Jstep01, Home Buyer in Commerce, GA

Rent or Purchase in Chp 13

Asked by Jstep01, Commerce, GA Tue Sep 3, 2013

I am looking for an agent that can assist my husband and I in making an informed decision about owning or renting a home. We're at the midpoint of our bankreuptcy and would like to look into a home. I've talked with lenders who say it's possible, but to no avail. We are both employed and have things in order, but we need help on our options.

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Robert Robbi…, , Atlanta, GA
Tue Sep 3, 2013
Rodney has already spelled this out in detail for you. The 1st things you should do is talk to a Mortgage specialist to get an idea of what you can afford. Then you should talk to the Trustee on your BK and verify they will give you permission to purchase a home while you are still in your repayment phase.

Your BK 13 didn't involve a home did it? if so that could change all the advice given so far. A home involved would take this from a normal BK situation to a Foreclosure, Shortsale, still currently reporting late on your mtg payments. these situations are not Covered by the bankruptcy as far as how lending is done. If a home was involved, throw on an additional 1-2 years to your waiting periods.

if you can buy now there is no question about how much better a purchase position is vs. renting.

I hope this has been helpful.

Rob Robbins
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
Office 678-578-7613
Cell 404-932-5353
0 votes
There was no home included.
Flag Tue Sep 3, 2013
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Sep 3, 2013
For purchasing a home, that discusison would need to be with a Loan Officer rather than a Real Estate Agent.

FHA mortgages are the least restrictive for a previous bankruptcy. HUD requires that a minimum of 24 months must have elapsed from the DISCHARGE date of a Chapter 7 Bankruptcy before a borrower can be eligible for an FHA mortgage.

For a Chapter 13 Bankruptcy, then you must have made at least 12 on time payments. Additionally, you must also have permission to purchase from the Bankruptcy Court.

In the time since the Bankruptcy, there should be no new derogatory items such as late payments, collection accounts, liens, judgments, etc. Having late payments after a Bankruptcy is often viewed as a disregard for the importance of credit. It also reflects that you are still having financial struggles.

If a mortgage was included in the Bankruptcy, HUD requires that you must wait at least 36 months from the foreclosure date to be eligible for an FHA mortgage. Sometimes, the foreclosure happens well after the Discharge Date of the Bankruptcy. If the mortgage was not re-affirmed, there is not much that can be done until the property get foreclosed on.

Also, if the original mortgage was a government backed loan (i.e. FHA, VA, USDA), you must wait at least 36 months from the date that HUD paid the claim on the defaulted mortgage. This can sometimes be months after the original Foreclosure Date Until the 36 months on the claim has passed, you will not have a clean CAVIRS report which is required for an FHA mortgage.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. Once you are ready to get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Web Reference:  http://www.rodneymason.com
0 votes
James Deskins, Agent, Worthington, OH
Tue Sep 3, 2013
What is" midpoint?" Are you saying you are (1) year into the bankruptcy? If so, the answer is "no." You cannot get a loan. If you are talking about a "standard" loan (not some weird, high-interest, high closing costs, sign your life away loan) then you must wait (2) years from the discharge date of your bankruptcy. And that's assuming NO late pays or slow pays in that (24) month period.
0 votes
into the bankruptcy....sorry
Flag Tue Sep 3, 2013
I mean 2.5 years into the the loan. So you're suggesting that I try a rental until the discharge date correct?
Flag Tue Sep 3, 2013
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