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Jam.def%40gm…, Home Buyer in

My house was included in bankruptcy not reaffirmed but I stayed and now I have to walk alway. What are my home buying options?

Asked by Jam.def%40gmail.com, Fri Jul 27, 2012

It has been over two years since I went through chapter 7 bankruptcy. I chose to stay in my house but my lender did not give me the option to reaffirm the debt. Now I have to walk away. Could I still be considered a first time home buyer? Would it be possible to even get a mortgage in my situation?

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It isn’t as simple as anyone in the industry will normally share, everyone focuses on the minimum timeline and credit score threshold, in addition to those you must meet all of the other requirements as well which will be tricky after a BK.

DO NOT dispute accurate information on your credit report just because it is negative in nature, that is a serious crime regardless of what the “credit repair” experts tell you.
FHA will be the most forgiving avenue available to most people, in addition to the two items mentioned above you must also meet their TOTAL Scorecard, something rarely discussed by LO’s.

Here are a few items I thought may help:

TRADE LINE REQUIREMENT:
The borrower must have a minimum of at least three (3) current, open trade lines with 12 months history of being paid as agreed, regardless of AUS findings. Alternative trades are acceptable with AUS approval. Examples of alternative trades include utilities, auto insurance and rent.

Rental Verification
If the borrower is currently renting, the rental history must be verified. Rental references on the credit report are acceptable if a rating is provided. A minimum of 12 months must be verified via cancelled checks and/or bank statements if renting from an individual or VOR if completed by management company.

Judgments
Must be paid in full or have a satisfactory repayment plan is in effect at time of application, established at least 12 months and there have been no late payments on the plan (documentation must be provided to prove satisfactory payments).

Bankruptcy
Chapter 7
• 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 – NOT eligible


Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jul 30, 2012
If the house is in the husbands name and bought before he was married, how does that affect his wife's buying ability? Her name was never on the mortgage. Can they go after someones pension or bank account?
0 votes Thank Flag Link Mon Jul 30, 2012
Hi Jam,

Unfortunately you're not going to be eligible for any type of traditional financing like FHA, USDA, VA or conventional, until 2-3+ years (depending on the loan program) after the bank takes back title.
0 votes Thank Flag Link Fri Jul 27, 2012
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