I can certainly give you some advice as to how to get your credit started and give you more information on what we as lenders look for. This way you'll be better prepared to finance down the line.
Sterling National Bank
Loans processed with standard documentation require the following:
Any derogatory credit must be explained. Letters of explanation from the borrower must be in their own words and handwriting. (May be typed, with the borrower's signature.)
Accounts that are reported â€œpast dueâ€ (not reported as collection accounts) must be brought current at or before closing.
Credit inquiries within the past 90 days of the date the credit report is pulled must be fully explained. The borrower must explain the purpose and the outcome of each inquiry. If applicable, provide documentation evidencing no new accounts.
Any other accounts outstanding and not referenced on the credit report must be directly verified. This includes loans against employee savings plans and private loans.
Two years from discharge date; evidence the applicants have demonstrated ability to handle their credit affairs; and that applicants have re-established acceptable credit.
Discharged less than two (2) years â€“ NOT eligible.
A satisfactory performance history for one year of the pay-out period and MUST be discharged . The borrower must receive written permission from the court to enter into the mortgage transaction.
Some of the info in a recent post may help, see the link below. Good luck,
When did you file BK? Is the BK finalized?
Regarding the loan modification, the min $3300 per month for the first 5 years most likely includes the taxes and insurance, the principle and interest is about $2370 for the first 5 years, so the rest would be the taxes and insurance.
To answer your questions:
Q1, It all depends when did you file the BK, please contact a loan officer to answer those questions, she/he will be able to run your credit report and they can give you a better answer as to when would you be eligible for a loan.
Q2, If you don't get a loan within a year, you don't have to keep your house if you chose not to. You can sell, and rent until you are eligible for a loan. When finding a rental remember, that you credit score might be low due to BK and delinquent on your mortgage, so the landlord might be asking you for pre-payment on the rent for 2-6 months (not necessary, but some landlord do ask)
Q3, Did you file Chapter 7 or 13? You might be able to keep your house, but for a better answer, YES, definitely contact an attorney to answer all your legal questions.
Barbara E. Nowak
After 45 months non payment I applied for Loan modification, and after 3 months Trial period I got an offer from bank. At the time of missing first payment My loan amount was 415K, Taxes 8000, IR 6.75,Insurance 2000/year.
Home equity 35K
Now bank offer me with
a new loan amount of 600K (and said it can be increase depends on when I will accept offer)
Term 30 Years
IR first 5 years 2.5, next 5 years 3.0 rest of life 3.85
Min payment 3300.00. did not mention it is including taxes and ins (i am supposing it)
My house needs 30-50K repair at this point
Average house value in my town similar to my house 370-400K,
I can pay monthly mortgage , but I am paying 650 for a house while I can buy a house in 370K.. I think there is no major set back I will be able to make a 10% down in a year
Q1, may i able to get a loan when I am ready, so I can let this house to go?
Q2, If I am not able to get a loan with in a year then do I have to keep the house
Q3, DO I need some one (attorney, I don't have good experience for loan modification attorney, I did all by my self ) to negotiate with bank to set a new loan on market value ( and amount owed will be a part of BK).
I am assuming that if I let the house to go, it will be a part of BK, and bank will sell at market value. so he can set a loan amount to me a new market value.
Thanks all of you
Once you file a bankruptcy, there are a lot of issues it depends on. Please call Dominick Sutera of Academy Mortgage Corp...he is the Director. I use him for my personal and professional business. He is an educator and will be happy to explain what you can expect in the future and what you might need to be doing now to enhance that future.
Dominick can be reached at dsutera@BankAMC.com or 516-249-4800.
Bankruptcy may display on your credit for 10 years from the date of filing. It doesn't mean you have to wait 10 years post bankruptcy to buy a home. It will depend on your creditworthiness after BK. You will definitely be able to buy a home in the future, but to receive a better answer, I would speak to a mortgage professional.
Barbara E. Nowak