I had a bad divorce last year leaving a foreclosure on my record. I have a great job & income, no debt and $40K down but can't get a loan.

Asked by Mgddd, Sunland, CA Thu Jul 14, 2011

Any ideas

Help the community by answering this question:

+ web reference
Web reference:


Dan Tabit’s answer
Dan Tabit, Agent, Issaquah, WA
Thu Jul 14, 2011
Save your money, rebuild your credit and wait. Any loan you would likely come across now would be very expensive. Even after the required time expires, typically 5 years after a foreclosure, you'll need a solid credit profile to be considered.
Rebuilding credit is a commonly missed but critically important step to be ready when the time comes. Start with your bank, you may get a collateralized credit card. Take out some store cards when you can and pay everyone off right away. Auto loans are another good place to get your credit re-established, just don't get carried away.
2 votes
Manny Meneses, Agent, Granada Hills, CA
Thu Jul 14, 2011
Hi Mgddd,

You have a something plauging many hard working people nowadays. Couple of things to think about;
1. Do you force your way into home ownership? Meaning, is it that important for you to own, that you are willing to do everything and anything to get it done?
2. Do you line up all your ducks and do it when it's the best time for you?

The answer to either question lies in what you value most, instant gratification or delayed gratification.

2 things to consider;
-The market (pricing wise) will remain about the same for the next 3-5 years. There are many economic factors that will hold the market still. This helps you and gives you time to still own at low prices.
- In order to jump into the market now, will cause you to ......?

This is not an easy answer and I have simplified a lot of it. Feel free to call me and expand on your "OPTIONS". My best advise to you is to always deal when you have "options", it's when you have no options that you make horrible mistakes in your financial life. Hope it helps and I'm always available if you need more helpl.

"As always, the best compliment I can receive from you is your referrals."
Web Reference:  http://www.mannymeneses.com
0 votes
Bob McClure, Other Pro, Walled Lake, MI
Thu Jul 14, 2011
hi...dan tibit has the best advice..yes, you could find a loan .you wouldn't like the terms...i have done a lot of private deals....with high risk loans...they are mainly best used for saving equity, not for purchasing..
very best regards
bob mcclure
1 vote
, ,
Thu Jun 7, 2012
It isn’t as simple as anyone in the industry will normally share, everyone focuses on the minimum timeline and credit score threshold, in addition to those you must meet all of the other requirements as well which will be tricky after a BK.

DO NOT dispute accurate information on your credit report just because it is negative in nature, that is a serious crime regardless of what the “credit repair” experts tell you.
FHA will be the most forgiving avenue available to most people, in addition to the two items mentioned above you must also meet their TOTAL Scorecard, something rarely discussed by LO’s.

Here are a few items I thought may help:

The borrower must have a minimum of at least three (3) current, open trade lines with 12 months history of being paid as agreed, regardless of AUS findings. Alternative trades are acceptable with AUS approval. Examples of alternative trades include utilities, auto insurance and rent.
Rental Verification

If the borrower is currently renting, the rental history must be verified. Rental references on the credit report are acceptable if a rating is provided. A minimum of 12 months must be verified via cancelled checks and/or bank statements if renting from an individual or VOR if completed by management company.

Must be paid in full or have a satisfactory repayment plan is in effect at time of application, established at least 12 months and there have been no late payments on the plan (documentation must be provided to prove satisfactory payments).

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.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
Robert Chome…, , San Diego, CA
Thu Jun 7, 2012
You'll have to wait 3 yrs from the date the deed transferred out of your name to apply for a FHA loan (7 year wait for conventional). You might want to look for a seller that would carryback financing or maybe a private lender that would give you a loan with 30-40% down.
0 votes
Barbara Kale…, Agent, LaCanada, CA
Thu Jun 7, 2012
I agree with Dan Tibit. You are in the waiting game and rebuilding your credit. In a recent FHA seminar I attended the Representative said that it is possible to get an FHA loan within 18 months. However she did not say under what conditions. A good FHA certified loan officer will be able to answer these questions.
Get help sorting out how to build your credit scores, don't be late with any payments and do not charge any BIG expenditures, Keep your ration of debt owed to credit limit to 30%. that is, if you are serious about wanting to buy in the next 2-3 years. There are a ton of places you can go to get help with building up your credit.
A larger down payment is also an advantage. So save your money.
Barbara Kalergis
Adrian Realty Company Inc
0 votes
LuLu DeBolt, Agent, La Crescenta, CA
Sun Jan 15, 2012
Talk to A Lender who you can really Trust don't start paying to anyone before getting a better advise
Web Reference:  http://trulia.com
0 votes
Dawn White, Agent, Brick, NJ
Thu Jul 14, 2011
Look for sellers who are willing to hold paper-Seller Financing. There are owners out there who are in a position to take back a mortgage. You may pay 7% or more but I am sure you may be able to find a few. Put together a profile with your personal income and expenses and show there are no other credit problems except for the foreclosure and present it. You may get lucky.

Good Luck
0 votes
Robert Chome…, , San Diego, CA
Thu Jul 14, 2011
If you were ever in the military you only have to wait 2 years after a foreclosure to get a 100% financing VA loan. For everyone else the minimum wait is 3 years after the foreclosures to apply for a FHA loan.
0 votes
Marge Bennett, Agent, Fort Myers, FL
Thu Jul 14, 2011
maybe you could find a seller who can carry the note.
0 votes
Danny Tran, , Los Angeles County, CA
Thu Jul 14, 2011
Hi Mgddd.

Please give me a call, I may able to help you


Danny Tran
1298 W. 7th st
upland, ca 91786
0 votes
Emily Knell, Agent, Huntington Beach, CA
Thu Jul 14, 2011
There are some private investors out there who take people's situations on a case by case basis. For example, if you can show that you've been a credit worthy little angel, since the divorce was final OR show that prior to the foreclosure taking place you were a model of credit worthiness, you may get some slack from a non-traditional lender.

I'm not necessarily talking about a hard money loan either where your interest rate would be 12% & require 35% down.

I'm happy to pass along a referral for you, if you would shoot me an email directly. My referral works with a private investor arm off of Wells Fargo.

562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes
Search Advice
Ask our community a question
Home Buying in Sunland Zip Codes

Email me when…

Learn more