Home Buying in Portland>Question Details

Shemomo, Both Buyer and Seller in Seattle, WA

More details as to reason for Chapter 7

Asked by Shemomo, Seattle, WA Sat May 7, 2011

Question was:
credit rating was 815 prior to filing,, and is already back up to 740... Is there a way to do this? I know I cannot do fha loans, but have heard there is a way with a substantial down payment which I would pull from IRA - reason for chapter 7 - I will add:

I was laid off in April 09... had bought house at peak of market..2 lenders... neither would work with me until I had a job. I am now 67 - No jobs and only 4 interviews in 2 years. Tried to keep up with mortgage for a year prior to filing. Last year started social security so monthly income just under 2k per month. Hence needing to pull a big chunk out of IRA to purchase - I will not have to pay penalty but tax bill would be high... I think my best bet is to wait until the 2 years are up and look for a house to rent with my dogs. Apartment living does not work for us. BTW I moved to Portland 7 months ago but couldnt figure out how to change my profile to reflect that. Thanks for answers so far

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I'd hate to see you pull from your IRA, that is good financial security to have. I agree with you it's probably better to hold off on purchasing for now. From your credit score it seems you're diligently working to re-position yourself again, so you're on your way. I realize that doesnt solve your present need to be in a place sufficient for the dogs. You might want to get in touch with several property managers. Often they know of rentals coming up soon & will be able to set you up in a suitable situation. Welcome To Portland, by the way!

P.S. If you feel urgent about getting a "good deal", prices are going to continue to decline through end of 2011 (earliest), & will remain low for awhile, so I want to encourage you that there will be opportunities available.
0 votes Thank Flag Link Mon May 9, 2011
FHA, USDA, and VA require 2 years to pass after a chapter 7 has been discharged, conventional loans require 4 years. Prolonged loss of employment beyond your control and are not likely to reoccur, such as closing or mergers are considered an extenuating circumstance, any other reason is open to interpretation by the underwriter. Financial mismanagement will not be considered.
0 votes Thank Flag Link Sat May 7, 2011
Maybe i should clarify, just in case... by contract I mean that you purchase the home but make the payments directly to the seller. Usually its amortized over 30 years so payments are reasonable, but has a requirement to pay off in a certain number of years, in this case the seller is willing to do 5 or less. You can always refinance into a standard loan and pay him off when you're ready, but you get the benefit of any increase in equity and the mortgage payment tax benefit.
0 votes Thank Flag Link Sat May 7, 2011
ah.. i was wondering about that! I saw the Seattle and then Portland, so I wasn't sure! Like I said not the end of the world to wait. But if you want to contact me directly I saw a very nice home in SE Portland the other day that was providing up to 5 years on a contract. that might be a good solution to get out of the apartment living and it was very clean, 3 bedroom, 1 bath, with a nice landscaped and fenced yard, single car garage. It was well under $200k and with your IRA funds, you could probably meet the down payment requirement.
There are a few deals like that around that could work for you, and then when your bankruptcy is up and your lender gives you a "go" you can refinance.
give me a call at 503-752-3435 or shoot me an email, and I'll be happy to help.
Thanks for the clarification on location!
0 votes Thank Flag Link Sat May 7, 2011
Again, I believe you would be best served to speak with Eric Newman of Summit Mortgage Corp. in Portland. He will know if there is any way and what your best plan would be ,whether it is to wait and for how long and what to do in the mean time to get ready to purchase. I also recommend spending some time with an accountant if that is possible.
Eric Newman- 503-698-5801
Bonny Crowley, ABR,CRS
Principal Broker/Owner
Portland Principal Realty
Web Reference: http://www.bonnycrowley.com
0 votes Thank Flag Link Sat May 7, 2011
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