Bankruptcy Home Loan

Bankruptcy Home Loan questions and answers

Find information on Bankruptcy Home Loan at the number 1 bankruptcy information site online, Bankruptcy Says Uncle

Q: How do I get a home loan after bankruptcy?
I live in the western suburbs of Chicago. I am hoping to put down as much as possible (upwards of 20K) on a townhouse or condo. My bankruptcy was discharged in July of 2005. I want to buy next summer (June/July). I have no credit problems since, but I share a 400 per month student loan with my ex and my current boyfriend is making payments on a car that is in my name. I will have no other debt, besides student loans (the old $400 one and a new $100 one) and the $300 car payment. This looks like a lot of debt, but I'm only paying $300 of it. What should I do to qualify for a decent home? Should I make my boyfriend pay off the car faster? The stupid student loan place will not separate our consolidated loan either. So it looks like I have $800 in debt that I pay when I only pay $300! I will be starting a second career as a paralegal, so I'll only have about 6 mos. in a new job. Are there any lenders or agents on this who have any ideas?

A: Lots of people think that once they’ve filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn’t always true, there arewill help to improve your credit history in a number of different ways.

Q: Where can we be approved for home loan with bankruptcy on file and almost to none credit history?
Does anyone know if we can be accepted for home loan of under 50000$. One does not have credit history and is slowly building it by getting credit cards and some services like cell phone and the other filed for bankruptcy discharged chapter 7 about 5 months ago with a credit score between 400 to 500. Thanks for your answers

A: You can't. Your financial history shows that you do not know how to handle financial responsibility. You are a perfect definition of sub-prime loans. Get your credit cleaned up and I doubt you will be able to get a loan for at least 7 years..until the bankrupcy is off your credit history.

Q: Interest rate on a home loan after bankruptcy?
My bankruptcy will clear on appx Mar - May of next year 08 and i am wanting to buy a home ASAP with as much as 20-30 percent down on a $100,000 - $150,000 loan. I only have utility bills and mobile phone, tv, etc. No car payments making 40K-50K What would be my appx wait time to get a loan and interest rate for it.

A: The new name of the game will be income and assets. Any chance you have of getting a loan will depend on your having savings and enough income to cover the housing expense and all consumer debt with less than a third of your income. Based on your income - $40k - your monthly income would be $3.3k/mo. Since you indicate no other debt, I'm thinking you would qualify for a $1k/mo payment, which would mean $800 approx. for the principal and interest. Assuming a higher interest rate because of the bankruptcy, you're probably looking at a mortgage that would cover the low end of your range. When I started this answer, I didn't think you would qualify. But working through the numbers, it does not look far fetched. Good luck.

Q: Has anyone secured a home loan after bankruptcy? Mine was discharged about 2 yrs ago & I wish to buy a home.?
My bankruptcy was discharged about 2 years ago and I've been doing well since. I don't have any delinquent payments or lines of credit. I did get a vehicle lease with my father as the co-signer. I am employed full time as a store manager and make decent money (for the past 2+ years or so now.) I'm wondering if anyone else has been able to secure a home loan (and through which company) in a similar situation. Thanks!

A: Yes you can get a home loan! I was discharged in June 2006 and closed on a new construction home loan in 8/2008. I was able to go FHA with 3% down in Texas. I had re-established after filing with a couple of department store & major credit cards, an auto loan with Prestige financial-which has now been financed & paying my student loans. I have had no late/missed payments since filing and was able to do it so you may be able to as well. Good Luck and DO NOT listen to people who say it will take several years. That is not always the case.

Q: If I file for bankruptcy after I have my home loan modified, will the terms of my modified loan change?
I am working with my lender to get my home loan modified. I also will have to file for bankruptcy; that is after my hugely expensive divorce is final. I have heard that once I modify my home loan, I will lose the modification terms if I apply for chapter 7. Is that true?

A: As you will loose your house, you do not have to worry anymore about the home loan.

