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eichenberg

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  1. eichenberg

    Possible way to get mortgage after bankruptcy

    Did you file a 7 or a 13 bankruptcy? My wife and I are/were in your exact shoes.. Our 13 discharged in March. There are mortgage companies out there that will lend with a freshly discharged chapter 13. I spent several hours one day calling just about every mortgage company in my city and I found a few that would lend to us as well as a few companies out of state. So, they are out there, you just have to take the time and have the patience to call around. In the end we decided to wait as the housing market where we live is a sellers market. Buyers are in bidding wars and bidding 10K + over asking price. Fast forward to November, our landlord decided to sell all her properties and move to another state. She gave us first rights to buy her house. She was very generous and is selling at 10k under market value to us. I pulled out my list of companies again and contacted one of the out of state ones and we close on the house Jan 18th. So it can be done with less than a year after discharge in a chapter 13.
  2. Understood. Thank you for the explanation and breakdown. I wasn't even thinking about the costs of selling. Sent from my SM-G950U using Tapatalk
  3. I am assuming based on your post that your lease is about to end. If you are buying the current home at FMV, once you factor in the costs of buying the home (lender/third party fees) and selling the home (generally 5-6% of the sale price which is split between your agent and the buyer's) you will almost certainly lose money on such a short ownership window. You won't pay income tax on a loss, since there is no income to tax. When you are looking at your monthly costs of home ownership, make sure you also factor in property taxes, homeowner's insurance and maintenance/repairs, as well as other financing costs like MIP/PMI if you are putting little down. Once you have a complete financial picture of the cost of buying/selling the current place you might want to consider offering the current owner of the home extra rent to keep the home off the market until June. This will probably save you a lot of money, and prevent the hassle of moving twice. We actually have been month to month for several years now, landlord just wants to move close to family which is out of state. Speculation at this point, but house two houses down from us is exact layout of ours and sold for 165k 3 months ago. That house is in better shape than ours. So, I am basing all my figures on 165k. I would be putting about 13k down and PITI (Including pmi) would be around $975 (already got a quote on insurance and property tax in 2016 was around 750). We have been really lucky in that our landlord does not believe in rent increases every year. We have been paying same rent for 12 years now (bad for her, good for us). However, rent prices have skyrocketed in this area over the last several years. To rent a 3/4 bd 2 bath (we have a 3bd/1ba now) is about 1300-1500 monthly. So, I am stuck between a rock and a hard place. Buy and keep mortgage payment low, but turn around and sell in 12 months (possibly having to pay taxes/take loss) or rent/move now and have an increase in payment of around 600 plus cost of moving twice. This is what your deal looks like on the back of my cocktail napkin. I've rounded for simplicity. $ 2,500 - lender and third party (appraisal, title, etc.) loan origination fees 2,700 - upfront MIP (assuming FHA) - $155,000 loan amount x 1.75% 8,300 - real estate commission at sale - 5% of $165,000 $13,500 - one-time costs related to the purchase/sale Your $975 / month estimate doesn't seem feasible unless your property taxes and insurance are extremely low. My estimate (big guess on the taxes. Post back the actual for this home and I'll adjust). $ 740 - monthly mortgage payment ($155,000 at 4%) 100 - insurance (guess) 200 - property tax (total guess) 80 - MIP (0.6% of $155,000 loan amount / 12) $ 1,125 - total recurring monthly costs Add it all up, and in the first year you're looking at an approximate cost of $1,125 x 12 = $13,500 for recurring expenses, plus $13,500 in one-time costs related to the purchase and sale of the home, so $27,000 total. Divide that by 12, and you're at $2,250 a month. Perhaps most notable is that in this scenario, your entire $13,000 "down payment" would go to the costs of buying/selling/financing the home. You'd have none of that left at the end to put toward the next house. I am not paying a realtor (close friend is acting as buyers agents and not charging me). I am going to ask for seller to pay all closing costs, hoping for at least half, but will likely get her to pay it all since she won't have toi spend money to make house presentable if we move out.. I also have a close friend that is going to do the inspection in exchange for a case of beer. 2016 Taxes: Value Total Market Value: $128,660 Taxes Billed Base Tax Amount: $732.97 Special Assessment Amount: $0.00 Improvement District Amount: $0.00 Total Current Year Taxes: $732.97 Insurance: 08/29/2017 YOU USAA's Suggested Quote Homeowners Insurance 10/01/2017 $1,282.09
  4. I am assuming based on your post that your lease is about to end. If you are buying the current home at FMV, once you factor in the costs of buying the home (lender/third party fees) and selling the home (generally 5-6% of the sale price which is split between your agent and the buyer's) you will almost certainly lose money on such a short ownership window. You won't pay income tax on a loss, since there is no income to tax. When you are looking at your monthly costs of home ownership, make sure you also factor in property taxes, homeowner's insurance and maintenance/repairs, as well as other financing costs like MIP/PMI if you are putting little down. Once you have a complete financial picture of the cost of buying/selling the current place you might want to consider offering the current owner of the home extra rent to keep the home off the market until June. This will probably save you a lot of money, and prevent the hassle of moving twice. We actually have been month to month for several years now, landlord just wants to move close to family which is out of state. Speculation at this point, but house two houses down from us is exact layout of ours and sold for 165k 3 months ago. That house is in better shape than ours. So, I am basing all my figures on 165k. I would be putting about 13k down and PITI (Including pmi) would be around $975 (already got a quote on insurance and property tax in 2016 was around 750). We have been really lucky in that our landlord does not believe in rent increases every year. We have been paying same rent for 12 years now (bad for her, good for us). However, rent prices have skyrocketed in this area over the last several years. To rent a 3/4 bd 2 bath (we have a 3bd/1ba now) is about 1300-1500 monthly. So, I am stuck between a rock and a hard place. Buy and keep mortgage payment low, but turn around and sell in 12 months (possibly having to pay taxes/take loss) or rent/move now and have an increase in payment of around 600 plus cost of moving twice.
  5. What if you are buying the home you have rented for the last 12 years and sell it within a year of buying? Our landlord just notified us she is selling the house and wanted to give us first rights to buy. We were planning on buying as we have out grown this place, but need to wait until next summer when all our debt will be paid off. We can buy now and move however budget would be very tight and I don't want to get us in a bind. We pay 875 for rent and I have estimated mortgage would be about 1000 if we buy this place. If we move now into a bigger house mortgage will be about 1500. Waiting and paying off debt will make us more comfortable with that big a jump in payment. Plus with a down payment and any equity built up over the next year would give us a better down payment for that bigger house, that is if I don't have to pay a penalty, which I didn't even now about until I saw this post. Sorry for long post. Sent from my SM-G950U using Tapatalk

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