Home Buying in 66106>Question Details

Stephen N Ri…, Home Buyer in Kansas City, KS

Husband and I filed Ch.13 bankruptcy in April 2013 and need to move! Is there ANY hope? Rent to Own? Or lenders that are willing to listen?

Asked by Stephen N Rikkiann Guerrero, Kansas City, KS Wed Jun 12, 2013

We both have stable jobs with good income. I have never owned a home while he let his go in our bankruptcy while his ex is still in the home with his kids.

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4
You have very limited options, - one actually - renting - this is possible with the right landlord.

Run in the opposite direction from any idea of "rent to own" - I won't take up space now telling you about all the dangers lurking for you (or anyone) in that arrangement .

You will not be approved for a loan, so buying is out of the question for the time being.
Truthfully, until you get your finances straightened out, you shouldn't even think of taking on more debt at this time(even if a seller were willing to offer you financing)

You need to concentrate on finding a landlord (not a management company, but it can't hurt to try) who will be sympathetic to your plight and happy to hear your jobs/incomes are stable.

If you work with an agent, they can help you find that landlord, and perhaps suggest ways you can offer him or her piece of mind in renting to you under the current circumstances. Maybe some upfront additional rent if it's allowed in your state (NJ doesn't allow that above 1.5 months rent). A letter explaining your situation might also prove useful. Personal references may come in handy, too.

May we assume you have money for the security deposit and any additional required deposits/upfront rent? If you don't, then you really need to sit down with an agent and try to figure it out.

Best wishes...........
0 votes Thank Flag Link Thu Jun 13, 2013
As Curly Sue below stated, it is possible, but only for you to apply for a FHA, VA or USDA home loan. You can be considered for financing as early as 12 months providing you have the permission from the court appointed trustee. Since your husband had a foreclosure, he is toast for 2 years for VA, 3 years for FHA, and up to 7 years for Conventional because of the double wammy (BK and Foreclosure).

Since he lost a home in foreclosure, you will find MANY MANY lenders who will try to punish you for his default, but the guidelines state that one spouses credit cannot not be used against another. If you live in a Community Property State (which I don't believe Kansas is) the debts of your spouse can be added to your debt ratio for qualification purposes.

Hope this has been helpful,

Best of Luck!
0 votes Thank Flag Link Thu Jun 13, 2013
Did your Lawyer sugarcoat all the facts about a BK?
We get that a lot.
Forget about Buying, and forget about Lease/Option.
Drive around some neighborhoods, looking for FOR RENT signs. Try to find ones that are handled by the Owner, not a Management company.
Be open and honest, tell your story. If the Owner is not sympathetic, you probably didn't want them as your landlord anyway. Keep trying.
0 votes Thank Flag Link Thu Jun 13, 2013
You'll need at least 12 months of payments under Chapter 13. You're probably looking at 3 years after discharge of the BK if the home forecloses.
0 votes Thank Flag Link Thu Jun 13, 2013
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