Q: Could I get a home loan after a chapter 7 bankruptcy ?
How long would it take to qualify for a home loan? Is it possible to get a loan directly after the bankruptcy? I am worried I may not be able to save the home I have now. Am I just going to have to rent for awhile?

A: Right now given the turmoil in the mortgage industry, it is prretty hard to predict. It wouldn't hurt you to talk to several lenders now and get their take on it. In the past, it generally took 2-3 years following bankruptcy with ABSOLUTELY NO further blemishes on your credit record, and some positive history since the bankruptcy, before lenders would start considering you for a regular 30 year fixed mortgage. If you need to refinance right after filing Ch 7 that could be a problem. My understanding is that even borrowers with very good credit histories are having trouble refinancing right now, in part due to the current status of the mortgage market. Unfortunately, tales are abundant of people who took out 5 year ARMs who had lenders "assure" them that "we'll get you into something else" when the ARM came due ... who are now in foreclosure.

Q: If i filed bankruptcy this year, is there any possibility of getting a home loan or using my va home loan?
I heard that I must wait 3 years after filing bankruptcy to use my va home loan or buy a house.

A: Not with your VA. FHA standard is 12 months but they make exceptions on compensating factors.

Q: Is that possible I can get home loan after discharged bankruptcy?
We been dischaged in last year May. We moved to different state and rent is almost expensive as house payment. with our family they are give us 20% down payment on the house if we can get a loan approval by direct lenders. Even our bankruptcy my score is 660 to 700. Where can I contect direct lenders?

A: Good luck with that. Now that many banks have gone down the tubes, it's going to be extremely difficult to get a loan especially with a bankruptcy. It doesn't matter what your score is, that bankruptcy will really hold you back. The first thing that they will check is your credit report. However, if you go into a bank, tell them upfront about your bankruptcy then maybe they can work with you. You better have about 50% down payment though. Otherwise, they will probably laugh in your face or they will stick you with an interest rate that is extremely high...as in credit card interest high (could be as high as 21%!!! instead of the 4.75% that is available to most people). Just don't expect much to work with. Could a family member get the loan? Then you could just reimburse them monthly...that's an option.

Q: What is the best way to get a home loan years after filing for bankruptcy and how do I clear my Credit report?
I'd Like to see if there is a step by step procedure on clearing my credit report from when i filed bankruptcy a couple of years ago and how to go about getting a home loan.

A: (1) Wait. Nothing but time "Clears" your credit report. Home loan? Good job, current payments on time, good down payment, good income to debit ratio, good sales price vs real value of the home. Apply. PAy a higher than normal interest rate. To the gentleman below selling mortgage services. Law states that a bankruptcy will show on your credit bureau report for 7-10 years, NOTHING takes that off; no matter what you are sellling. From Chanes profile: Chane is also the owner of the following sites: http://chanesteiner.com... http://theroundersroom.com... http://PokerTrivia.us http://pokerincomeguide.com... http://creditbuildersinc.com right.

Q: Can the 2nd mortgage loan on my home (80-20) be erased in a bankruptcy? The home is worth less than the first
I have two mortgages and I plan to go into bankruptcy. I heard that I can get the second loan be erased through bankruptcy since it is ulnsecured debt, because the value of the home is totally less than even the first loan? Is it possible? under Chapter 13 or even Chapter 7?

A: No, no, no. You can't do that. I sure hope you didn't pay an attorney to hand you that information, and I have no idea of where you heard it, but it's 100% not true. It is NOT an unsecured debt...b/c your home was used as collateral, and that is why the lien was placed against your home...if you check your title, you will find out the second mortgage is in second lien position. It doesn't matter what the value of your home is...that is NOT a consideration for the bankruptcy court. You need to understand that filing for a bankruptcy isn't as easy as it used to be. If you just went hog wild and just starting running up credit cards b/c you mismanaged your money, you can't file for one anymore...those days are gone. That is why people were beating down the door last year to file before the laws changed. You have to have a very, very valid, unusual reason for why you can't pay your bills. A bankruptcy, IF the court allows you to file, only allows you to wipe away any past due payments you have on your home, but not the loans themselves. If you cannot continue to make the payments, then the court will eliminate those accounts from the bankruptcy, and you'll either lose your home to foreclosure or you have the option of doing a deed in lieu. You really need to do some more research on how they work.

