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Pentagroup ignored DV letter in March... now sending documents in JUne


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Gee, I'm sorry...struck a nerve, did I?  I'll be more careful in the future.

 

But, an endoresment from an organization devoted to debt fixing doesn't carry much weight with me...

 

And, how do you guarantee your clients actually pay you?  Do you sometimes have to put your "collector of the year" hat back on?

 

Actually, Steve Rhode is a consumer advocate that protects consumers from debt fixers. You should spend some time on his site as he has a wealth of information regarding all the BS scams out there. 

 

Believe it or not, I have never had one client who has paid their settlements not pay me. 

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Well then Admin, I suggest that you pick up your phone and call 3 random mortgage brokers and ask them. And then come back and let us know what you found out. Thanks. 

 

 

I called 3 mortgage brokers and was told that I could get a loan at 9% interest rate adjustable with 30% down.  Not a nice option.  

 

In regard to credit cards after bankruptcy: this is a very informative post - http://money.msn.com/credit-cards/after-bankruptcy-new-credit-cards

 

Based on personal experience, it's tough to get cards after a BK.  

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I called 3 mortgage brokers and was told that I could get a loan at 9% interest rate adjustable with 30% down.  Not a nice option.  

 

Based on personal experience, it's tough to get cards after a BK.  

 

9% interest and 30% down is not a conventional mortgage. That's a hard money loan. 

 

Who did you call? 

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9% interest and 30% down is not a conventional mortgage. That's a hard money loan. 

A hard money loan is interest only for 6 months and 50% down.  What I was quoted was B paper.  Conventional loans are not an option until 5 years after a BK per FNMA and Freddie Mac guidelines.  You stated two years is all it would take.  

 

Who did you call? 

 

I called a bank (no products available), a mortgage broker (B paper available only), an FHA mortgage broker (no products available). 

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A hard money loan is interest only for 6 months and 50% down.  

 

A hard money loan is not the loan you described. They vary widely... See - http://en.wikipedia.org/wiki/Hard_money_loan

 

The terms you quoted are without doubt hard money terms...

 

 

What I was quoted was B paper.  Conventional loans are not an option until 5 years after a BK per FNMA and Freddie Mac guidelines.  You stated two years is all it would take.  

 

That's not what I stated. I said - "Once all of your delinquent accounts have been satisfied for 2 years, you will generally qualify (credit-wise) for a conventional mortgage, providing that you don’t have any lates on your mortgage history.

 
And if you wanted to buy or refinance via FHA, you should generally qualify (credit-wise) after 12 months. Assuming again that you don’t have any mortgage lates.
 
If you choose to resolve your debts by way of Chapter 7 bankruptcy, you will generally qualify (credit-wise) for an FHA loan after 2 years of discharge. Chapter 7 bankruptcies generally discharge around 90 days after filing. However, you must establish some credit history in those two years without any delinquency.
 
Also, if your bankruptcy resulted from conditions outside of your control, such as the death of your spouse, serious illness or natural catastrophe, you may be able to qualify 12 months after your discharge date."

 

Good try though...  

 

 

I called a bank (no products available), a mortgage broker (B paper available only), an FHA mortgage broker (no products available). 

 

Specifically, which bank and mortgage brokers? 

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A hard money loan is not the loan you described. They vary widely... See - http://en.wikipedia.org/wiki/Hard_money_loan

 

The terms you quoted are without doubt hard money terms...

 

 

That's not what I stated. I said - "Once all of your delinquent accounts have been satisfied for 2 years, you will generally qualify (credit-wise) for a conventional mortgage, providing that you don’t have any lates on your mortgage history.

 

 

http://www.mortgagesbymark.com/blog/mortgage-lending/how-long-after-a-bankruptcy-can-i-buy-a-house/

 

It clearly states that although extenuating circumstances may be considered, it will be hard finding a bank that will do your mortgage.  My contacts said they didn't have one mortgage loan product on the books to help  a person fresh out of BK.  Not even FHA is possible. 

 

Who did I call?  I called a friend who has been doing mortgages for 20 years and he said anyone with a recent BK will be hard pressed to get a loan.  I just refinanced for a conventional mortgage and they wanted such incredible documentation - I can't imagine what it would be with a BK.  I have excellent credit and getting a loan was tough for me. 

 

I also just took out a hard money loan recently for an investment property and the terms I gave you were what they quoted me.  This is personal experience, looking up something on Wikipedia and actual practice can be two different things   

 

The B paper I quoted was Ford Motor Credit (yes, they do mortgages) and that's the product available for someone with poor credit (which a bankruptcy clearly is).  What is your actual experience  getting and obtaining such B paper loans?  

