BK 7 and foreclosure in past. We want a mortgage now. Who to turn to?

[Chicago]

We were discharged in Jan 2005. We foreclosed on our house and filed BK7. Both are still on our reports. We have been renting since and now want to get prequalified for a house. We make $75k together and the house we are looking at is 300k. We don't have anything to put down. But could come up with 6k if we really needed to (my parents want to help us get back on our feet-we're so lucky. I prefer not to borrow from them though. We made this mess ourselves).

 

Which mortgage lenders should we look at? Do we even have a chance and at what rate?

 

Thanks!

Edited September 19, 2008 by Chicago

[resqume1]

I am sure one of the pros will be along shortly to advise. They will want to know what are your scores now? What is your credit like since bk? When did your house actually foreclose? What kinds of monthy bills and tradelines do you have right now?

 

At the very least you will need to have a 3.5% down payment which is about 10,000 in the price range you are looking at (if my math is right).

[CallMeJo]

when did the house auction off?

 

 

Basic Foreclosure Guidelines from Fannie Mae

Foreclosure

 

5-year time period from completion date

Additional requirements that apply after 5 years up to 7 years following completion date:

• The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representative credit score of 680.

[SJP0tato]

We don't have anything to put down. But could come up with 6k if we really needed to

 

Unfortunately 0 down loans have all dried up & blown away. There's some whispers of modification to the program where the seller can contribute to the DP, I think it's planned to be based on credit score with more PMI required for anything under a 680 (please someone correct me if I've read/heard wrong).

[athensgaguy]

If you have been clean for a couple of years, you might be able to go FHA, as long as the Foreclosure is more than three years old, too.

[Guest Bree82]

I am sure one of the pros will be along shortly to advise. They will want to know what are your scores now? What is your credit like since bk? When did your house actually foreclose? What kinds of monthy bills and tradelines do you have right now?

 

At the very least you will need to have a 3.5% down payment which is about 10,000 in the price range you are looking at (if my math is right).

 

3.5%? We just got preapproved for FHA on Monday and its 3% down. I know this is changing... did it already change?

[athensgaguy]

I am sure one of the pros will be along shortly to advise. They will want to know what are your scores now? What is your credit like since bk? When did your house actually foreclose? What kinds of monthy bills and tradelines do you have right now?

 

At the very least you will need to have a 3.5% down payment which is about 10,000 in the price range you are looking at (if my math is right).

 

3.5%? We just got preapproved for FHA on Monday and its 3% down. I know this is changing... did it already change?

Isn't it usually 3% down and about 3% closing costs, so about 6% to close?

[CallMeJo]

FHA is 3.5% DP if you close after 10/1.

[GeorgiaPeach08]

I am sure one of the pros will be along shortly to advise. They will want to know what are your scores now? What is your credit like since bk? When did your house actually foreclose? What kinds of monthy bills and tradelines do you have right now?

 

At the very least you will need to have a 3.5% down payment which is about 10,000 in the price range you are looking at (if my math is right).

 

3.5%? We just got preapproved for FHA on Monday and its 3% down. I know this is changing... did it already change?

 

Did you have a foreclosure on your credit report?

[GeorgiaPeach08]

I am sure one of the pros will be along shortly to advise. They will want to know what are your scores now? What is your credit like since bk? When did your house actually foreclose? What kinds of monthy bills and tradelines do you have right now?

 

At the very least you will need to have a 3.5% down payment which is about 10,000 in the price range you are looking at (if my math is right).

 

3.5%? We just got preapproved for FHA on Monday and its 3% down. I know this is changing... did it already change?

 

Did you have a foreclosure also?

[cedski]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

[Guest Bree82]

Did you have a foreclosure also?

 

Me? No. Ive never owned a home before. I was told my DP is 3% (were going to have seller pay closing costs) another 0.5% isnt a big deal but it would be nice to know. We wont close until mid Nov. Start looking next weekend and in our price range the market it hot. You have to put an offer in pretty much the day it hits the market.

[GeorgiaPeach08]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

[cedski]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

 

a 120 day late is considered a foreclosure......with or with out a lis pendens being filed.

[GeorgiaPeach08]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

 

a 120 day late is considered a foreclosure......with or with out a lis pendens being filed.

