Bankruptcy discharged 2009.. House not foreclosed yet, no short sale or deed in lieu option. I want to buy a house, advise?

Asked by R. Mapa, Minneapolis, MN Tue Dec 27, 2011

Help the community by answering this question:

+ web reference
Web reference:

Answers

13
Susan Hoffla…, Agent, Shoreview, MN
Mon Jan 2, 2012
Yes, R, I would definitely take heed about jumping from the frying pan in to the fire with regard to buying another property. Any agent or mortgage person will need to have answers to lots more questions before they can even attempt to answer your question here.

While agree with the "no negativity", I also must say to Mark that we all agreed when signing on to Trulia that we would not use this Q & A forum as a way to advertise our own services. We've all agreed to answer the question posed and not push advertising ourselves.
Web Reference:  http://www.homestosellmn.com
1 vote
Annette Levi…, , New York, NY
Wed Dec 28, 2011
Mark I said if R hasn't paid his mortgage he can't buy. If R has re established credit, he can. This not being disrespectful but truthful. Realtors wqho rthink buyers who don't pay their bills can get a mortgage or disllusional. Many homeowners are in trouble because they went over their heads. My job is to make people aware of what they can afford.
1 vote
Annette Levi…, , New York, NY
Wed Dec 28, 2011
I'm assuming that when you say house not foreclosed yet means you are not paying your mortgage. If that is right then you are not a home buyer. You can qualify for a mortgage after a bankruptcy if you reestablish your credit which means pay everything on time. If you are late on your mortgage after a bankruptcy then you have not reestablished credit.
1 vote
Scott Godzyk, Agent, Manchester, NH
Wed Mar 28, 2012
It will depend if your house was included in your bankruptcy, if not they may be able to hold you liable for the short fall. You should ask your bankruptcy attorney as well as a local and trusted loan officer who can look at your credit and help you with your situation. Good Luck
Web Reference:  http://www.ScottSellsNH.com
0 votes
Phil, Agent, Alexandria, VA
Wed Mar 28, 2012
Save up your money and buy with cash. You should have no problems, then.
0 votes
Rob Weber, Mortgage Broker Or Lender, Plainfield, IL
Wed Mar 28, 2012
Having found out the hard way being a mortgage banker and having many investors to choose from for end financing, I can tell you that a conventional approach for a financed mortgage is likely out of reach at this time. I actually sent up a question identical to this and the investor response was 'no' across the board. They wanted to see the home's actual foreclosure seasoned three years (for new FHA financing, +1 year for conventional). Since the home had not foreclosed yet due to the delay from the servicer, that put the (former) homeowner in a jam because under normal circumstances they'd have been able to buy again once that foreclosure was seasoned three years.

That being said, you "may" find a lender who'd allow you to proceed since the bk is seasoned three years and the pseudo-deed-in-lieu. This is a very gray area with mortgage servicing and foreclosure proceedings right now, we'll probably see more on this in the news in the near future. You may have to look long and hard. If all else fails, try a local bank or credit union, you may have better luck there with a significant down payment and re-established, solid credit.

If all else fails, there's always a rent-to-own or contract for deed option as mentioned previously.

P.S Mark, this isn't an advertising forum, Trulia allows you to purchase advertising space if you'd like to market. Anyone interested in contacting you can find your info in your profile or send you a message through there. I actually started giving people negative votes who do what you did but unfortunately you can't have less than a 0 vote rating. Making a/couple examples to illustrate a point is fine but it's clear your intentions were otherwise

P.P.S. Sorry to anyone who read this already, I had to re-post, I made some typos that made my response confusing.
Web Reference:  http://RobWeber.com
0 votes
Kris Lindahl…, Agent, Minneapolis, MN
Mon Mar 26, 2012
Most likely your only option to purchase would be if you have cash for the purchase.


Kris Lindahl, CRS, CDPE, SFR
Edina Realty
763.607.1415
krislindahl@edinarealty.com
0 votes
Mark Claesse…, Agent, Coon Rapids, MN
Wed Dec 28, 2011
Annette, with all due respect, first of all, R. has not yet stated that he/she was late on any payments. They also did not discuss the terms of the bankruptcy nor their current payment situation. Secondly, to say to this person "YOU ARE NOT A HOME BUYER" is, quite frankly, not just a far out judgment call on your part, but it is quite disrespectful. You don't know this person and you don't know their situation.

As I stated earlier (below) I have had a number of people come from this Trulia forum that were "beat up" with agents and brokers and loan officers telling them what they "can't' do. And unfortunately this advice what was dished out by seemingly knowledgeable people was false information. On the other hand, although I don't claim to walk on water, fortunately these people contact me and/or my loan officer and actually had someone take a good and deep look at their situation and found out that they CAN purchase a home, even when they were told.... "NOT gonna happen".