Q: even with the mortgage meltdown, can i still get a 100% home loan after 1 year post bankruptcy?
even with the mortgage meltdown, can i still get a home loan after 1 year post bankruptcy? my middle credit score is 624. i just paid off a $1000 credit card and the impact (if any) from that isnt showing on my credit report yet. if i have a chance, can someone please point me in the right direction.

A: 100% mortgages basically disappeared with the sub-prime mess and collapse of the housing market. Add to that your very recent bankruptcy and you basically have no chance. What is amazingly surprising to me is that so soon after the financial mess you put yourself into, it appears you haven't learned a single thing. You are actually out there looking for 100% financing after you have proven for all to see that you can't handle credit? Have you learned absolutely NOTHING? Luckily for you no reputable lending instutution will allow this. Perhaps a loan shark. But if you try to screw them the way you reecently screwed all your recent creditors. It will be much more painful to you.

Q: Will filing for bankruptcy benefit my home loan modification case (currently under review)?
I am doing a loan modification on my house. I am current on all debt payments (credit cards, car loans, car insurance, etc.) except for the mortage payment (includes home insurance and property taxes). will it benefit my loan modification review if I do a bankruptcy (thereby eliminating my credit debt, etc)? I am aware of the consequences of a bankruptcy. Please let me know."

A: There is no benefit to bankruptcy if you are up to date on your unsecured debt. There is a good chance you would spend a bunch of time and money going through the process and end up in Chapter 13 with only a small reduction in your payments. Things like car insurance could not possibly be reduced by bankruptcy and may actually go up if your credit is trashed.

Q: Will it be difficult to get a auto or home loan if I filed bankruptcy 9 years ago?
I had to file bankruptcy 9 years ago because of medical bills. It will be off of my credit in a year. Is a loan possible Or should I wait until it is removed from my credit report?

A: 7 years usually cleans up the credit report. Run your own report and see what it looks like. Ask the question of where you wish to buy (home or house) and see what they are saying about your report ~ whether they would engage with you and there is no need to tell them about your bankruptcy in the mix of the conversation. Have a look at your own report first.

Q: If I filed for Bankruptcy can i get a home loan?
I filed for bankruptcy last Oct 05 husband did not and we want to purchase a house and land that is going up for Sheriff's Auction. Will we be able to get a loan? And where should we go to get a loan?

A: this is tough question normally there is a wait time of 2 years however sounds like your husband did not file click on my pic there is a bad credit link there which has the following text "We have over 80 Little-known Banks & Companies that offer Bad Credit Loans, Bad Credit Home Loans, Bad Credit Auto Loans, and Bad Credit Personal loans to people with Bad Credit or even a Bankruptcy. Many require absolutely NO COLLATERAL & NO CO-SIGNERS. Home ownership is not required." check it out for yourself

Q: what happens if primary home loan signer files bankruptcy, the cosigner is not married to her,not together now
our son & fiancee bought a house 2y ago-she left him,with the house-hard for him to make pymts,3 mo ago he moved out due to she told him she was selling house- she never put on market - now she filed bankruptcy chapter 7- where does this leave him? should he file bankruptcy also or leave it to be foreclosed?

A: the primary is first responsible, but the secondary is responsible for the loan as well. if the primary files for bankruptcy, then te creditors can file against the property, legally the primary is the loan holder and anything that has to do with his finances will go to the home in question, you better lawyer up! Oh yeah there is no chapt 7 any longer