pamelabe Posted October 6, 2004 Report Share Posted October 6, 2004 I am considering filing for BK but would like to buy a house soon. The card companies seem to be uninterested in settling (huge jerks) and I want to end this lingering debachel; I have tried twice to settle with them!One card has sued and won but with the wrong account number. My question is how long would it be for me to buy a house with a resonable score? Can I buy a house with a bankruptcy on my credit within a year of filing or even a month. Im not planning on buying a car and dont need anymore credit cards as I still have one I pay down. Does anyone know this? Currently I have a score of 670 with 3 credit cards I have walked away with. Link to comment Share on other sites More sharing options...
amortgageman Posted October 6, 2004 Report Share Posted October 6, 2004 Will your income with the minimum credit card payments allow you to afford the house now? If so, then I would get the new home and then deal with the credit cards, file bankruptcy, or whatever, on the credit cards only. Provided everything else checks out O.K., there are No Doc programs and No Ratio programs that will still get you into the home. The interest rates would be close to what you would qualify for post bankruptcy or even lower.Then again I cannot recall telling a person to buy a house and then let the credit cards go bad. The negatives to doing something like this, is that the credit card comapnies could go through the courts and attach a wage garnishment to your paycheck making it difficult to pay for the mortgage. If you were to file bankrukptcy, the credit scores may not stay at 670 either. Who knows where they might be by the time the bankruptcy is discharged.One of the girls in the office just closed last week on a mortgage that was only three days discharged, at 100% finacing with six percent seller concessions. She was literrally checking the PACER system daily for the discharge to record. All the rest of the work on the loan was already done, except the discharge. So in the right situation, it can be done.There is probably a better solution for you to get into a home and deal with the credit cards. How serious is this debt? $$$$$$. How much are you wanting to spend on a home? How about your income? Have you tried some of the zero interest offers for bank transfers? Link to comment Share on other sites More sharing options...
firstsource Posted October 6, 2004 Report Share Posted October 6, 2004 Bankruptcy is something that should be used as a last resort, that is for sure. Even though you can get financing & etc 1 day out of BK, it still "haunts" you for a long time. Sometimes with everyone calling you, it can be depressing, and the thought of BK sounds like a great solution. Unless it is a debt that you will "never" pay off, dont go that route. So, I would do as amortgage man suggested. Get your home (if things work right you could "have your keys" in a month or so.) Then handle the credit cards. It may take a few years to get them taken care of, but worth it. Charles Link to comment Share on other sites More sharing options...
Recommended Posts