Moving to Florida in 3 yrs. Currently 1 yr out of bankruptcy with a modified mortgage. Will sell current home. Will new mortgage be an option?

Asked by Mary Giebel, Wildwood, NJ Sun Feb 6, 2011

Owe $86000 or current home in rural PA with 10 acres. Bills are current and modified mortgage is reasonable. Houses in the area are going for @ $20000 an acre for property alone and no house. Not knowing what the market will be like in 3 yrs I am thinking conservatively. I am worried about the bankruotcy and getting a new mortage if needed. Are banks in Florida willing to work with people? We will be visiting the Ocal and surrounding areas in August and Tampa area in 2012. Orlando in 2013. We want to get an idea of areas and the job market for professionals. I am a special education teacher and my husband is a Foreman in transportation.

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Steve Vinson’s answer
Steve Vinson, , Florida
Sat Nov 19, 2011
With 2 years out of any BK, you can qualify with re-established credit. Because you reaffrimed the mortgage, it is not considered a new account therefore it won't be used for the qualification of re-established credit, however it will be used to strengthen the credit file. A good rule of thumb for doing this is any account that remains after a BK is not a viable acct, so you have to get at least 3 accounts, to add depth to the credit. Usualy 2 revolving, and at least 1 installment. They don't have to be big, but you will need a good pay history.

If you choose not to re-establish your credit the traditional way, but instead decide to pay cash for all your needs, you will still need alternative credit. But there is a caveat. Most if not all lenders are steering away from manual underwriting which means you're credit score will need to be above 620 to qualify for 3.5% down payment, so to make your life easier when you get ready, make sure you've re-established the tradional way. Here's another little not well kept secret... you'll be able to qualify for a USDA home loan in most areas of Florida outside the coastal areas, and that program is 100% financing as long as you don't own other property.

With that being said...go to this address.... it will give you more definitive answers.

Steve Vinson
Clearwater Federal Mortgage
NMLS #314005
0 votes
Carl Ashton, , Boca Raton, FL
Mon Feb 7, 2011
Our current requirements are 2 years out of ch 7 and the current debt in ch 13 paid up or 4 years no late payments.

Get CCards and charge $ 25.00 amd immediateley pay off to raise your credit score.
With a strong down payment you should be ok once the home is sold in PA.
0 votes
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Mon Feb 7, 2011
Hi, Scpa. If you filed a Chapter 7 a year ago and redeemed your current home, you have another year to go beofre you're eligible for a new mortgage. In the interim, make certian you have no 30 days + lates, collections or judgement that come after the bankrutpcy. If you do, under current guidelines, this will more than likely kill any chance of getting a new mortgage once your waiting period ends. Also make certain you've established at least 3 seasoned (min of 12 months old) credit lines as well. Your mortgage would be considered one. If that all you have, open up 2 more credit lines so that they will be 12 months old by the time your wait period ends. ALso make certain you never max them out and maintain a balance no higher than 25% on them at all times. If you do, your credit score we recuperate faster. Protect your credit at all costs.
0 votes
Realtor Kotz…, Agent, Windermere, FL
Mon Feb 7, 2011
The lending market changes daily. New rules and risk overrides continue to be conservative. We have no way to predict what the lending market will be in 3 years. I would suggest contacting a Florida lender to find out what their rules are on bankruptcy. Foreclosures have a rule of 5 years, but a bankruptcy is different.
Florida has a high unemployment rate; I can't say what it will be in three years. It's great that you are looking ahead. My suggestion is meeting with a professional who can help you reestablish your credit and go from there. Good Luck.
0 votes
Frank J.Petr…, , Lake Mary, FL
Mon Feb 7, 2011
With established credit.Good rule of thumb.
BK 13 = 1 year
BK 7 = 2 year
Foreclosure = 3 years

Of course it's always the lenders call.Never pay debts by cash ,always show proof of payments on time,ect..
Good Luck
Frank J.Petracca
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