I respect you as part of our industry, a broker and even as a VIP member. All I ask is that you be very careful the kinds of negative things you tell these people that come on here asking for guidance. Just look at R. Mapa's closing comment. She/he said, "I want to buy a home, advice?" She came to us for help and guidance and is apparently looking for someone to help figure out the situation at hand, what are some of the options available, and if nothing else ..... some ADVICE. Maybe R. needs to work with Heartland and get her credit fixed. Maybe R. needs to have a short sale and start over. But maybe, just maybe, Annette......R. Mapa is a well-intentioned person...in a tight spot....and can go out right now and purchase a new home and do the short sale at the same time. did you think of that?

I just closed one with someone from Trulia who simply needed some advice, some legal counsel from a good lawyer.....and we did the short sale and closed on their new home that they did on a contract for deed. And just for the record....we closed on the contract for deed AND they moved into their new home way before the short sale was even completed. And yet dozens of agents and loan officers told him and his wife; "I am sorry. This is 100% impossible. You cannot do this."

But it did work out.

Mark
0 votes
Mary Jo Quay, Agent, Burnsville, MN
Tue Dec 27, 2011
Dear R,

It isn't the word 'forclosure' that damages your ability to qualify for the loan, it is numerous late mortgage payments on the credit report. You can qualify for an FHA loan 2 years after the bankruptcy is discharged IF
your credit shows well since then. You wouldn't want to disclose your credit standing in a public forum, but it would be a good move to seek advice from a credit restoration professional like Joe McGlynn at United Credit Consultants. If you could raise your credit score to qualify for a loan within a few months, it would be worth the effort. When you start over, you want to start over fresh, and secure about where you are going.

Your best option if you want to buy a house right now would be a contract for deed. With a contract for deed, you will need a hefty downpayment, but you would be an owner. Contracts are for a term, and you would refinance at the end of the term. However, if you could raise your credit score before you buy, you would only be required to make the minimum down payment, and not have to refinance.
0 votes
Mark Claesse…, Agent, Coon Rapids, MN
Tue Dec 27, 2011
Great question, R. and a couple fine answers from my colleagues below. Franks was very correct in stating below that it truly is difficult to have a simple or direct answer to your question with the limited knowledge you have provided us with. But at least you gave us a little bit of insight.

I am extremely hopeful for you, however, even with limited knowledge. There is a great need on my part to have a full explanation of your situation, along with a very frank conversation with my loan specialist to determine your options.

For the sake of time let me just say this. I have a great amount of expertise in this area, especially when it involves short sales and sales options, and even moreso when it comes to being strategic with not only the sale of your house but working with a new purchase WHILE letting your current house go. And I am quite seasoned now in working with purchasing by doing contracts for deed, which may be an exclellent option for you. I will humbly say that there have been several people like yourself that have posted similar questions on here in the past and I will gladly say that some of them are already in homes, and two more have just been approved for mortgages. All four of these buyers contacted me first here on Trulia and all four basically had "no hope" and were turned down by many sources who told them, "Sorry, I just can't help you get a house."

Yes, they all have some sad situations. But so far I, and my loan officer, have been able to get them in a home instead of them paying rent for 2-3 more years and feeling all horrible about things and in two cases they were losing their homes. The homes have sold, and they are in wonderful homes. And the other two will be very soon!

If you have any questions feel free to call. Just click on my website below.

Have a great day!

Mark
0 votes
Elizabeth Fu…, Agent, Wayzata, MN
Tue Dec 27, 2011
The options answer 2 provides are all good. Start with your agent; he or she will take all the necessary information, help you fiind a great loan provider (we all know many we trust and who are real experts) and give you the very best potentials for your particular situration. Good Luck! Liz, 612-986-4105
0 votes
Cameron Piper, Agent, Forest Lake, MN
Tue Dec 27, 2011
I have an excellent loan officer who has found himself working quite a bit with people in similar situations. If you would like to contact me (see my profile) I can have him give you a call.

If you are still making payments on the home then they aren't likely to foreclose. A short sale is typically very possible after a bankruptcy so there must be some outlying circumstance that prevents that. Ultimately you really only have a couple of options to buy a house.

1. Save up cash
2. Find a willing CD seller
3. Meet conforming guidelines for obtaining a loan after a bankruptcy - a good loan officer can walk you through that

Cameron Piper
Coldwell Banker Burnet
licensed MN Broker
Web Reference:  http://www.CamPiper.com
0 votes
Frank D'Ange…, , Minneapolis, MN
Tue Dec 27, 2011
Wow R.
There are several areas of concern that require more information and disclosure from you.
I don't think many might come out and make specific recommendations or provide any advice about your existing situation without more disclsoure/details.
Please do not hesitate to call.
612.281.1033
Web Reference:  http://www.AllMetroHomes.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more