I intend to apply for a mortgage and foreclosure and bankruptcy three years ago … help me here.?

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Ok I went through a bad divorce, bankruptcy, foreclosure on a house we lived in three years later, I have some personal loans, new car loan and two credit cards (these are only of a user very small). I made all my payments on time, rent and utilities. I do not have federal taxes on some back, but with payments out of my check each month. My fiance and I are renting a house of our host we play, I had my job for 11 years and he had his work a year, but have a good credit rating, but not much action . Are we able to get a loan fairly easy …. I am a little worried! We can not much, but can afford the closing costs.

  1. Reply
    April 29, 2011 at 9:19 pm

    No you won’t easily be able to get a loan especially with a bankruptcy and foreclosure. The bakruptcy will need to be discharged for at least 2 yrs to be considered and the foreclosure will seriously hurt your chances. Plus you still have a tax lien. You’ll need credit scores above 680 and a 20% downpayment to have any shot. The mortgage industry is not working for people with your situation now and you’d never be able to obtain mortgage insurance to get a loan without the 20% down. Keep paying bills on time and slowly your credit will continue to improve.

  2. Reply
    April 29, 2011 at 9:41 pm

    I don’t know why the mortgage broker got a thumbs down. Mortgage brokers are the people to see when you damaged credit. Although, having been a Realtor myself and seeing all kinds of scenarios I doubt you’ll be able to get a loan. I think the bankruptcy will hold you back for at least 7 years. Also back taxes are REALLY bad.
    I filed bankruptcy 6 years ago and paid all my back taxes 3 months ago but the Lender, and I have a shoe in since I was a Realtor, said I didn’t qualify for a loan of $ 70,000 even with my b/f who has excellent credit. However, he could buy the property without me on the mortgage.
    Good Luck. Bad credit SUCKS! I’m right there with ya!!
    P.S. I can thank MY ex and the nasty divorce for all this too!!

  3. Reply
    April 29, 2011 at 10:23 pm

    NO, and I don’t think you’re ready yet.
    Congratulations on working on rebuilding your credit, but you’re NOT there yet. As you have way too much debt, owe back taxes, and don’t have enough of a down payment, you will only be eligible for a higher rate loan, plus have to pay PMI, if some one will even touch you. It will not be easy to get a loan, and probably be impossible. You really should WAIT, get your financial house more in order first.

  4. Reply
    April 29, 2011 at 10:49 pm

    BACK TAXES ????

    Short term loans like cars and credit card are easy to get after bankruptcy. Foreclosure on the home is a whole different ball game. You should have made a bunch of effort to sell the home rather than foreclosure… You can ask for a mortage — NO is more than likely the answer—but you ask… Before you ask pay off all your debt.. is in your favor…Having a car loan for the what ever priod does not help… It was on the Business News that after foreclosure it would probable take 10 years before you will be able to get another loan…
    I would NEVER recommend that you and the land lord write up a land contract.. If you miss one payment he the LL gets the house back and keeps all the money you gave him…You get eviction notice… Usually takes 60 days to move you out…

  5. Reply
    April 29, 2011 at 11:48 pm

    All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrowerand are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.

  6. Reply
    Richard N
    April 29, 2011 at 11:54 pm

    From what I’ve seen in your question, you should be able to get a loan. Most people assume that it isn’t possible with a bankruptcy in their past, but it’s actually attainable.

    I’ve seen it done with the bankruptcy just over a year old, as long as the person has rebuilt their credit to a respectable score.

    Good Luck

  7. Reply
    April 30, 2011 at 12:22 am

    Good finance question! I know of an organization that gives up to $ 1500 to people to help them with their rent or mortgage. It’s available in most US cities, I highly suggest you check it out.


    Best of Luck.

  8. Reply
    April 30, 2011 at 12:57 am

    Another option to consider … Seller Financing. Is your current landlord willing/able to offer to hold the note for you. They would actually serve as the bank and you’d continue to make your payment to them directly – the terms are worked similarly to a conventional loan, just minus the need for credit, etc.

    Since you already have a history with the landlord, they might be willing to consider this. Another possible option is a Lease Option … kinda like rent to own, where you give a down payment to the owner, and a portion of your monthly rent is applied toward the purchase of the home.

    Food for thought.

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