 

My "nice try" is backed up by years of experience, both professional and personal. 

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@Jared_Strauss 

 

In trying to arrive at an informed opinion, I visited Steve Rhode's web site that you referenced earlier.  He spews out more words than you, with only slightly less meaning.  From what I gathered his gig is selling his "knowledge" on how bad the various forms of debt fixing are.  In effect, if you have received a "high rating" from him, it only means you're not as bad as the others.

 

In studying his site for an hour or so, I'm not really sure what his position is...but he sure has a lot of books and papers for sale.

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Willing and Admin its time to pack up those apartments in the city and move to your new house in the country.

http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html usda.gov

racecar has no books or papers for sale.

USDA Rural Residential 100% Financing

Rural Home Loans For People With Bad Credit And Single Mothers

Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.

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http://www.mortgagesbymark.com/blog/mortgage-lending/how-long-after-a-bankruptcy-can-i-buy-a-house/

 

It clearly states that although extenuating circumstances may be considered, it will be hard finding a bank that will do your mortgage.  My contacts said they didn't have one mortgage loan product on the books to help  a person fresh out of BK.  Not even FHA is possible. 

 

Who did I call?  I called a friend who has been doing mortgages for 20 years and he said anyone with a recent BK will be hard pressed to get a loan.  I just refinanced for a conventional mortgage and they wanted such incredible documentation - I can't imagine what it would be with a BK.  I have excellent credit and getting a loan was tough for me. 

 

I also just took out a hard money loan recently for an investment property and the terms I gave you were what they quoted me.  This is personal experience, looking up something on Wikipedia and actual practice can be two different things   

 

The B paper I quoted was Ford Motor Credit (yes, they do mortgages) and that's the product available for someone with poor credit (which a bankruptcy clearly is).  What is your actual experience  getting and obtaining such B paper loans?  

 

My "nice try" is backed up by years of experience, both professional and personal. 

 

I never said fresh out of BK. I said 2 years after discharge...

 

And here's your proof... 

 

http://homeguides.sfgate.com/can-fha-loan-after-bankruptcy-7505.html - This says 2 years 

 

http://www.realtor.com/advice/how-soon-after-a-bankruptcy-can-we-get-a-home-loan/ - So does this one

 

http://www.fha.com/fha_requirements_credit - And this one is straight from the horses mouth -

 

I googled "how long after a bankruptcy can I buy a house with fha" in case you want to read about it from additional resources.

 

The link to wiki was to express the fact that hard money loan terms vary greatly. 

 

My experience with B paper is extensive considering I was in mortgage brokering in my early 20's. That experience helped me greatly while I was in collections as I knew how to prequalify people and was able to show them if it would make sense to pursue a refinance as a method to pay their delinquent debts and lower their monthly expenses.  

 

B paper has been pretty much non-existent for the last 6 years or so. Although there are signs that it is beginning to make a come back. 

 

I take back the "nice try" I was feeling a bit too frisky the other day... :) 

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@Jared_Strauss 

 

In trying to arrive at an informed opinion, I visited Steve Rhode's web site that you referenced earlier.  He spews out more words than you, with only slightly less meaning.  From what I gathered his gig is selling his "knowledge" on how bad the various forms of debt fixing are.  In effect, if you have received a "high rating" from him, it only means you're not as bad as the others.

 

In studying his site for an hour or so, I'm not really sure what his position is...but he sure has a lot of books and papers for sale.

 

 

What are you talking about? Steve doesn't sell anything on his site. All the information is free. 

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http://www.mortgagesbymark.com/blog/mortgage-lending/how-long-after-a-bankruptcy-can-i-buy-a-house/

 

It clearly states that although extenuating circumstances may be considered, it will be hard finding a bank that will do your mortgage.  My contacts said they didn't have one mortgage loan product on the books to help  a person fresh out of BK.  Not even FHA is possible. 

 

Who did I call?  I called a friend who has been doing mortgages for 20 years and he said anyone with a recent BK will be hard pressed to get a loan.  I just refinanced for a conventional mortgage and they wanted such incredible documentation - I can't imagine what it would be with a BK.  I have excellent credit and getting a loan was tough for me. 

 

I also just took out a hard money loan recently for an investment property and the terms I gave you were what they quoted me.  This is personal experience, looking up something on Wikipedia and actual practice can be two different things   

 

The B paper I quoted was Ford Motor Credit (yes, they do mortgages) and that's the product available for someone with poor credit (which a bankruptcy clearly is).  What is your actual experience  getting and obtaining such B paper loans?  

