Jump to content

Foreclosure vs. IIB


badcreditsucks
 Share

Recommended Posts

Is there a difference in having a forclosure on credit report versus having it show IIB? I mean when you actually apply for a mortgage and possibly obtain one, wouldn't they be able to find out that there was a foreclosure? Or wouldn't you have to disclose that anyway?

Also, is it true that one can obtain a mortgage 3 years after foreclosure under first time buyers programs? I'm trying to get my ducks in a row...Thinking about applying for a home loan some time next year and will have 10,000 for down payment, but I have some more credit repairing to do.

Any suggestions?

Link to comment
Share on other sites

If there has been a FC, the lenders will find out about it, even though it has been removed from your credit report/s. I don't know how they find out, but it is the case.

You can actually get a loan 1 day from FC, just as you can get a loan 1 day from BK. The problem is your credit scores. To get any kind of loan with a FC, you need a minimum of a 525 for a 80% LTV loan (balance could be from the seller, as a seller carried 2nd mortgage) At 550, you would qualify for a 85%, at 575-90%, and at 600 - 100%. At 12-36 months Post FC, there are a lot more options that open up.

For instance, at 24months, you can get a 100% with a 580 score.

It is just a guess, but from your myfico score, you probably have high utilization on your CC's, or collection accounts. Once you get those taken care of, your scores will rise. If you dont' have at least 3 credit cards, with over 24 months history, get them and make that a goal. Another thing that helps a lot is a car loan, that starts out at over 5K and the monthly payments are over 150.00. If you have a car loan like that, and you are ready to pay it off and keep the car, don't if you want your credit scores to continue to improve. Just get another loan soonest, or get another car. Many of the lenders I deal with will allow a trade like this to just continue forward.

Hope that helps and was not too much info.

Charles

Link to comment
Share on other sites

I am actually going to pay my auto loan off really soon, $21K loan, never paid late in 5 years. I have 3 collection accounts as well to pay off (will pay for delete), and hopefully that will raise my score. Other than that everything else is IIB. Once everything is paid, I will apply for a few credit cards to rebuild my credit. My dilemma is that right now I am in school and I work, and I can receive grants for up to $14,000 for a home. Once I am out of school (approx. 6-8 months), I probably won't qualify for any grant money. I read something about a type of loan that you can apply for if you anticipate an increase in income. Does anyone have any info on that?

Link to comment
Share on other sites

Unless your auto loan is "over", I would suggest that you don't pay it off. I helps both your credit scores and your credit history to have an active tradeline that started over 5K, and the payments are over 150.00 per month. I would almost suggest that you refinance 5K of the car and use that to pay off your credit cards.

What you may mean is that wage earners can "state" their income. I use this when 1) two wage earners in a family, and one has bad credit, then I use the good credit person, and state the income used on the application as a combination of both incomes or 2) when it is a sales person/self employed person, that is able to lower their reported income, but really it is much higher, for instance, when I traveled the US, I was allowed to deduct a lot of things that would have "happened" anyway, ie food, cars, etc. or 3) what you are talking about, where in 6 months my client is getting a raise that will go one for the forseeable future, I will add that amount to their current income, and "state" it as such.

Let's see if you can raise your scores to the 600-620 range so you can use stated income, and do it in the time you have to still qualify for the grant. There are lots of resources on this site that can guide you in that direction.

Charles

Link to comment
Share on other sites

  • 2 weeks later...

Thanks Charles. I have reconsidered paying off the car :wink: (car payment if $485 a month by the way, and the loan ends in May 2005). I will put the money into a checking or savings account and do a auto pay each month, that way I don't even have to think about it. I am in the process of paying for deletes on my 3 collection accounts.

Can you help me with information on assumable non-qualifying loans. The house that I am currently living in was my aunt's who died in late 2003. It is currently owned by my 10 aunts and uncles (1/10 each). I know that they are not interested in buying it and probably just want what they consider to be "their share" of the profit from the sale of the house. Until I get my scores up will a assumable, non-qualifying loan be something that I could look into. I mean even if I had a high interest rate to start off with, later down the line I could re-fi once my credit is better. Thanks in advance for your help!!

Link to comment
Share on other sites

One suggestion would be to purchase the home, paying 80% of the agreed upon sales price to them now, and at a max of 5 years time, pay them the balance.

Getting an 80% Loan now will not be that hard probably, and in 2 years, your scores can be high enough (I should not say "can be" , because I know you are going to work on it, so lets say will be), to refinance into a 95% or 100% loan. Shoot, with any luck, they might start gifting you money/so that at the end of the time, you would not owe them much of anything.

Just start being nicer to that one aunt that you hardly ever call...

Hope that helps.

Charles

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.