In 2009-2010 we had a $20,000 debt written off by the bank. We were unable to pay the debt due to job losses. We were able to sell our home(no

Asked by Hb, 60148 Mon Feb 27, 2012

foreclosure),and break even to pay off the mortgage debt. We have since worked to reestablish our credit by paying off our car note, a credit card and miscellaneous debts. We currently have no outstanding debts. What are the chances we would qualify for a mortgage loan? We would like to purchase our own home again, nothing fancy, just a place to feel settled and at home. My husband and I are both employed.

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Michael Hagen’s answer
Michael Hagen, Agent, Elmhurst, IL
Mon Feb 27, 2012
There are a lot of variables which go into this equation, and what you have listed here is not necessarily a deal killer for a mortgage, but a lot of little things added together could be: what is your current credit score, how long have you been employed at your current job(s), what outstanding debts do you have, etc.

The mortgage market has gotten much tighter in the last couple of years, and I have had many clients with 750+ credit scores disappointed in the low amount of mortgage that they qualified for because of their other debts.

Your best starting place is Alex Romo of Bank Corp Mortgages @773- 550-2539 He can tell you what you can qualify for now, and if you don't qualify now, he can also get you on a program to repair your credit so you can qualify in the near future (there is a cost for this, but you get it credited back to you when you use their office for a mortgage).

Please feel free to contact me directly with any other real estate questions.

Mike Hagen
Realtor -- Buyer Representative
Goodwill Realty Group
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Suzanne Hami…, Agent, Orland Park, IL
Mon Feb 27, 2012
Your credit scores are going to be a big indicator on what you can do. If you have had no new positive credit, your credit score may still be too low to loan. Most lenders want 620-640. You can get prepaid credit card to increase your credit score. The other problem is who owned your mortgage. If you had and FHA or VA loan, you need 3 years before you can buy from the foreclosure date. If it was another kind of loan, could be 5-7 years. You can check with a lender to see your chances and give you a roadmap to how you can get approved.
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Cathi Weaver, Agent, Chicago, IL
Mon Feb 27, 2012
Call Grace Trendel with A&N Mortgage. She will let you know where you stand mortgage wise and then you can see if there are any other credit issues that may need to be addressed so you can be in the best position to buy...which may be sooner than you think.

Grace can be reached at 773-983-0448. Don't worry, she won't bug you and keep calling you! :)

And I'd be happy to help you in your home search. I work with buyers whether they need to buy in 2 weeks, 2 months or 2 years. So, feel free to give me a call and we can talk about it.

Cathi Weaver
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Anthony Cava…, Agent, Jolier, IL
Mon Feb 27, 2012
Chances are you may need to wait a couple more years before you can qualify, and you definitely won't get the best rate, but talk to a mortgage broker and see what he thinks.
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