Who gives mortgages to people with recent poor credit history?

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If you have a recent bankruptcy and foreclosure that was included in the bankruptcy, all within the past 2 years, where can you go to get a mortgage?

For example, we are looking at a house around the $ 150,000 range, and can put down about $ 60,000 or $ 70,000. I talked to a guy at my bank, and he said it wold be 3 years until anyone would give us a loan, as in, 3 years after the foreclosure which hasn’t even happened yet, but the chapter 7 was discharged a year and a half ago.

I know it would be a higher interest rate. Can anyone at least give me an idea of who to call? A bank isn’t going to work, who else is there?
I have looked a tiny bit into seller financing. Is there a good website or something anyone recommends where I can read about it.

I would think you would have to spend more to get something, not to mention get a lawyer to make sure the contract is good.
Isn’t there a pretty big risk putting down a huge down payment on a seller financing? I mean, who does that down payment go to anyway?
seller financing seems FAR to risky to put down a big down payment.

I guess renting will have to do

4 Comments
  1. Reply
    ben
    May 2, 2011 at 5:55 am

    Your best bet is to find a seller who will do a “seller finance” for three years. You will not get a loan from a lending institution for at least three years. Even after three years your rate will be very high.

    http://www.mortgagenewsdaily.com/wiki/Seller_​Financing.asp – will be able to answer all of you seller finance questions along with sample contracts.

  2. Reply
    WV MAN
    May 2, 2011 at 6:04 am

    Do you live in Chicago? Can your vote be bought? If not, you will have a hard time.

  3. Reply
    Graybeard
    May 2, 2011 at 6:40 am

    You might get a good response from a seller-financed deal, with such a large down payment. Otherwise, in the current market, the advice from the bank guy sounds about right.

  4. Reply
    bdancer222
    May 2, 2011 at 7:39 am

    You won’t be able to get a mortgage from any regular mortgage lender until your bankruptcy is at least 2 years old, even with a large downpayment. The foreclosure just makes it even worse.

    I got to wonder how in the world you could file chapter 7 18 months ago and have $ 60/70K for a downpayment?

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