When can a person buy a house after filing for bankruptcy?
Answer:
Depends.
If in a Chapter 13, you may purchase a home with the court's permission and a willing lender, provided you have also made your court payments timely and are nearing the end of your bankruptcy.
For a Chapter 7 you have to wait 2 yrs after discharged, re-establish credit using telephone, utilities and rents, have no late payments for the previous 12 months, best having none since discharge, no unpaid outside of bankruptcy delinquent debt. 2 yrs on the job.
Apply for an FHA mortgage and if you meet the things I've noted herein, you should be able to buy a home. Write a letter to the lender's underwrite explaining the circumstances of your bankruptcy, like "I lost job after 10 yrs", ".divorce and was saddled with all debt", etc or what ever the truth is, and state that you have learned some hard lessons regarding debt and handling money. Be sure the lender has in-house underwriting, very important. You should be able to buy a home.
With a big suitcase full of cash.
Yes. Bankruptcy protects you from certain debts. But there are programs out there from banks that forgive past bankruptcy. I believe there has to be a time that has elapsed, though.
remember yer fucked for 7 years
And the interest rates will kill you!
Before they changed the bankruptcy laws the waiting peroid to be elligable for FHA was two years from discharge.with no problems.
I don't know exactly how long, but my sister waited 3 years after filing chapter 7 and finally decided to purchase a home.. she got approved and got an excellent interest rate. It depends how long you have been working and how much money you make. She had been working at her job for like 4 years and makes 40-50,000.
Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment or good credit.
Would you consider delaying your plan? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.
http://money.cnn.com/2006/09/08/real_est.
http://money.cnn.com/2006/09/05/real_est.
As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.
Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).
Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.
Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.
Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!
Good luck!
Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.ht.
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