How difficult is it to get a mortgage, shortly after the bankruptcy?

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I know it’s my record for ten years, but I hope that all the seizures that allow them to lower standards, like myself, that you can afford a mortgage, but closed hiljuti.Ma understand why their refusal to grant a loan, but soon, I think seizures to receive an invoice if there is a common curve.

  1. Reply
    May 16, 2011 at 4:23 am

    my ex (he was my bf at the time) was able to get a loan a couple of years after his bankruptcy and bought a trailer…
    the way the finance company figures is that you cant file again for a long time so they know theyre gonna get their money…
    the first application he put in was approved….

  2. Reply
    May 16, 2011 at 4:29 am

    You cannot get any credit for at least 2 years. The banks have also recently been denying credit to people with good credit ratings due to all the loan defaults.

  3. Reply
    Amy E
    May 16, 2011 at 4:34 am

    With the forclosure rate so high right now you’re probably not likely to get approved any time soon. Banks are having trouble collecting on mortgages they thought were secure so are being very picky about the people they are loaning to. Just make sure you go to a bank and not one of those scam companies because they will rip you off.

  4. Reply
    May 16, 2011 at 5:33 am

    It has always been difficult or impossible to get a standard mortgage after filing BK. For obvious reasons.

    I can understand your logic, but it has one incorrect assumption. If a bank wanted to make 10,000 mortgage loans no matter what, and BKs rose they would have to lower lending standards.
    That is NOT the case now, in fact it is the opposite. And we have a mild liquidity crisis, so even if they wanted to make 10,000 loans, which by the way would be very odd and cause all sorts of questions by regulators, stockholders, auditors etc, most of the large mortgage lenders do not have the capital to make the 10,000 loans they made in 2004 and 2005.
    Lending standards were greatly loosened as lenders thought property appreciation would bail out any bad loan, ie the borrower could just sell, or if the lender foreclosed the loss would be mitigated.
    So just on the lack of appreciation we can expect for at least 5 years would result in tighter lending.
    Who knows maybe you get a big mortgage next week, each situation is different.
    Advice, DO not apply for any type of credit for six months. In a month or two pull your credit report from, see if there are any errors.
    DO not let any other bad things happen like a cell phone charge off or a medical bill go to collections.
    If you want to own at some point, you will most likely need a bigger down payment, so start preparing for that.
    I am sure there were mitigating circumstances in your BK, but ask why you are looking to get back into debt so quickly? Home ownership is not the great thing it was 10 years ago.

  5. Reply
    May 16, 2011 at 6:16 am

    It could be tricky, but not necessarily impossible. Obviously, mortgage underwriting standards are much tighter than they were a couple of years ago…or even last year.

    Still, the FHA has no minimum credit score requirement. Also, Fannie Mae and Freddie Mac were just bailed out by the U.S. government so the mortgage marketplace should begin settling down (somewhat) soon.

    That doesn’t mean that the tighter lending restrictions are going to instantly relax, but you might have a shot with an FHA loan in the near future.

  6. Reply
    Dale K.
    May 16, 2011 at 6:29 am

    You can get credit cards the same day you discharge the bankruptcy. Rebuild credit with ONLY on time payments for a year and then with the correct down payment you can purchase another home.

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