Foreclosure in Fort Mohave>Question Details

Judy, Home Buyer in Fort Mohave, AZ

I recently had a bankruptcy, will i be able to qualify for forclosure? I make 45,000. yr have 5000 to put down

Asked by Judy, Fort Mohave, AZ Mon May 23, 2011

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8
FHA timeline is at least two years for a bankruptcy before they will give a loan. Call a local bank and a credit union to see if they have any options.
1 vote Thank Flag Link Tue May 24, 2011
2 years from the date it was discharged. If you included a home in the bankrupcy than you have to wait 3 years. Keep in mind even after waiting the the 2-3 years you still must meet the lenders credit score requirements for the loan. Rebuilding your credit scores after a bankrupcy takes a lot of patience. Also if you have a late payment after the bankrupcy the lender will make you wait another year from the late payment..so make sure you are on top of everything! Read the attached blog to get additional ideas to help increase your credit score! Good Luck
0 votes Thank Flag Link Tue May 31, 2011
The only option that I have seen involves smaller banks when someone is buying one of their foreclosures. The keep the loan in house and the terms I have seen are a 30 year amortization, 3-5 year arm at 6-5-7.5%, with a down payment of 10-20%. Other factors which influence the bank are the reason for the bankruptcy, current debt to income and pending legal issues. Good Luck, hope this helps.
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Tue May 31, 2011
Judy,
Gregorio (below) has given you the best advice here. Get with a mortgage consultant. They can give you a good idea of where you stand. They will normally give you a free consultation. If you were in my area I could send you to several mortgage consultants that could help. Good luck to you.
0 votes Thank Flag Link Mon May 30, 2011
Dear Judy,
Bankruptcy will stay on your credit for 7-10 years and will prevent you from getting a home loan with traditional financing. If you want to purchase a home now and have the money each month to make payments - you will need to do some creative financing. Find a home where the seller will carry-back the loan. This is one way to get back into buying versus renting. You may call me to help find the perfect situation you are looking for!!!
0 votes Thank Flag Link Tue May 24, 2011
Actual, Non-Made-Up Guidelines for Bankruptcy:

FHA
A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from
obtaining an FHA-insured mortgage if at least two years have elapsed since
the date of the discharge of the bankruptcy. During this time, the borrower
must have
• re-established good credit, or
• chosen not to incur new credit obligations.
An elapsed period of less than two years, but not less than 12 months, may be
acceptable for an FHA-insured mortgage, if the borrower
• can show that the bankruptcy was caused by extenuating circumstances
beyond his/her control, and
• has since exhibited a documented ability to manage his/her financial affairs
in a responsible manner.
_____________________________

FHA
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an
FHA-insured mortgage, provided that the lender documents that
• one year of the pay-out period under the bankruptcy has elapsed
• the borrower’s payment performance has been satisfactory and all required
payments have been made on time, and
• the borrower has received written permission from bankruptcy court to enter
into the mortgage transaction.

TOTAL Scorecard Accept/Approve Recommendation
Lender documentation must show two years from the discharge date of a
Chapter 13 bankruptcy. If the Chapter 13 bankruptcy has not been discharged
for a minimum period of two years, the loan must be downgraded to a Refer
and evaluated by a Direct Endorsement (DE) underwriter.

___________________________

Conforming
Bankruptcy (Chapter 7 or Chapter 11)
A four-year waiting period is required, measured from the discharge or dismissal date of the
bankruptcy action.
Exceptions for Extenuating Circumstances
A two-year waiting period is permitted if extenuating circumstances can be documented, and is
measured from the discharge or dismissal date of the bankruptcy action.
___________________________________

Conforming
Bankruptcy (Chapter 13)
A distinction is made between Chapter 13 bankruptcies that were discharged and those that
were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as
follows:
• two years from the discharge date, or
• four years from the dismissal date.
The shorter waiting period based on the discharge date recognizes that borrowers have already
met a portion of the waiting period within the time needed for the successful completion of a
Chapter 13 plan and subsequent discharge.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Tue May 24, 2011
The general rule of thumb is that you will have to wait three years from the date the bankruptcy was discharged to be eligible for a mortgage on another home. That is provided you take measures right away to rebuild your credit rating, such as obtaining a secured credit card and using it wisely during those three years and reviewing your credit report regularly for false information.
0 votes Thank Flag Link Tue May 24, 2011
Dear Judy:

No conventional loans will require you to wait several years.

You will need more of a down payment for most seller carry financing scenarios.

Do you have a co-signor?

You may wish to contact a lender and find out exactly the things you need to do to improve your credit score and develop a timeline to apply for a mortgage.

Put some cash away. You may be able to buy a seller may carry financing home with 15-20% down.

If you have any questions just ask.

Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart
Scottsdale
Web Reference: http://ArizonaHomesLand.com
0 votes Thank Flag Link Mon May 23, 2011
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