Market Conditions in 90008>Question Details

Ladybugbabyh…, Other/Just Looking in 90008

Buying 2nd house after modification history (how will it affect us)

Asked by Ladybugbabyhouse, 90008 Mon Jul 26, 2010

My husband and I bought a duplex in 2006 for $550k. We were furloughed and fell behind on our payments. Fortunately, our payment was modified to a 30yr fixed @ 3.5 %. We are getting back on track we will be debt free next year. We would like to buy another house in 5 years due to LAUSD (would like to get out of this area into a better school system). Will we be able to purchase another house with a history of late payments on our credit report 5 yrs from now? We would have enough for a 20% down.

Help the community by answering this question:

Answers

3
I do not feel you will have a problem. Just continue to pay your mortgages on time, build up your liquid assets such as savings account balance and accelerate the pay-off of your primary residence to escalate the recovery of your equity. Then call me.

Over the past few years, I have given a solid guideline to home owners recovering from income curtailment and distressed modifications on their primary residences.

Dinece Carmichael
Carrington Mortgage Services
Direct at 310-567-8938
0 votes Thank Flag Link Sat May 11, 2013
As long as your credit has a score above 580, you may even be able to purchase another home with 10% down. 20% will make it even easier. As long as your income stays the same or improves, there is no reason you have to wait 5 years. It may even be better to get on it sooner for personal reasons if you do not like where you are now.

Our mortgage department can help you see what you would qualify for calling 800-640-8798.

Daniel Klein
Broker
Over 1 Billion Sold
800-640-8798
0 votes Thank Flag Link Wed Jan 4, 2012
Five years is a liftime away in mortgage years right now, with the guidelines constantly changing and tightening up. The one thing that always comes back is that after we bottom out, interest rates will rise and banks will start loaning more money when it becomes profitable to do so.

In the terms of averages, in the past the banks wanted to see 2 years of on time payments. In five years if you keep it up your credit score shall be as good as ever. Where as you are putting 20% down you should not have any problems. The lates are no where near as bad if you had a foreclosure which could stay for 7-10 years.

When it is time meet with a local and trusted mortgage broker and they can prequailify you at no cost and let you know what programs are available to you.

Good luck with your future.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Jul 26, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer