I plan on applying for a mortgage loan and had a foreclosure and bankruptcy 3 years ago…help me here.?

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Ok I went through a bad divorce, bankruptcy, forclosure on the home we lived in. Three years later, I got a few some personal loans, a new car loan and 2 credit cards(they only have very small usage). I have made all my payments on time, with rent and utilities. I do owe some back federal taxes but are having payments taken out of my check each month. My fiance and I are renting a house we’re playing on buying from our landlord, I’ve been at my job for 11 years and she has been at her job for 1 year but has a good credit score but not much activity. Will we able able to get a loan pretty easy….I’m a little worried!!!!

  1. Reply
    April 29, 2011 at 9:08 pm

    Better wait till you have some money to put down like 20% or the intrest will kill you.

  2. Reply
    April 29, 2011 at 9:13 pm

    As long as the bankruptcy was at least 2 years ago and the foreclosure at least 3 years ago, you SHOULD be able to do an FHA loan. The taxes might be a problem if the IRS has liens or judgements. You will want to check your credit for these. annualcreditreport.com will give you free credit reports once a year, no catch. Your lender will see the tax payments on your paystubs, so just be upfront about it. They want to approve you as much as you want it. that’s how they get paid. usually, you will need to show 12 months cancelled checks for your rent. Not always, but it helps. Good luck.

    Also, because i already see one on here…..you do NOT need 20% down!!!!!! FHA rates are about the same as conventional, somedays better. talk to a LOCAL lender.

  3. Reply
    Sean L
    April 29, 2011 at 9:21 pm

    You should be ok…. Bankruptcies matter the most within the first 2 years and Foreclosures matter the most for the first 3 years…. the further they get off the radar, the better but you will see a lot more doors open to you now than you would have a year ago.

    The other factor is that the cause of all the negative stuff can be documented (divorce decree) and it seems that you have reestablished yourself nicely. This will show that the bad credit was uncharacteristic and not a habit, which the lenders should like.

    I handle this type of situation all the time, if you are in the US and you haven’t yet chosen a Mortgage Planner, I would love to throw my hat in the ring and show you what I can do for you. My website and e-mail address are listed below…. please feel free to reach out to me at any time.

  4. Reply
    Real Estate Guy
    April 29, 2011 at 10:01 pm

    get married then buy the house.

  5. Reply
    April 29, 2011 at 10:55 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
    April 29, 2011 at 11:44 pm

    You’re question is an interesting one. You shouldn’t worry too much about the foreclosure and bankruptcy. Assuming all the paperwork was handled in a mannerly fashion, and you have taken steps to reestablish your credit to a decent level, it can be worked out.

    Also, you do not need 20% down at all. It’s nice, but not needed. FHA guidelines will allow for a mere 3% down and less in some circumstances.

    However, my advice is to sidestep the purely local aspect and shop around, using both local and nationwide mortgage brokers to handle your specific situation.

    Contact if you have any further questions.

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

    I don’t know if it’s different from state to state, but I was told that you are not eligible for a home loan for at least 2 years after bancruptcy is final and 4 years after home foreclosure. Contact a local mortgage company. I’m sure they’ll be happy to tell you without any obligation.

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