Can Someone Buy A House Within A Year To Two Years After Declaring Bankruptcy?
Finance Man hit this one. You can get a mortgage 1 day out of Bankrupcy. The rate will be high but you can refinance after you establish better credit. After 2 years you can get a mortgage as if it never happened which gives you better rates. All of this depends on what your credit looks like.
Take this advice: If you re-establish “good” credit after your Bankrupcy, you might be in a better credit situation than someone than never did a Bankrupcy in the first place. The government, creditors, banks, and wholesale lenders all look at it as a start over. If you fell into your old habits your credit will plummet. If you keep some “good” credit, you may have a tremendous score if you do it right.
Tips for “Good” credit: Open a 2-3 charge cards making sure the payments are always on time or early. NEVER let the balances go as high as half of the credit limit. Make sure to pay your rent by CHECK so you can use it as a credit reference. The ONLY way a lender will use it as a good reference is if you paid by check or money orders and kept all the copies.
You’ve got to go with a subprime mortgage through a mortgage broker if you want to buy before the 2 year mark. Your best bet is to open your phone book yellowpages and look under mortgage. There will be a Kabillion companies and they can all help you.
Hope I’ve helped. Read my blog to find out what mortgage brokers do, how they can help you, and find out how the application decision process works: http://explaintome.blogspot.com
Tags: After, bankruptcy, Declaring, House, Someone, Within, Year, Years
November 20th, 2009 at 12:12 pm
You can buy a home any time you like, as long as you have the money for the down payment and the closing costs. If the lending institutions won’t go along with you; there are are land contracts as an option (the seller does the financing).
November 20th, 2009 at 2:32 pm
I think you have to wait 7 years.
November 20th, 2009 at 8:28 pm
Of course you can buy a house…you may have a problem getting a mortgage, but you can certainly buy a house…helps to have all cash. Good luck
November 20th, 2009 at 8:34 pm
I am a mortgage specialist of many years. I write loans through about 300 banks nationwide. Generally speaking, there are banks that will give you a mortgage 1 year from discharge of a Chapter 7 bankruptcy, and 1 year from the filing date of a Chapter 13 bankruptcy. If you need a mortgage and you have a bankruptcy, please contact me at wwi_2@yahoo.com
November 21st, 2009 at 2:14 am
Yes, buy the house in somebody else’s name.
November 21st, 2009 at 6:31 am
Yes, if they decide to do a Land contract with an investor who is selling a home, but if you are formally going to get pre-approved for a home loan, you would need to be at least two years for a sub-prime home loan and your Credit score has to be at least 520 with 20% down payment. If you are trying to get pre-approved for an FHA home loan you will need to be at least 3 years out of bankruptcy with discharge papers. You might want to attend a seminar by Stephan Snyder, author of Credit After Bankruptcy and at his seminars there will be lenders willing to work with
people who have been through Chapter 7 Bankruptcy.
For a Land Contract to work you will need to do some
heavy negotiation with an experienced home seller or at
least get coached by a Russ Whitney, Robert Allen
or CREI person who has experience doing this transaction.
It has been done because I have bought properties in East Lansing, Michigan this way! Carlton Sheets has a No Down Payment Program with all the paperwork and scripts of what exactly to say to people as well as Conti & Finkel; Authors
of Making Big Money in Real Estate and Making Big Money
in Pre-Foreclosures! I was trained by Robert Allen, Russ Whitney and Charles Givens in the past real estate seminar programs. I have been an operations manager of a Homeowners Concept in the past and I have worked 6 years as a Senior Loan Officer for major banks, and sub-prime lenders.