 

That's what I thought. Assuming I had a credit score of 680+, down payment of 10%, 2008 self-employed earnings of $140K before deductions (possibly $70K after deductions) and verifiable assets of $100K............would I be able to get a stated income loan today?

[CallMeJo]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

 

a 120 day late is considered a foreclosure......with or with out a lis pendens being filed.

 

That's what I thought. Assuming I had a credit score of 680+, down payment of 10%, 2008 self-employed earnings of $140K before deductions (possibly $70K after deductions) and verifiable assets of $100K............would I be able to get a stated income loan today?

 

 

when was the 120 day late?

 

why stated? what was 2007 earnings after deductions + depreciation?

 

what is the purchase price?

[GeorgiaPeach08]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

 

a 120 day late is considered a foreclosure......with or with out a lis pendens being filed.

 

That's what I thought. Assuming I had a credit score of 680+, down payment of 10%, 2008 self-employed earnings of $140K before deductions (possibly $70K after deductions) and verifiable assets of $100K............would I be able to get a stated income loan today?

 

 

when was the 120 day late?

 

why stated? what was 2007 earnings after deductions + depreciation?

 

what is the purchase price?

 

120 day late was in November 2006. House was sold in November 2006.

2007 AGI was $40K. Gross was $100K

Purchase price: $360K

I can put 10% down.

[cedski]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

 

a 120 day late is considered a foreclosure......with or with out a lis pendens being filed.

 

That's what I thought. Assuming I had a credit score of 680+, down payment of 10%, 2008 self-employed earnings of $140K before deductions (possibly $70K after deductions) and verifiable assets of $100K............would I be able to get a stated income loan today?

 

 

when was the 120 day late?

 

why stated? what was 2007 earnings after deductions + depreciation?

 

what is the purchase price?

 

120 day late was in November 2006. House was sold in November 2006.

2007 AGI was $40K. Gross was $100K

Purchase price: $360K

I can put 10% down.

 

You'll need to wait till 11/2009 for a FHA loan........and be able to provide tax returns......so i would focus on showing more income in 2008 and then file early in 2010 so you have 2 years of good tax returns.

[GeorgiaPeach08]

When was the foreclosed house sold? The date you are eligble is 3 years from the sale date of that house and you must provide evidence of the sale date ie a copy of the county records.

 

cedski, what if you had a string of 120 days late but the lender never began foreclosure proceedings? The house was sold BY THE OWNER soon thereafter. Does the underwriter still consider that a foreclosure if it's seen on a buyer's credit report? Thanks.

 

a 120 day late is considered a foreclosure......with or with out a lis pendens being filed.

 

That's what I thought. Assuming I had a credit score of 680+, down payment of 10%, 2008 self-employed earnings of $140K before deductions (possibly $70K after deductions) and verifiable assets of $100K............would I be able to get a stated income loan today?

 

 

when was the 120 day late?

 

why stated? what was 2007 earnings after deductions + depreciation?

 

what is the purchase price?

 

120 day late was in November 2006. House was sold in November 2006.

2007 AGI was $40K. Gross was $100K

Purchase price: $360K

I can put 10% down.

 

You'll need to wait till 11/2009 for a FHA loan........and be able to provide tax returns......so i would focus on showing more income in 2008 and then file early in 2010 so you have 2 years of good tax returns.

 

I'm trying to think outside the box to get the loan processed immediately. Here's what I was thinking:

Amending the 2007 tax returns to reflect a higher AGI

Showing assets of $100K in a business checking account to demonstrate financial health

 

By the way, my middle fico is 680

 

Do you have any ideas to assist in getting this loan processed?

[CallMeJo]

 

120 day late was in November 2006. House was sold in November 2006.

2007 AGI was $40K. Gross was $100K

Purchase price: $360K

I can put 10% down.

 

You'll need to wait till 11/2009 for a FHA loan........and be able to provide tax returns......so i would focus on showing more income in 2008 and then file early in 2010 so you have 2 years of good tax returns.

 

I'm trying to think outside the box to get the loan processed immediately. Here's what I was thinking:

Amending the 2007 tax returns to reflect a higher AGI

Showing assets of $100K in a business checking account to demonstrate financial health

 

By the way, my middle fico is 680

 

Do you have any ideas to assist in getting this loan processed?

 

 

With the foreclosure (120 day late), your only option is hard money, Which means 35% dp +.