irishman

>>>>>>>>> CHARLES HELP!!!!! furt

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Hi there. Quickly, I have $40K in CC debt, still good scores 700+. Married House is in Wifes name who also pays mortgage and has Excellent credit and good paying job/ professional career. We have tried to keep going with paymesnt, although they are all 0% it just isn't cutting it. If I declare BK in Feb-March and we go looking for another bigger house to buy in 1.5 years, what kind of situation would we be in? I will most likely be working ft as a teacher and continue establishing my credit through student loan payment and CC's I will have.

If I maintain excellent credit pro-Bk and we lets say still put 20-30% down on a house, would it be too hard in getting a decent Mortgage?

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PLEASE DON'T GO BK.

There are a number of ways to fix your problem without doing that.

Maybe a 2nd mortgage, with your scores, can get you up to 95 or 100% of the value of your home.

With your scores, and depending on the DTI of your combined income, You could even qualify for 115% or 125% of the value of your home. (Ideal is, after you have paid off the CC's, you are in the 39-42% range (So, if you make 1,000, your total amount of minimum CC' payments, car payments, PITI (Principal-Interest-Taxes-Insurance) for your home, can be between 390 and 420 per month.

I know that it seems a lot of money to have "over your head" and that a BK will be a quick fix, but it will hurt your credit for 7 years. Being in the 700 club is such a hard goal to achieve, that I would want to help you do anything it takes to not go BK.

Charles

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If the mortgage industries stays the same, two years after bankruptcy with that size down payment would probably get you a decent loan.

You'd almost be better off just quit paying on the cc and just before they charge them off they will be willing to work with you. Probably be able to settle for 30 to 50% and negotiate no credit reporting. (Not a recommedation, just an option)

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I want to take a moment and say this again.

BK is not for temporary problem fixes, especially in this case. I think that everyone that has gone through a BK proceeding will confirm that they are not fun.

And, yes, I can get someone a loan 1 day from BK. But it takes 3 years post BK before you can get marginally OK rates, and then another year before you can get a conventional loan.

Every where you go, your interest rates will be higher for a long time. I spoke last week with a client that told me, very happy of course, that her rate on her car had gone from 24% to 5 something. The amount of money in extra interest she paid every month was incredible.

It does stay on your report for 7 years. So, even though in theory, it does not count against you, every time you have your credit run, it show up. Every loan application you fill out for homes, it has a check box "any BK's in the past 7 years.

I think that WillB is not giving good advice when he implys "no problem".

Charles

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