striper1970 Posted April 12, 2005 Report Share Posted April 12, 2005 My Bankruptcy was finally discharged last week in NY. Can someone advice on a good mortgage company that I can refinance my 80/20 loans?Thanx Link to comment Share on other sites More sharing options...
firstsource Posted April 12, 2005 Report Share Posted April 12, 2005 There are a number of lenders that will refinance you, one thing that is of ultra importance now however is what are your credit scores. It normally takes about 30-45 days for the BK information to be reflected, and then you will know. I highly recommend that you have a tri-merge credit report run at that time, to make sure that everything is being reported correctly.If you were able to keep 2 or 3 credit cards through the BK, great, if not, I recommend that you get some credit cards going now. There are several information buttons flashing on top, try them, plus there are others.If you were able to keep your car through the BK, also great, if not, as soon as you can, purchase a 5000+ (Loan) car with payments over 151.00 per month. These things will enable you to get your scores in relatively no time. I have been talking with someone that had their bk7 discharged in October, and their scores are 620+ now. Hope that helps.Charles Link to comment Share on other sites More sharing options...
jq26 Posted April 13, 2005 Report Share Posted April 13, 2005 I second what Charles just wrote. While I can't speak directly to the mortgage issue, you need to get your scores up ASAP to set yourself up. I too had a BK7 recently discharged, in the last week of Oct 04. I haven't been successful removing the public record or ANY negative tradelines as of yet, but by simply opening up new tradelines and restarting payments on my student loans, my middle FICO has risen from 492 (26-Oct-04) to 651 (11-Mar-05). It can be done- read the 'Obtaining Credit' portion of this site and apply for BK friendly credit only-As far as I know, the public record will automatically put you in the sub-prime market, but your scores will allow you a half decent interest rate.13-Apr-05 FAKOs: 660/649/619 Link to comment Share on other sites More sharing options...
firstsource Posted April 13, 2005 Report Share Posted April 13, 2005 You will not be able to get anything but a sub-prime loan until 3 years post BK, so most people in your situation opt to go with either a 2 year ARM or a 3 year ARM. Just check the rates for both, and see what the max increase can be after the 2nd year, most of the time it is worth the "risk" to go with a 2 year, knowing that you will not refinance until 3 years is up.CHarles Link to comment Share on other sites More sharing options...
ThePeacock Posted April 20, 2005 Report Share Posted April 20, 2005 You will not be able to get anything but a sub-prime loan until 3 years post BK, so most people in your situation opt to go with either a 2 year ARM or a 3 year ARM. Just check the rates for both, and see what the max increase can be after the 2nd year, most of the time it is worth the "risk" to go with a 2 year, knowing that you will not refinance until 3 years is up.CHarlesWould it be remotely fair to say that this 3 yr mark for post BK loans has dropped to 2?I'm 18mo out of BK7 and a local mortgage company and an inhouse mortgage company for a builder said that the mark they look at is 2 yrs for an FHA. With scores about 630-640 and up w/ positive tradelines through the BK and new once since, and no lates.My scores are in sig, and going up. Is there any sample pre-approval appon here that maybe one of the veteran users can evaluate and give advise on an individuals situation?Thanks Link to comment Share on other sites More sharing options...
firstsource Posted April 20, 2005 Report Share Posted April 20, 2005 I stand corrected. I just checked the latest rules and ----------What are the Rules Regarding Bankruptcy?FHA may have the most lenient policies towards bankruptcy, but you still must have a valid reason and re-established credit. Generally, a bankruptcy will not necessarily disqualify a potential borrower. Guidelines are as follows:Chapter 7: Two years must have passed since the bankruptcy was discharged. (Note: Discharge, not Filing Date) The borrower must have re-established good credit without delinquencies for two years (or has chosen not to incur new credit obligations), and has demonstrated an ability to manage financial affairs. If the borrower does not incur new credit, such thing as, Car Insurance, Telephone, Cable, Utilities, Medical Payments, Etc. will be used to demonstrate re-established credit.Chapter 13: A borrower currently paying off debts through this process may qualify if a minimum of one year of the pay out period had elapsed and payment performance has been satisfactory with no new derogatory credit and the borrower must receive court approval to enter into the mortgage transaction.So, you should be good to go in 6 months. Charles Link to comment Share on other sites More sharing options...
Recommended Posts