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Mortgage After Bankruptcy........


messiecake
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I posted this in Bankruptcy as I didn't see this section-SORRY!!!

Anyway here goes............

Our Chapter 7 Bankruptcy was discharged in December.

We want to purchase an $89,000 house.We have the 20% down payment.

My husband has a good,Government job(and has had it for 6 years).

Due to B'ruptcy we haven't been able to find financing!!!! NONE will touch us due to the cHapter 7.

There has to be an honest company who wants our business-anyone know who they are ???

Thanks!

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Have you pulled your credit reports? Your each have three for a total of six credit reports.

I recommend that you get your reports from each of the big three CRA's separately.

You need to see if any debts that were discharged in the BK CH 7 are being incorrectly reported. This is often the case. You need the accounts to report "discharged through chapter 7 bankruptcy" and "zero balance".

If you have 4 months or more to work with you should get two secured credit cards for $250 or $500 worth of credit line as soon as is possible. If your husband is the only one that works then he should get the cards and it is his credit reports that you should work on.

Generally it is easy to get a mortgage after a CH 7 BK but the interest rate can be high depending on the score. Depending on where you live and considering that the housing bubble is about to burst you might consider renting a house for 3.5 years and use the time to work on your credit. If you can get your husbands mid score up to 681 you can get a good interest rate. 721 would be perfect.

It may be that you only want to borrow a small amount to purchase a 89K house. Most mortgages these days are 150K or more. That may be why you are having a hard time finding a lender. Whatever you do don't accept a variable rate mortgage. Get a fixed rate mortgage.

Good luck!

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Experian does not sell a real FICO scores to people so their is no reason to purchase a score from them. :? Trans Union sells a fake score for $9.95 extra.

To be safe it's best to get a score only from Equifax when you get your report from them and get the other two scores from myfico.com for $14.95 each.

http://www.equifax.com

http://www.transunion.com

http://www.experian.com

http://www.myfico.com

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I spoke with Charles on the phone and he was VERY informative!

Our R/E agent reconmended Wells Fargo and they offered us,with our CR's like they are,9.5 %.The house we are interested in has the seller paying 100% of closing costs.

I dont think we can do any better than the 9.5 right now..........We're mulling it over but are likely going to take it because iM sick of spending a grand a month on RENT!!!!!!!

Ive gotta get the C.R's cleaned up regardless!

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I am sure that if you spoke with Charles, he has already told you what I am about to tell you........and any others who are thinking the along the same lines.

Please take the additional steps and get your credit report corrected. One to two months and a $30.00 to $40.00 investment in your credit reports will save you at least that much monthly on your mortgage payment.

With a 20% down payment, their should be very little reason for you to be paying 9.5% interest rate on your home. Just seems to me that the perception of coming off a bankruptcy, that a buyer should "expect" to pay a higher interest rate. It does not need to be so.

Please take the time to get at least some fo these issues handled before accepting such a B.S. interest rate. Wells Fargo is a big fish "smelling the bait," and waiting on a bite. It happens all the time, but if you get prepared, you will not have to deal with such.

Good Luck.

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Where can you buy a house for $89,000??

Up until about June of last year, you could buy a secondary beach-front 3 BD, 2 1/2 bath for 77k hereabouts.

Now the same house is over 170K.....

DF's house 7 years ago sold new for 63K, she paid 111K and it now worth 135k. Nice equity in 6 months.

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