 

My "nice try" is backed up by years of experience, both professional and personal. 

 

 

By the way, here are the historical interest rates for FHA mortgages - http://portal.hud.gov/hudportal/documents/huddoc?id=fharates_current.pdf

 

You'll notice that in 2013 it's 3.53%. Although, that rate has obviously risen in the last couple of weeks like the conventional rate has.

 

But as you can see, they're fairly consistent with each other. 

 

And as far as down payments go: they're 3.5%.  See - http://www.zillow.com/mortgage-rates/finding-the-right-loan/fha-loan/

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In order to qualify for an FHA loan after a BK, the borrower must qualify financially, have re-established good credit, and have a stable job.

I took this from the FHA mortgage page.  The operative word is re-establishing good credit which is very hard to do once you are out of a bankruptcy.  My friend in the mortgage business says he has a tough time qualifying people for FHA loans that have a Chapter 7 bankruptcy.   

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  • 3 weeks later...

I took this from the FHA mortgage page.  The operative word is re-establishing good credit which is very hard to do once you are out of a bankruptcy.  My friend in the mortgage business says he has a tough time qualifying people for FHA loans that have a Chapter 7 bankruptcy.   

 

I just called Bank of Oklahoma to inquire on their FHA mortgage loans for consumers who have filed Chapter 7 bankruptcy. 
 
According to Ethan Wagner, who is a loan officer at BOK (who can be reached at 918-488-7112), generally speaking, to meet the definition of establishing new credit under FHA guidelines all you need is one credit card that has been opened and paid on for 6 months. He also indicated that a 640 credit score is required by his bank. Which he said is fairly easy to achieve for people in this situation. 
 
And are you ready for this? It doesn't matter if the reestablished credit is secured or unsecured. 
 
Capital One commonly extends credit to people who have recently filed Chapter 7. 
 
But, even if you don't qualify for their unsecured card, you could obtain their secured card and generally achieve the same result in regard to qualifying for a FHA mortgage 2 years after discharging a Chapter 7 bankruptcy.
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I just called Bank of Oklahoma to inquire on their FHA mortgage loans for consumers who have filed Chapter 7 bankruptcy. 
 
According to Ethan Wagner, who is a loan officer at BOK (who can be reached at 918-488-7112), generally speaking, to meet the definition of establishing new credit under FHA guidelines all you need is one credit card that has been opened and paid on for 6 months. He also indicated that a 640 credit score is required by his bank. Which he said is fairly easy to achieve for people in this situation. 
 
And are you ready for this? It doesn't matter if the reestablished credit is secured or unsecured. 
 
Capital One commonly extends credit to people who have recently filed Chapter 7. 
 
But, even if you don't qualify for their unsecured card, you could obtain their secured card and generally achieve the same result in regard to qualifying for a FHA mortgage 2 years after discharging a Chapter 7 bankruptcy.

 

 

I plan on buying a house, my credit report more or less:

 

4 CO reporting 0 balance and transfer/sold all are have first delinquency on February 2009.

 

2 Collections from the CO one for 2k, the other for 3.5k (the two missing I sue them)

 

1 settled cc with OC, original DOFD February 2009, settled feb 2013.

 

Various good accounts in good standing closed before 2009, will be deleted anywhere from 2017/2022

 

3 cc good accounts closed dated from 2011/2012

 

2 car loans paid and closed, one with a 30 late, the other with 3 30 late.All lates are from 2009, no lates in 2010/11/12 and 13.

 

2 open accounts good standing never late, can do a 0% util, total CL 3k between the two, both opened march 2013, so in September 2013 they will be 6 months old.

 

So do I qualify to buy a house? I do have 10k saved and planning on keep saving until 2017 and do a 20/30% down payment.

 

I do meet all other requirements, like employeed with same employer for 2 years, etc.

 

Credit Score for june was 645.

 

If you qualify me for a house I will believe you, and give you some cash, or "commission". In 2016 I will be fully capable of getting one, but might wait to 2017 to do a bigger down payment.

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I plan on buying a house, my credit report more or less:

 

4 CO reporting 0 balance and transfer/sold all are have first delinquency on February 2009.

 

2 Collections from the CO one for 2k, the other for 3.5k (the two missing I sue them)

 

1 settled cc with OC, original DOFD February 2009, settled feb 2013.

 

Various good accounts in good standing closed before 2009, will be deleted anywhere from 2017/2022

 

3 cc good accounts closed dated from 2011/2012

 

2 car loans paid and closed, one with a 30 late, the other with 3 30 late.All lates are from 2009, no lates in 2010/11/12 and 13.

