Home Buying in Duluth>Question Details

nik1752, Home Buyer in Duluth, GA

What is the best way to try to get a house even though I filed Bankruptcy about 2 years ago? Or can I even get a house?

Asked by nik1752, Duluth, GA Mon Oct 8, 2012

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Rodney Mason’s answer
A lot will depend on what you have done since the Bankruptcy was filed. 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.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.

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

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote Thank Flag Link Mon Oct 8, 2012
Great answer by Rodney! Also, Ginny is correct that another option is owner financing or a lease/purchase (although you will need a down payment).

However, each deal is different with individual sellers having different tolerances for buyers with financial challenges. There are several investors out there right now buying properties to give opportunities to people in circumstances like yours.

Get a good agent, talk to a good mortgage broker. This is not something that you need to do on your own.

Good luck!

Katherine L. Morrison, Realtor
Team Realty Group
Alpharetta, GA
404-697-4626 (direct)
0 votes Thank Flag Link Mon Oct 8, 2012
You will either need to rent a while, do a lease / purchase, or find owner financing. Any of these will require a review of your credit report. You need to check it for errors, make sure to pay ALL your bills and utilities on time and that will show in your favor and also get your credit up faster! Good luck-there is light at the end of the tunnel.
0 votes Thank Flag Link Mon Oct 8, 2012
Like the previous comments, I would make a beeline to my local mortgage broker to discuss your specific situation. While generally there is a 3 year minimum wait period from a bankruptcy discharge, as Rodney states below, that can have some flexibility. By laying out your situation the the mortgage broker he/she can develop a strategy that you can work with to help you take advantage of the low interest rates and good valued homes. You are smart to look now if you can. We are seeing this market turn into a sellers market so prices are firming up, if not rising a bit. Jump in if you can before the good values are gone!

if you would like a referral to an excellent mortgage broker, let me know and I can send you details. Best of luck!

Rick Musto, Managing Broker
Buckhead Home Realty
0 votes Thank Flag Link Mon Oct 8, 2012
Yes, you have the opportunity to become a homeowner. The biggest question is how you have managed your credit since your (discharge) bankruptcy. I work with 5 excellent Lenders ie., Brand Mortgage, Prime Lending, Wells Fargo, Starkey Mortgage and Bank of America.

We can discuss which of these Lenders best fits your mortgage needs.

My contact information can be found on my Profile at Trulia.com.

I look forward to helping you become a Homeowner.

Have a Good Evening,

Rick payne
Keller Williams Realty
0 votes Thank Flag Link Mon Oct 8, 2012
Excellent answer, Rodney. Thumbs up! What if someone starts in Chapter 13 and changes to 7? Same as if they started in 7? I have one of those pending currently.

Michael Hammond




0 votes Thank Flag Link Mon Oct 8, 2012
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