We have a bk that is 2yrs discharged a short sale that is 18 months ago, we would like to purchase a home. How much would we need to put down?

Asked by Marie, Joliet, IL Sun Feb 3, 2013

Transunion 669 experian 640 equifax 652 we have been paying everything on time. We would like to know what are our options?

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Peter Kedzior, Agent, Elk Grove Village, IL
Tue Sep 17, 2013
A client of mine was able to obtain a mortgage just 26 months after bankruptcy discharge and less than 3 years after he lost his previous home to foreclosure. So, you have a chance of getting a mortgage, especially if you can prove to the lender that your financial situation has GREATLY improved over the last 2 years. FHA-backed mortgage is one of good options I would think of in your situation. Please consult a licensed mortgage broker for advice on that subject.
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Michael Sims, Agent, Joliet, IL
Sun Mar 24, 2013
100% at this point. However, some mortgage lenders will have different takes on the situation. A short sale is supposed to lock you out of a "securitized" mortgage for 3 years. What that means is that any mortgage that is sold into the secondary market and backed by FHA, FNMA, FHLMC and VA is not supposed to consider you for 3 years. THERE IS A SOLUTION. You can seek a mortgage lender who does most of their own portfolio lending and they may consider you if the income grossly outweighs the debt to income ratio. That is to say that if your mortgage payment is less than 15-20% of your gross monthly income you may have a shot. Also be prepared to put down 20 to 25% with your past credit history. The bankruptcy is not as big a problem as the short sale. You will have to prove that your are capable of making the payments without any chance of default again. Many of the big banks have loan programs that are held in portfolio (Chase, Bank of America, Wells Fargo) but it is not easy to get considered for them. You will have to do some research. Also try to contact local mortgage bankers (not brokers) who are in the area. The difference is that mortgage bankers lend their own money and mortgage brokers just sell other bank's products. Look in the mortgage bankers association directory. Try to get a seasoned loan officer who has handled cases like yours before and not some new kid who cannot find the solution you will need.
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Miekeba Jones, Agent, Silver Spring, MD
Sun Feb 3, 2013
Hi Marie, consult a mortgage lender.
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