is it possible to buy a home with bankruptcy on their credit?
My husband and I make good money for our area but when we had our son we found out he is disabled and has alot of medical problems so we had to file bankruptcy from all the medical bills. we can afford a monthly mortgage payment but cant afford a down payment is there anything out there for us.
Posted July 11th, 2010 in Bankruptcy Q and A. Tagged: bankruptcy, medical bills, medical problems, money, mortgage payment.
Check with your bank, and local Realtor. Banks which have REO’s –that is Real Estate Owned by the Bank after a foreclosure often will work with you, as they do not like to own property, they like to get payments on property. Also, some individual owners will ‘carry the paper’ for you. Look in local advertisements. Often an individual selling a house will sign a Notice of Intent to Sell to you, which will allow you to get a Fanny Mae or similar loan. Remember you are using the house as collateral, so the FHA and other agencies will often loan you 80 -90% of the home’s value if you are going to live in the home. Check the Fanny Mae website.
July 11th, 2010 at 1:04 amYou can apply for a loan from the bank but given your credit history they may not give you one. If they do, the interest rate is going to be sharply higher then someone who has good credit.
July 11th, 2010 at 1:04 amWith the Subprime mess banks have gotten a lot stiffer, and require a lot more down these days.
July 11th, 2010 at 1:04 amWhat you need to do is find a mortgage broker.
One of my friends from the local Rotary Club is a mortgage broker and he’s told me about getting people mortgages two days after their debts were discharged in bankruptcy court.
Yes, you will have to pay a high interest rate and there are probably some kinds of houses you might not be able to buy (like multi-family homes), plus there will be fees you’ll have to pay the broker too. But if you can afford the monthly payment that goes with a mortgage, a broker can usually hook you up with a program of some kind to get you into a house of your own.
Mortgage brokers are actually doing well as more and more people who have had bankruptcy and other credit problems are looking to buy houses.
But beware – not all mortgage brokers are honest. There are crooks among them just like with any other kind of business. The Rotary and Kiwanis clubs have high moral codes for member, so if you can find out who is in your local Kiwanis and Rotary clubs and find out if any of them are mortgage brokers, you’re heading in the right direction.
July 11th, 2010 at 1:04 ambankrupcy stays on your credit for quite a while. i believe 7 years. If you would have only filed last year. then you would have been off the hook.
July 11th, 2010 at 1:04 amHaven’t you heard that the government changed that law in the end of 2006 saying that even if you file bankruptcy protection, when you emerge from bankruptcy, you will still have to pay those bills from the creditors!
So all bankruptcy is now is a federally mandated "waiting period" for people who want it. And in return, you pay the government by pushing self destruct on your credit.
But if I were you, I would purchase a house now, get a GIANT loan from a bank, Invest in a swiss bank account, then file bankruptcy, then money will start flowing in faster than oh dear lord (now thats interest the Swiss way…). use some of that money to pay off the loan a little at a time, and give it a year, and you will collect more interest than you took out to repay the loan! Think of it as a loop hole that keeps repeating itself. Just beware not to take too much out to repay the loan at once, or you will screw yourself in the longterm.
And when you emerge from bankruptcy, pay in a lump sum all of them pesky medical bills. I guarantee that you will have money left over. A lot of it. And your credit will be high again, because not only do you own a home, and emerged from bankruptcy sucessfully, but you paid a ultramega sized loan off while still IN bankruptcy.
You will know how sucessfull you are when you get Visa calling your house everyday. Not for a bill, but offering you credit cards on a hourly basis.
Oh, and when you have all that money still left over, make sure you go on a shopping spree and treat yourself
and hehe, dont forget to buy me something