Lender tells me that previously filed BK won't be an issue if I had it removed

[beeboah]

I filed a BK in 2002. I got it removed from all 3 reports based on technicalities.

I have read on here that even if you do that, the lender will still know if you filed a BK.

I talked to the lender today, and they said that is not true.

Which is it?

Thanks!

[jq26]

I filed a BK in 2002. I got it removed from all 3 reports based on technicalities.

I have read on here that even if you do that, the lender will still know if you filed a BK.

It is a public record. Its filed at the courthouse. A quick peak into LexusNexus, Westlaw, ChoicePoint, or another data broker that mines public records and they can see your BK (& all its details) regardless of your credit report. PACER is another place to see each and every document at a nominal cost. Besides, a tri-merge report is pretty thorough. One IIB account and the BK is obvious.

Let me add that I filed a BK7 in 2004 and my broker is telling me that my BK won't increase my rate. He quoted me roughly 6.675% 30yr full am fixed with 5% down when I had my reports pulled last week. He says the rate would be a bit lower but the property is an owner-occupied triplex so the rate is slightly higher.

Good luck.

[mjohns54]

I am a loan officer and deal with some of the top lenders. Once a BK is discharged you are eligible for a subprime mortgage. The rates would be the same as someone else with your exact credit scores who did not file for BK. The difference comes once the BK has been discharged for 2 years. At that point you will eligible for a prime loan (as long as your scores are above 640, and you have had no derogatory credit since the discharged BK).

[beeboah]

I am a loan officer and deal with some of the top lenders. Once a BK is discharged you are eligible for a subprime mortgage. The rates would be the same as someone else with your exact credit scores who did not file for BK. The difference comes once the BK has been discharged for 2 years. At that point you will eligible for a prime loan (as long as your scores are above 640, and you have had no derogatory credit since the discharged BK).

Thanks to you both. I just got off with Countrywide and they told me that my interest rate would still be higher although my BK was discharged for about 4 years.

I didn't let them pull my CR, but they sure scared me lol.

mjohns54...could you pm me if you are a subprime guy who may have something to offer?

Thanks

[mjohns54]

I pm'ed my info to you. Feel free to give me a call and we can see if we can figure something out.

[TheRoadBack]

be careful with countrywide, they are notorious for pulling credit without pp.

[pjfan]

I would not "lie" on the application. It will ask you if you have ever filed BK.

That is just my opinion

I filed a BK in 2002. I got it removed from all 3 reports based on technicalities.

I have read on here that even if you do that, the lender will still know if you filed a BK.

I talked to the lender today, and they said that is not true.

Which is it?

Thanks!

[VaSwtness]

I just closed on a house March 16. Filed BK 1/05. I did NOT have subprime rates. Closed with no money down and no closing costs. BK was not a factor for me. My fico mid-score was 670. I noticed you are in Northern VA. If you want the LO I used; send me a PM. I can't say what he'd do for you or if he could but it might be worth chatting with him at least.

Va

[jq26]

I just closed on a house March 16. Filed BK 1/05. I did NOT have subprime rates. Closed with no money down and no closing costs. BK was not a factor for me. My fico mid-score was 670.

I found out five minutes ago that after much negotiation my offer I put in on a triplex was accepted. Net $52,000 less than original asking price (got to love this buyer's market). In any case, my broker has pretty much locked me in at 6.675% with only 3% down and 5% seller's assist. My BK7 is stuck like glue on my credit reports so it was fully disclosed and I don't think it had any effect. The 6.675% is what it is because of the low down payment and the # of units on the property according to the broker.

BTW- when I submitted the offer for the property, it asked me plain as day if I have ever filed bankruptcy. I thought about writing "NONE OF YOUR BUSINESS" but my broker cautioned me not to. So I checked yes and had to give a reason and date. And nobody cared.