Home Buying in 30349>Question Details

Cottonality, Other/Just Looking in

I filed chapter 13 last year. What can I do to get prepared? when will a bank take me serious?

Asked by Cottonality, Thu Jan 23, 2014

Help the community by answering this question:


if your BK 13 did not involve a home (Foreclosure via Deed-in-Lieu*or handed back the home*) then the rules on a BK 13 state that you can qualify for an FHA loan in as little as 1 year from your Filing date. Permission from your Trustee and a clean payment record are a must.

Also after any major derogatory period you may have to show RE-Established Credit. meaning if you did not Re-Affirm any of your current debts, then you will have to show 3 new trade lines/lines of credit, each must have 12 months clean payment history. If you did Re-Affirm some of your debts they may count as part of the required 3 trade/credit lines.

Feel free to call for a more concise review of your situation and instructions on how to go about establishing new Credit or trade lines.

Best Wishes,

Rob Robbins
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
Office 678-578-7613
Cell 404-932-5353
1 vote Thank Flag Link Thu Jan 23, 2014
You can buy as soon as 1 year, but you need to talk to a lender about if the Back to Work program will work for you. Other than that depends on the loan type you want, I have a Lender that's all over the new changes and can assist with giving you information tailored to your situation.
1 vote Thank Flag Link Thu Jan 23, 2014
Cottonality; The normal answer to your question depends on the type of financing you are seeking and the circumstances of your Bankruptcy. As a Mortgage Banker for over 15 years it comes down to this in a nutshell. If you are going with a Government backed loan( FHA,VA) there is no additional waiting period but you must credit qualify. If there was a home included in the bankrutcy and it was either foreclosed or sold as a shortsale you must wait up to 3 years from the date of the transfer not the sale date. The transfer is when the bank actually records the deed in their name.
If you are thinking about going Conventional other rules apply that would require longer waiting period and much larger down payments.

As for qualifing your first step you need to do is have some one look at your credit report and go over it with you. I can tell you that regardless of how good your attorney was that it will have several errors. You will more than likely have a few weeks of clearing these issues up with the bureaus. Your next step is working on your credit score. Lenders today have minimum credit score requirements of around 640. The lenders that claim to have the ability to close a loan with much lower scores of around 580 have credit overlays that will make it extremely difficult to qualify.

Feel free to contact me anytime 7 days a week I am here to help you.

Marc D’Angelo
Mortgage Banker
678.442.3405 Office
678.985.6834 Fax
404.925.8291 Cell
apply online: mdangelo.brandmortgage.com
0 votes Thank Flag Link Fri Feb 7, 2014
My Understanding is the same as what Robert Robbins wrote. However, rules and requirements seem to be changing weekly these days.

Best of Luck,

David Rudd
Kindred Real Estate
0 votes Thank Flag Link Thu Feb 6, 2014
There are various credit reporters that will allow you to pull your credit without receiving an inquiry for free, if you want to see the Fico Score it will cost you a few bucks.
If you want to remove the Bankruptcy we offer a service that will remove the BK and any other derogatory item that you might have left showing on your credit report. The process takes 30 to 60 days. The service is guaranteed to preform or you get your money back.
Can you imagine getting a fresh start. This works and it works every time.
Harold Lear
0 votes Thank Flag Link Thu Feb 6, 2014
Your best bet is to speak to a mortgage broker, lay your cards on the table and ask what you will need to do to affect your ability to arrive at mortgagability.
0 votes Thank Flag Link Thu Feb 6, 2014
FHA mortgages are the least restrictive for a previous bankruptcy. HUD requires that a minimum of 24 months must have elapsed from the DISCHARGE date of a Chapter 7 Bankruptcy before a borrower can be eligible for an FHA mortgage.

For a Chapter 13 Bankruptcy, then you must have made at least 12 on time payments. Additionally, you must also have permission to purchase from the Bankruptcy Court.

In the time since the Bankruptcy, there should be no new derogatory items such as late payments, collection accounts, liens, judgments, etc. Having late payments after a Bankruptcy is often viewed as a disregard for the importance of credit. It also reflects that you are still having financial struggles.

If a mortgage was included in the Bankruptcy, HUD requires that you must wait at least 36 months from the foreclosure date to be eligible for an FHA mortgage. Sometimes, the foreclosure happens well after the Discharge Date of the Bankruptcy. If the mortgage was not re-affirmed, there is not much that can be done until the property get foreclosed on. If you have re-affirmed the mortgage, then we just have to document an on time payment history for the account.

Also, if the original mortgage was a government backed loan (i.e. FHA, VA, USDA), you must wait at least 36 months from the date that HUD paid the claim on the defaulted mortgage. This can sometimes be months after the original Foreclosure Date Until the 36 months on the claim has passed, you will not have a clean CAVIRS report which is required for an FHA mortgage.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. Once you are ready to get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com to get started.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Thu Jan 23, 2014
We have the back to work program that woud allow you to buy now in most cases. Call me for details. Amy 404-906-1435
0 votes Thank Flag Link Thu Jan 23, 2014
If you want to buy a home, you'll need to show that you have a good credit and a stable payment history. Start to re-establish your credit by paying your bills on time and not having a balance on your credit cards. Typically, you'll need a couple of years of good payment history to raise your credit score. You will also need to start saving for your down payment.

Best Wishes.

Jen and Mark Bowman
Keller Williams on the Water
0 votes Thank Flag Link Thu Jan 23, 2014
You are going to need to wait a few years and keep a good credit history to get a loan rolling. Good luck!
0 votes Thank Flag Link Thu Jan 23, 2014
5 Factors That Decide Your Credit Score
Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

Fred Yancy, Broker
Harry Norman Realtors
(678) 799-4663
0 votes Thank Flag Link Thu Jan 23, 2014
I am sorry but I do not understand your question. Are you looking to purchase? If you filed for foreclosure, you can wait up to 7 years to purchase. I would suggest you speak to a lending institution for more information.
0 votes Thank Flag Link Thu Jan 23, 2014
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