obtaining mort after bankruptcy

[shellny]

What is the name of your state? New York

How difficult is it to obtain a mortage after filing a chapter 7?

 

[seniorjudge]

Q: How difficult is it to obtain a mortage after filing a chapter 7?

A: Ask a mortgage broker. There are plenty of them who deal with folks who have bad or no credit.

 

[juliedealer]

Indiana

Shelly I have a bk 7 from 2001. I was eligible to apply for an FHA loan in 2003 (2 years post BK), but waited until 2004. FHA has $ limits that may or maynot present a problem for you, they only require 3% down payment and it (the down payment) can be gifted. You will need to have a clean credit history (no lates or other derogatory information) since you filed BK. FHA is not dependent on "FICO" score's, it uses a different method of assesment.

FHA does require that the home purchase meets various requirements, called an "FHA inspection" but don;t confuse this with a "home inspection" .

From personal experiece the inspection simply insures FHA is probably not buying a money pit and is not inhabitable and that the home is being sold at an appropriate value. THe thoroughness of FHA inspections seem to vary depending on where you live. So I suggest you pay for your own "Home inspection" an FHA inspection really does not gaurantee habitability or defects.

I got lucky and found a bank repo that didn't require much to bring it to FHA standards.

Please look into FHA and state programs before going with a "subprime lender" you can save alot of money.

 

[Fat Tony]

I have closed loans for people as quickly as 60 days after a CH 7 is discharged. They got hit with a pretty stiff interest rate (about 10.5), but after they make timely payments for a good 12 months and dont screw up their credit anywhere else, I'll get them into a conforming loan this time next year. Its very easy to do. As of right now, bankruptcy is the best thing to do for a lot of people with collections/charge offs. Get that wiped off now. The lady in Florida died today, so our government may have to start looking at real issues again. Therefore, that bk reform act will pass very soon, and eliminate BK as a choice for a lot of people.