Rentals in Chicago>Question Details

sharroncarre…, Renter in South Holland, IL

In the market looking for a house. I have no conviction on my credit. I do have a judgment against me. I did file a chapter 7 a year half ago.

Asked by sharroncarrethers, South Holland, IL Fri Nov 1, 2013

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Hi Sharron,

You have a couple of challenges here that might be manageable.

First normal FHA guidelines require a 2 year waiting period from the date of discharge to qualify for a new home loan. They allow a shorter period of time if specific circumstances contributed to the bankruptcy. One circumstance would be major medical issues.

FHA recently came out and added another exception under their Back to Work guidelines, which allow a period f only one year to pass if you had specific income loss. Their guidleines state that your bankruptcy would have to have been casued by a reduction of income of 20% of more for a period of 6 mos. or longer.

If neither of these exceptions apply than you will have to wait 2 years from the date of a discharge to write an offer on a new home.

Now the judgment is a concern because it sounds like this happened after the bankruptcy; otherwise you would have included the lien in your bankruptcy. Lenders are looking for borrowers to have clean and re established credit after a bankruptcy.

The last concern on a judgment is that normally the underwriters will require the judgment be paid in full or be in a payment plan for at least 3 months.

This is good time to reach out to a mortgage professional that can review your credit and determine what needs to be done to help you.

Please feel free to contact us below.

Richard Kimball
Branch Manager NMLS #145114
Illinois State Manager Company NMLS #3029
5005 Newport Dr., Ste. 402
Rolling Meadows, IL 60008
Office: 847-252-7900 xt. 5515
Fax: 847-660-2190
1 vote Thank Flag Link Fri Nov 1, 2013
Do you have this Judgment against you righ now pending ?
1 vote Thank Flag Link Fri Nov 1, 2013
I have a judgement in whch it was included in my chapter 7. Will the judgement stop me from renting property?
0 votes Thank Flag Link Tue Nov 5, 2013
Hi Sharron,

I see you are looking to rent at the moment, when the bankruptcy has been discharged for 2 years please give me a call and we can try to get you pre-approved for a mortgage loan. If the bankruptcy was due to loss of income 20% or more for at least 6 months before the bankruptcy and you have since re-established your credit for 12 months you are able to buy now as long as you have proof of the income loss. Also the judgement has to be taken care of first. Feel free to contact me with any questions.

Thank you,

Ashley Pimentel
Senior Loan Originator
Market Place Mortgage
246 E Janata Blvd. Suite 220
Lombard, IL 60148
Cell: (630) 217-7013
0 votes Thank Flag Link Tue Nov 5, 2013
Have you satisfied the judgment yet? If so, having a copy of the "Satisfaction of Judgment" from the court house at which the judgment was filed will save you from having to obtain a copy when the lender asks for one. Best of luck!
0 votes Thank Flag Link Mon Nov 4, 2013
Hi There,

Are you looking for a home to buy? If so, contact a lender, who would be able to navigate you through the application process and can answer your questions about the judgement and the Chapter 7. Good luck.
0 votes Thank Flag Link Fri Nov 1, 2013
I would give double the security deposit and write a note explaining the situation why you had the chapter 7.
0 votes Thank Flag Link Fri Nov 1, 2013
Be able to provide an Application, Pay stubs ,Credit Report, Letter of Explanation and additional rent or security deposit. Everything is possible - work with a Realtor to have access to accurate info.
0 votes Thank Flag Link Fri Nov 1, 2013
I'm looking for a rental property not looking to purchase as of yet. The judgement was before the Chapter 7. I've sense been working on my credit.
0 votes Thank Flag Link Fri Nov 1, 2013
The judgement was included in the chapter 7
Flag Tue Nov 5, 2013
Then plan on providing the landlord with a letter of explanation of your financial status, at least 2-3 months security deposit, and first month's rent. Sometimes offering a direct deposit from your work check into the landlord's checking account will convince a landlord to move forward even without a huge security deposit. Just be honest and up front about your circumstances. Good luck.
Flag Fri Nov 1, 2013
HI Sharron,

Good luck on the rental. As for the judgment, it should have been included in your bankruptcy and would not then be a consideration on a loan in the future.
Flag Fri Nov 1, 2013

Are you looking for a rental or a home to purchase? There are challenges with both, as indicated, but there are often ways to accomplish things either way. Please feel free to contact me and I would be happy to give you some options for rental or purchase.

Suzanne Hamilton
Managing Broker/Owner
RE Homes Source
0 votes Thank Flag Link Fri Nov 1, 2013
I'm looking to rent for now until I can improve my credit. The judgement was included in the chapter 7
Flag Fri Nov 1, 2013
High, you should contact a mortgage broker to plan out what steps you will need to take to secure financing and then you will have a good idea of when you will be able to buy a home.

Sohail A. Salahuddin | Founder

Sohail Real Estate Group | Jameson Sotheby's International Realty

425 W. North Ave. | Chicago, IL 60610

Cell 312.437.7799 | Office 312.335.3230 | Fax 847.805.6030

Search the Entire MLS & View Our Listings: Sohail Real Estate

“Extraordinary Service For Extraordinary Lives”
0 votes Thank Flag Link Fri Nov 1, 2013
Are you looking to rent or buy? If you are looking to buy, you need to speak with a good loan officer to review your credit situation. If you want to buy, contact me and I will put you in touch with several good loan officers.
Nick Radakovich Home Sales Realty
0 votes Thank Flag Link Fri Nov 1, 2013
I'm looking to rent for now. The judgement was included in my chapter 7.
Flag Fri Nov 1, 2013
Its going to take some time before you can qualify for a mortgage. Contact a mortgage broker to discuss the steps that you need to take to qualify for a loan.

I strongly recommend Miz Ramadani at 708 499 5626
0 votes Thank Flag Link Fri Nov 1, 2013
very tough tenant profile but if you got excellent history with lots of documentation in an easy to read and verify format ready to go you can get a place
0 votes Thank Flag Link Fri Nov 1, 2013
Hello Sharron,

I would suggest you speak with three lenders. They will give you a clear picture of what you qualify for. Please feel free to email me if you would like a referral. Thanks!
0 votes Thank Flag Link Fri Nov 1, 2013
This question is listed under the "Rentals in Chicago" category. Are you looking to purchase or rent?
0 votes Thank Flag Link Fri Nov 1, 2013
You will be challenging approval. Best to contact a lender and have them see if there are any options like a co-signer
0 votes Thank Flag Link Fri Nov 1, 2013
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