured card with a credit union. This is where you deposit funds equal to the credit limit. Regardless of how poor your score may be, your line is secured by the creditor with your deposit. This will help produce new, good reporting tradelines on credit.

If you have not done the two things above I mentioned, you should do it now so your credit looks better when you hit two years.
0 votes Thank Flag Link Thu Dec 10, 2009
You should speak to a mortgage professional so that they can look at your particular situation and give you a direct answer. This way you will know for sure. If you would like the name of someone, just send me an email.

Good luck!
Stefanie Cohen
Prudential Florida Realty
0 votes Thank Flag Link Thu Dec 10, 2009
FHA home loans have Easier Credit Qualifying Guidelines such as:
â—¦No minimum FICO score or credit score requirements.
â—¦FHA will allow a home purchase 2 year after a chapter 7 Bankruptcy.
â—¦FHA will allow a home purchase 3 years after a Foreclosure.
0 votes Thank Flag Link Thu Dec 10, 2009
I should have mentioned that, Bill. Wanting, you mentioned that you are doing well, but keep this in mind: ONE late after a bankruptcy and you are officially done.

Andrew is correct, but your explanation better not be that you had a baby or went through a divorce which turned you life upside down.
0 votes Thank Flag Link Thu Dec 10, 2009
One other thing...NEVER, EVER, EVER, EVER, EVER, NEVER, EVER be late on anything ever, ever again. Lenders will not forgive you for having a late payment, especially on a mortgage after a bankruptcy.
0 votes Thank Flag Link Thu Dec 10, 2009
The previous answer is excellent, but note that FHa will allow 1 yr out of BK with a valid explanation. A valid explanation would include a one time event that was generally out of your control like an illness or an accident that caused major medical issues.

Fot the most part on Chapter 7 you need 2 years since discharge and on Chapter 13 you need at least 12 months of perfect pay to the trustee and approval from the trustee to buy you out of it.

Andrew Kashella
0 votes Thank Flag Link Thu Dec 10, 2009
What type of bankrupcy? The following are basic guidlines for an FHA loan following a bankrupcy:

If it was a Chapter 7 you would need to wait two years from the date of the discharge.

If it was a Chapter 13, you would need to provide proof that you have been making all court appointed payments for a minimum of a 12 month period. You would also need to get written approval from the trustee to go ahead with a mortgage for any bank to even start on your file.

In either case (Chapter 7 or 13) you would have to have reestablished good credit, have a good job stability and have a good explanation as to why you had a bankrupcy-including why you think it won't happen again.

I hope this helps.
0 votes Thank Flag Link Thu Dec 10, 2009
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