Is it possible to get a $160K loan for a purchase after a recent foreclosure?

Asked by Rebound, Maryland Wed Jul 23, 2008

Is anyone out there willing to 2nd chance a motivated buyer? Net monthly is about $3.6K, with less than $2K in debt. fico is in the dump right now. Working to bring it up. Thanks for any advice.

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7
A. Weaver, , Atlanta, GA
Tue Sep 16, 2008
Stay away from the lease purchase options! They're not for everybody; especially if you know you have the high probability (%) of being denied for another home loan, before the terms of agreement (lease option to purchase) expired to secure the financing necessary, to exercise the option of purchasing the home. Pay off your debt, put your money in money market savings account (build up down payment) and reestablish your credit worthiness. Rent for a while, because of the way the current real estate market situation is and some of the financial institutions going belly up (wherever you're considering purchasing) it's not going to suddenly change and start peaking in the next 3-5 years as many will hope to see.

Sellers are having a bad enough time selling their property with the stock of foreclosure homes (depending on area) on the market that they're competing against, real estate agents can't moving inventory quickly as before and not enough buyers in the market that are ready to buy or qualified to buy or their being smart and waiting for right home and right deal (location, location, location) to come along. So sit just back and chill!
0 votes
Julie, , Chattanooga, TN
Thu Jul 31, 2008
All these answers seem harsh, Lending did get way off track in the last 10 ten years with the non conforming and arm loans. All those programs are long gone now and in the past 12 months more and more programs have dissappeared . Now it's like the good ole days again where borrowers actually have to qualify and have a down payment. The good news is that after your foreclosure is behind you for three years you could qualify for a government back loan, such as FHA and you would only need limited credit they will even let you use your light bill as a tradeline, also as little as 3.50% for a down payment.. They still have minimum credit score guidelines so you will have time to work on your score. Most companies are hiring credit repair specialist to help guide their customers so they will be ready to purchase by the time they find the perfect home.

Julie Oliver
Mortgage Investors Group
423 285 0516
Web Reference:  http://migonline.com
0 votes
Telmo Bermeo, Agent, Sandy Springs, GA
Sat Jul 26, 2008
How about looking at a lease purchase homes, most of the lease purchase home sellers are very motivated and you may work a deal while you get rid off your debt. Here is a list of lease purchase homes
http://www.kstrealty.com/lease-purchase/
Web Reference:  http://www.kstrealty.com
0 votes
Sarah S. Tur…, Home Owner, Atlanta, GA
Fri Jul 25, 2008
Rebound - you will need at least three years of debt free living, and a high credit score before a reliable lender will take a chance on you. This isn't the same market that lended you money however many years ago, whenever anybody could get financing, with no money down, any kind of credit score, and any sort of debt to income ratio. Get your debt to zero, pay your bills on time, save up some money for a down payment, work your credit score up, and rent out a place for a few years. I hate to say it, (because it could be your Lender's fault and the terms of your previous loan that got you here), but you're the one who neglected to pay your mortgage for months upon months, and now it's time to face the consequences. You can understand why a replicable lender might want to see you succeed at becoming financially stable, before lending you a thing... right?

Also, make sure the next time you take out a loan - that you get a good faith estimate, and the payments, and insurance are at or below what you can reasonably afford. Do not get an adjustable rate mortgage (ARM), please stay away from ARMs, they are leading to more foreclosures than you can imagine.

Just shooting it to you straight. Good Luck, and stay focused - if you do, you'll be a homeowner again soon!
Sarah
0 votes
NonRealtor, , 23456
Thu Jul 24, 2008
What happened? I thought housing was a "great investment". Where did you go wrong? Maybe you can share your story with us here, so that others can learn from your mistakes. Good luck
0 votes
Lee Taylor, Agent, Decatur, GA
Thu Jul 24, 2008
Rebound,

What is your banker telling you?

Is your banker still in business?

What exactly do you want to obtain for a 100% LTV $160,000 sum?

What got you into foreclosure in the first place?

You are pretty much on a bread and water diet until you can accumulate some assets.

Get rid of your $2000 debt, dude.
Web Reference:  http://intowninsider.com/
0 votes
Jen and Mark…, Agent, Holmes Beach, FL
Thu Jul 24, 2008
Getting a loan will be extremely difficult. I don't know any lenders willing to work with that. Your best bet would be to keep paying your bills on time, even 1 30 day late can damage your credit score. Look for a lease purchase with the option to close in a couple of years. In the meantime, start saving the extra cash you have and be prepared to put down a substantial amount, like 20% on the next home you buy. Even with a owner finance, they will expect a decent amount of down payment.
Web Reference:  http://JenBowman.com
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