I filed BK, am I able to buy new house in future. How long I have to wait, and what should be down payment. I have a good job now.

Asked by papa, Oceanside, NY Sun Feb 26, 2012

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Robbie Vaughn, Agent, Mineola, NY
Sun Feb 26, 2012
Good answers so far. Get a copy of your credit report and dispute improper entries (ask your bk attny how pre-filing and discharged debts should be reflected on your rpt). Beware of credit repair companies. Good luck!
Web Reference:  http://bverealty.com
1 vote
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Sun Feb 26, 2012
It depends what bankruptcy you filed, you can be eligible for financing in a period of 2 years from the date the bankruptcy is released. We look closely at your ability to build new credit and payment habits after the bankruptcy, among other things.

I can certainly give you some advice as to how to get your credit started and give you more information on what we as lenders look for. This way you'll be better prepared to finance down the line.

Javier Meneses
Sterling National Bank
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sun Feb 26, 2012
Much will depend on the type of bankruptcy, circumstances that led you to the bankrutcy, current credit, is the bankruptcy currently discharged, etc. Generally it can take up to 2 years from the discharge date--however, for an accurate answer, do visit with any qualified loan officer, and see if you do qualify--he/she will be your best source of information as it relates to you and your specific situation; if you need recommendations feel free to contact me directly.

1 vote
Debbie Onoye…, Home Buyer, Long Beach, NY
Fri Nov 23, 2012
How is too old to buy a house?
0 votes
Steve Vennem…, Agent, Pine Springs, MN
Mon May 21, 2012
You can buy a home with around 10% down and refinance it at a later date here is a site you can search contract for deed homes for free. New york rent to own ect. Good luck. http://www.nyhomescontractfordeed.com/owner_financing.html
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Feb 29, 2012
It depends on how you manage everything after the BK and the rest of the details in the loan application. Nothing is done in a vacuum regarding mortgage applications, we must look at the entire picture not just a waiting period.

Loans processed with standard documentation require the following:
Any derogatory credit must be explained. Letters of explanation from the borrower must be in their own words and handwriting. (May be typed, with the borrower's signature.)
Accounts that are reported “past due” (not reported as collection accounts) must be brought current at or before closing.
Credit inquiries within the past 90 days of the date the credit report is pulled must be fully explained. The borrower must explain the purpose and the outcome of each inquiry. If applicable, provide documentation evidencing no new accounts.
Any other accounts outstanding and not referenced on the credit report must be directly verified. This includes loans against employee savings plans and private loans.

Chapter 7
Two years from discharge date; evidence the applicants have demonstrated ability to handle their credit affairs; and that applicants have re-established acceptable credit.
Discharged less than two (2) years – NOT eligible.
Chapter 13
A satisfactory performance history for one year of the pay-out period and MUST be discharged . The borrower must receive written permission from the court to enter into the mortgage transaction.
Some of the info in a recent post may help, see the link below. Good luck,
0 votes
Robbie Vaughn, Agent, Mineola, NY
Wed Feb 29, 2012
I have dealt with the situation many times. You may actually be in a much better position than you think. It would serve you well to consult with an attorney well versed in loan mods, foreclosure defense, and bankruptcy. The link below may give you some insight. Good luck!
0 votes
Barbara E. N…, Agent, Oceanside, NY
Wed Feb 29, 2012
Hi Papa

When did you file BK? Is the BK finalized?
Regarding the loan modification, the min $3300 per month for the first 5 years most likely includes the taxes and insurance, the principle and interest is about $2370 for the first 5 years, so the rest would be the taxes and insurance.
To answer your questions:

Q1, It all depends when did you file the BK, please contact a loan officer to answer those questions, she/he will be able to run your credit report and they can give you a better answer as to when would you be eligible for a loan.

Q2, If you don't get a loan within a year, you don't have to keep your house if you chose not to. You can sell, and rent until you are eligible for a loan. When finding a rental remember, that you credit score might be low due to BK and delinquent on your mortgage, so the landlord might be asking you for pre-payment on the rent for 2-6 months (not necessary, but some landlord do ask)

Q3, Did you file Chapter 7 or 13? You might be able to keep your house, but for a better answer, YES, definitely contact an attorney to answer all your legal questions.

Thank you

Barbara E. Nowak
Web Reference:  http://www.BarbaraNowak.com
0 votes
papa, Home Buyer, Oceanside, NY
Wed Feb 29, 2012
Thanks for every one, and I will call some of you for indivual discussion. I am making a deceission to keep a house OR let it go.
After 45 months non payment I applied for Loan modification, and after 3 months Trial period I got an offer from bank. At the time of missing first payment My loan amount was 415K, Taxes 8000, IR 6.75,Insurance 2000/year.
Home equity 35K
Now bank offer me with

a new loan amount of 600K (and said it can be increase depends on when I will accept offer)
Term 30 Years
IR first 5 years 2.5, next 5 years 3.0 rest of life 3.85
Min payment 3300.00. did not mention it is including taxes and ins (i am supposing it)

My house needs 30-50K repair at this point
Average house value in my town similar to my house 370-400K,

I can pay monthly mortgage , but I am paying 650 for a house while I can buy a house in 370K.. I think there is no major set back I will be able to make a 10% down in a year


Q1, may i able to get a loan when I am ready, so I can let this house to go?

Q2, If I am not able to get a loan with in a year then do I have to keep the house

Q3, DO I need some one (attorney, I don't have good experience for loan modification attorney, I did all by my self ) to negotiate with bank to set a new loan on market value ( and amount owed will be a part of BK).
I am assuming that if I let the house to go, it will be a part of BK, and bank will sell at market value. so he can set a loan amount to me a new market value.

Thanks all of you
0 votes
Gail Gladsto…, Agent, 11743, NY
Sun Feb 26, 2012

Once you file a bankruptcy, there are a lot of issues it depends on. Please call Dominick Sutera of Academy Mortgage Corp...he is the Director. I use him for my personal and professional business. He is an educator and will be happy to explain what you can expect in the future and what you might need to be doing now to enhance that future.

Dominick can be reached at dsutera@BankAMC.com or 516-249-4800.
0 votes
Barbara E. N…, Agent, Oceanside, NY
Sun Feb 26, 2012

Bankruptcy may display on your credit for 10 years from the date of filing. It doesn't mean you have to wait 10 years post bankruptcy to buy a home. It will depend on your creditworthiness after BK. You will definitely be able to buy a home in the future, but to receive a better answer, I would speak to a mortgage professional.

Barbara E. Nowak
Web Reference:  http://www.BarbaraNowak.com
0 votes
Justin Maimo…, Agent, Baldwin, NY
Sun Feb 26, 2012
20% or more is a great down payment. With banks being so strict, due to your BK, it will be at least a few years before you can even apply for a mortgage. Feel free to contact me with any further questions you may have.
0 votes
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