Rent to own and Bankruptcy

[Imgettingoutofdebt]

I'm currently in a condo rent to own, I have not filed for bankruptcy, but I'm seriously considering it, but I wasn't sure if I rent to own and file for bankruptcy would I actually get approved for a loan to buy the condo? Also, I'm currently in a 2 year lease, so if I file for bankruptcy now, how long would it take me before I could buy something?

[radi8]

I'm currently in a condo rent to own, I have not filed for bankruptcy, but I'm seriously considering it, but I wasn't sure if I rent to own and file for bankruptcy would I actually get approved for a loan to buy the condo? Also, I'm currently in a 2 year lease, so if I file for bankruptcy now, how long would it take me before I could buy something?

 

2 years minimum from a bankruptcy, assuming you do some rebuilding and have clean credit after discharge.

[Imgettingoutofdebt]

Is there anyway that I would be able to get a mortgage with a higher interest rate? I've heard that sometimes people can be approved for a loan but there interest rate is higher, is this not true? Also I have until June 2011 before my lease expires, if I file in March or so, and then have my credit for a year and 3 months, is that possible?

[jop3]

That used to be the case, but it's virtually unheard of now. I work with one lender that does it, but not only is the interest rate super high (9-12%), but they also require a 25% down payment. If you had that kind of money, you wouldn't be filing BK, right?

[Imgettingoutofdebt]

That used to be the case, but it's virtually unheard of now. I work with one lender that does it, but not only is the interest rate super high (9-12%), but they also require a 25% down payment. If you had that kind of money, you wouldn't be filing BK, right?

 

This is true, and that's a lot of money, the difference is I will have at least 20% down because they put away half my rent for 2 years which is 20% and the 5% I would be able to come up with myself, but the interest rate is crazy, and I definitely don't want to pay that, that's insane.

[I Need help too]

Would it be possible for the current owner to extend your lease for an extra year or 18 months? That would allow you to rebuild, more down payment if they put half your rent in a DP fund, and it would be much easier to get a loan once your 2 years past discharge.....

[Imgettingoutofdebt]

I can ask him that would be great, but do you think that I would be able to find a decent mortgage rate? Or would the rate still be ridiculous? I know the landlord is willing to work with me, so I'm hoping that this is a possible route.

[vintagespeed]

if you're considering BK then is it wise to be buying a house? i mean, if you tread water for a year or two and have closed on the house, then file BK what happens to your house?

[nothingtolose]

if you're considering BK then is it wise to be buying a house? i mean, if you tread water for a year or two and have closed on the house, then file BK what happens to your house?

 

I think OP was referring to filing BK first and then waiting for her lease to expire and getting a loan to buy the condo after BK.

[vintagespeed]

I think OP was referring to filing BK first and then waiting for her lease to expire and getting a loan to buy the condo after BK.

 

i lack the reading comprehension skillset. :emb:

[Brian B The Loan Professor]

Before you get too far with the planning 2 years is for FHA so you had better make sure that the condo is FHA approved otherwise conventional is 4 years after BK. FHA is strict on condos and the development must be on their approved list.

 

Good Luck

B