Home Buying in 60120>Question Details

fatal_portra…, Home Buyer in Elgin, IL

Can I get a loan to buy a house if i have a bankruptcy?

Asked by fatal_portrait, Elgin, IL Tue Jan 22, 2013

I am in a bankruptcy due to my divorce and my home will be foreclosed unless I can get a loan on a house from a realtor and they want to do a short sale. I make $37000 a year and have been at my job for 13 years. If I can put down $10k-$15k could i get a loan on a $50k-$60k home?

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Sorry to hear of your situation. From what you describe, I would suggest renting a place before the BK is formally discharged. Low loan amount loans like you are asking for have , rate premiums because banks create a disincentive for under $50k 30 year loans.

best of luck, I dont work the Elgin area but find a good local agent you can trust.

if you like my answer, thumbs up and best answer me, thanks!
2 votes Thank Flag Link Wed Jan 23, 2013
Some tough times for you and very sorry to hear it. To answer your question, a realtor can't provide you a loan only a lender, morgage broker, etc...They can recommend such a person to you. The BK will have to be discharged along with some time if you want to move on to purchase another home with using a lender. Depending on your situation you might be elegible for a loan modification with your current home, it doesn't hurt to ask your primary mortgage provider. You could certainly ask a few different lenders sharing your situation with them, to see what there opinion is and finding out what you need to do to get over these hurdles to purchase in the future. Best thing to do is look at all options and go with the best route that works for you. Best of luck to you.
1 vote Thank Flag Link Wed Jan 23, 2013
It isn't possible to get a loan when you're going through a bankruptcy, however there are choices out there for you. The first step would be to speak with your BK lawyer about retaining your home. Perhaps he/ she can speak with your current lender to see if a modification is possible for you. The next step would be to speak with a few lenders, and be sure to chose one who deals with divorce and BK situations so you have the best possible advice. As many agents said below, renting may be the best option for you for a little while, and that will give you the opportunity to save even more money for a down payment on your next home. Short selling your current home is preferable to a foreclosure, so if you cannot stay where you are, that will be a good option for you financially. The main thing to remember is that many people are where you are at right now, and though it's tough, many of us have been through a rough divorce and there is light at the end of the tunnel! Hang in there, ask plenty of questions and advice, and trust that people will help you through this tough time.
0 votes Thank Flag Link Mon Feb 10, 2014
No bank will be able to issue a loan. You might be able to receive financing via a lender who uses private funds.

Contact: Jon Gordan
847.997.3660
0 votes Thank Flag Link Mon Apr 29, 2013
I've been working with several clients lately who are now back in the market after filing a previous BK. If you are in BK you can't get a mortgage. Current guidelines with the lenders with whom I work is pretty much 3 years across the board.

Contact me if you'd like a referral to a few local lenders.
0 votes Thank Flag Link Mon Apr 29, 2013
If you are currently in a chapter 7, you cannot get a loan. If you are in a chapter 13, that would be a different story. If your current home is behind, you cannot get a loan. Give me a call and I can let you know specifics.

Sean Cochran
Quality Mortgage Lending
630-470-6830 office
630-330-2229 cell
http://www.qmlending.com
0 votes Thank Flag Link Thu Jan 24, 2013
Fatal,
If you are currently in BK, any new loans would need to be approved by the court as well as the lender. Generally you must wait 2 years or more post discharge plus have re-established credit.
I say generally because the only one who can approve or deny your application is a Lender who has reviewed your situation more completely than you can supply here.
0 votes Thank Flag Link Tue Jan 22, 2013
Fatal,
I would encourage you to discuss this with a lender. A co-signer may not help, but if you bring every option you have available to the lender they may know of a current program we are not aware of.
The only answer you should trust will come directly from a lender who has your full situation in front of them. As a lender in the past, I saw many good people go through many tough situations, don't be ashamed. You can get past this and do fine if you take the right steps.
Flag Wed Jan 23, 2013
With my situation if I could get my mother to cosign for a loan would it be possible? She is retired and owns her house with my father.
Flag Tue Jan 22, 2013
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