jmw1212

Credit after BK and several FC's After perfect credit prior? Any hope?

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What are our chances of ever qualifying again for a mortgage, after BK and FC?..long

I am posting this here as well as the mortgage forum as I think you both can help. Sorry so long:

Ok we have a pretty grim situation. Rewind back 28 years, 18 years old bought my first car with my Dad co-signing. Then a year later sold it and my credit enabled me to buy another without a co-signer. Years would go by and I would continue to buy and sell cars, property never making any late payments. Several cc's with perfect credit. 780 beacon...Fast forward to 1998. Built my second home, and some property. A few years later bought some more property. Inherited some $ and paid some of the lots off. My husband and I were doing great financially. Both of our credit reports were perfect.

In 2002 we started our our company. By this time, we had even more property. All paid on time. Never late. We decided to move the business out of our home and bought a commercial building (personally), then rented it to our company (there were two other owners) The company needed a loan so we gave two of our (paid off) deeds to the bank as collateral. Beacon score still 780 and never a late payment on either report. The business was thriving, things were great. We had nice cars, we had money in the bank, we had my IRA from the company I used to work for. Savings bonds. Things were going great. We then had two children. Then the economy tanked.

Surprisingly our company was still signing up work and getting allot of government jobs. We had to start turning work away as we couldn't keep up and the overhead was killing us. The banks had stopped lending. We were on our own to keep the company going. So we took out my IRA to make payroll and went through all our savings, paying our own bills, making payroll and paying vendors. We stopped paying ourselves as owners. Finally after trying to collect hundreds of thousands of $ with no avail, we shut the company down in April of last year. Due to all the personal guarantees, loans, debt and harassing phone calls, we consulted several attorneys and decided to file chapter 7 bk personally. Our credit immediately tanked to 511. We also had to give up my car to a voluntary repo, we ended up selling my husbands truck later.

The banks filed a motion to relieve the automatic stay and foreclosed on four of our properties (two which had been paid prior to putting up as collateral for the company) One of the properties was our commercial building. We had two weeks to get everything out of this 4,000 s/f building and find a place to put all our tools and office equipment including 9 years of file boxes, etc. We were able to rent a storage trailer and get out in time. The bank sold it for 1/3 of what we owed after refusing to help us keep it but lowering the interest rate. Same thing with one of the other lots. The two other tracts are still for sale. The other large track was foreclosed on from another bank and we lost it this January. They have it listed for 1/2 of what we owed which was 1/2 of it's appraisal (Listed for $290 owed $500 and worth 1mil)

We now are trying to save our home, next week PNC will go to court to ask for relief of the stay to start foreclosing. We have been trying to do a loan mod since Oct 2010, but we were still paying our mortgage back then. They advised us to stop paying for two months, so reluctantly we did. Then when we tried to pay at least one payment, they would not accept it without all the arrears. We were not able to pay that so we are now 13 payments behind. Meanwhile, going back and forth trying to get the loan mod approved (HAMP) finally after a year of fighting, back and forth requiring updated documents, (we send everything required on time), they denied our mod, stating it was denied because we were active in BK and didn't reaffirm. (both which are not required according to HAMP regulations)

At the same time., they sent us a new package for an in home mod. The date to get the package in was Feb 7th, but the application was not included. I called and was told it was in the mail. The next day I received it and it had a new date Feb 22nd. I called to confirm this new date and was told that was correct. I even confirmed with a supervisor. Well on Feb 15th, I was sent a letter stating they had closed my case and would continue to with foreclosure once the stay was lifted. I was infuriated. So I wrote a letter to the comptroller of the currency reporting there illegal practices. Finally received a letter from the executive office of PNC stating they were reviewing our case and would reply in writing by March 22nd. (we were told by a friend who is a foreclosure realtor that two of her friends reported this way and got their mod approved within 3 days. That their executive office called them to approve it. They apparently don't like the heat from the OCC (Comptroller of the currency)...

Back to my score, it's looking better these days up to 648 and I haven't applied for new credit yet as we haven't been discharged as of yet. (myfico says it's due to my long great credit history prior to the bk) Sorry this is so long, but now for my question, what are the chances of us getting a mortgage later down the road? What time frame should I wait before attempting and what type of interest rate (based on today's rates) should I expect with a bk and several foreclosures on our credit file? (actually the foreclosues don't show up on the report, but they are public record) Also should we continue to modify the home or do a deed in lieu or short sale now and try and rent for the waiting period? Our home needs allot of cosmetic work, but we want to keep our kids in the school they are in and there are very few rentals around due to all the foreclosures. I've also considered trying to find a rent to own, but that doesn't look too promising either. Everyone just wants to sell. Any advice would be appreciated. Also if I should post this on other forums, let me know. thank you so much.

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Thanks I just replied to your post there.

Take a look at my post for this thread in the Mortgages section.

Might find something useful there.

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