 

2 open accounts good standing never late, can do a 0% util, total CL 3k between the two, both opened march 2013, so in September 2013 they will be 6 months old.

 

So do I qualify to buy a house? I do have 10k saved and planning on keep saving until 2017 and do a 20/30% down payment.

 

I do meet all other requirements, like employeed with same employer for 2 years, etc.

 

Credit Score for june was 645.

 

If you qualify me for a house I will believe you, and give you some cash, or "commission". In 2016 I will be fully capable of getting one, but might wait to 2017 to do a bigger down payment.

 

You more than likely will need to address the "2 Collections from the CO one for 2k, the other for 3.5k" previous to applying. 

 

You'll probably qualify (credit-wise) for FHA within 12 months of doing so, possibly sooner. 

 

Also, please understand that it is very possible that your credit score will go down when you address those accounts initially, due to the recency of activity.  

 

If it does, it will generally rebound with time. You could also potentially accelerate the recovery of your credit score by acquiring a secured credit card. The increase won't be immediate when doing so, but should make a positive impact on your score after you've made on-time payments for 6 months. To maximize that increase, you'll want to be sure that your outstanding balance on the card doesn't exceed 10% of it's credit limit. 

 

If I were you, I would call 3 local mortgage brokers that specialize in FHA. Don't have them pull your credit, so that way you don't get dinged with inquires or alert your remaining delinquencies to the fact that you may be interested in buying a home. Instead, ask the mortgage brokers if you could provide a copy of your report to them so they may offer you a cursory review so you may become aware of specifically what they will require.

 

If you do, please share your experience. It will be helpful to many.     

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I do have a credit card, and a store card, so no need for a secure cc. Why will I want to take care of the collections? at this point both of them are outside SOL, and both collections got a C&D, so whatever they do they will violate and I ill sue them and take care of it with them paying me, not the other way round.

 

So basically I won't qualify till 2016, that I knew from the start.

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I do have a credit card, and a store card, so no need for a secure cc. Why will I want to take care of the collections? at this point both of them are outside SOL, and both collections got a C&D, so whatever they do they will violate and I ill sue them and take care of it with them paying me, not the other way round.

 

So basically I won't qualify till 2016, that I knew from the start.

 

Th reason for the secured card? A third positive tradeline will benefit you further.

 

In respect to why you may have to address the collections: it could be a condition in order to qualify.

 

That's why I say to call 3 local mortgage brokers and inquire with them so you may find out for sure.

 

I wouldn't assume that you would have to wait till 2016, unless you stick to your plan. Like I said, you may qualify much sooner than that.

 

In respect to your current plan of attack, you may want to debate the fact that you could probably negotiate settlements on your own for 20 - 50% of what you owe. You may want to ask yourself if spending $1,100 - $2,750 to expedite your goal of buying a home is worth it (if it's a condition for qualification)....  

 

Also, I ran into an article today where there were some really insightful comments regarding personal experiences with rebuilding credit after bankruptcy. The article itself is a bit misinformative regarding the impact of a secured credit card, but the comments are worth the read...

 

http://www.thestreet.com/story/11982768/1/three-big-donts-of-rebuilding-credit.html?puc=yahoo&cm_ven=YAHOO

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In respect to why you may have to address the collections: it could be a condition in order to qualify.

 

 

In other words, in order to qualify for a mortgage you must waive your rights and pay a debt that is, according to the law, uncollectible. No one can accuse the home loan industry of not looking out for their debt collector buddies. 

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In other words, in order to qualify for a mortgage you must waive your rights and pay a debt that is, according to the law, uncollectible. No one can accuse the home loan industry of not looking out for their debt collector buddies. 

 

It can't be clearer then that. So if I settle the collections and void my rights, I get screwed with a 1099c, plus whatever I pay, in exchange I might qualify for a mortgage that will have the highest APR possible serviced by some jerky lender, it's a great deal, on top of that I would lose the possibility of cashing violations at a future time, I do hope they try to re-age the accounts and I'll apply for the mortgage and get denied so to sue them, among other juicy violations that can happen in the next 3 years, that will in fact get me a bit more savings for my goal.

 

And lenders only care about your last 2 years of credit, so still got time to get a 2nd cc, also I do not need a secure cc, I did get approved for non secure cc with no AF, and rewards.

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And lenders only care about your last 2 years of credit, so still got time to get a 2nd cc, also I do not need a secure cc, I did get approved for non secure cc with no AF, and rewards.

But they care most about the credit score, and your credit score factors in more than the last two years.  

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