Financing in 33173>Question Details

Regina, Home Buyer in New York, NY

What can I do (refinance?) after bankrupcy records are removed and my income is just $30000 a year?

Asked by Regina, New York, NY Fri Sep 26, 2008

I Bought a condominium for $245.000 in Fla. in 2005. At the time I had a bankruptcy and no job. Brokers saw a 20% down payment (from my IRA a package from my job and early retirement) got hungry and took advantage of my ignorance. Original debt was $198000 now owe $188.000. Of course, my mortgage became an ARM after 2 years - Actual interest rate is 9.25% and $1.527 monthly payment with a lot of difficulty. My monthly income is only $857 and annual taxes for this property $4000 plus adding to this monthly maintenance of $440.

I do not want to enter into reverse Mortgage. I do not understand it very well but does not sound good to me. I wanted to live in Fla and had to rented because otherwise I had lost it already - with that I pay maintenance and some goes to mortgage. Eventually I will lose if I do not find a solution. Tax payments are draining my IRA of which only $20,000 are left. That will go with other 3 more year of taxes.

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You can refinance your home after having a bankruptcy as long as it has been discharged for more than 2 years. As explained in the previous answer, most lenders will require that it is not only your primary residence but also that if your debt ratio is high you have a significant amount of reserves when refinancing your home to ensure that you do not deafult on the loan. With that being the case, your IRA could be used as a source of reserves as well as any savings account or anything that can be liquidated, even a life insurance policy. My wife is a loan officer with Apex lending in FL and may be able to answer any additional questions that you may have. Her website is and her name is Jacinta. She can be reached at 877-662-7066.


Andre Shambley

Luxury Home Specialist
Office: 305-931-8920 ext 245
Mobile: 305-788-6643
Fax: 305-931-9853

"Given the degree of exposure I can provide, if I can't sell your one can!"
0 votes Thank Flag Link Fri Sep 26, 2008
Regina, I have to agree with Jill's overall answer. There are programs available to help property owners in your situation, but most require that the property is your primary residence. Your 2005 bankruptcy complicates matters as well. But if you would like to give me a call, I can refer you to an attorney who specifically handles these types of situations. My number is 305-801-3133.
0 votes Thank Flag Link Fri Sep 26, 2008
I think you are going to have to face facts. You are in over your head. You have a property that you cannot afford. It has drained your money from your retirement and jepordized your retirement. You are either going to have to sell it or walk away from it and let the bank foreclose on it. I would also advise you to talk with a Financial Counselor. (you can Google Financial Counseling services). In my experience with my clients, some people have just never been taught how to make good financial decisions. There is usually an up front cost to these services but people are very happy they do it afterwards. People who have had multiple bankruptcies and financial failures go on to being very financial savvy. Good Luck.
0 votes Thank Flag Link Fri Sep 26, 2008
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