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Bankruptcy Chapter 7 discharged April 2014

Sorry I meant Chapter 13.
 My family has outgrown my household. I currently live in a 3 bedroom house with 6 members of the family. My info below
Credit 613 Experian, 595 Equifax, and 623 TransUnion
Current house loan $411K
Zillow estimate: 355K
Household income wife and I 11K monthly
Recently opend one secured credit card for 500.00.
Savings $40K

I basically need a bigger home. I am either going to add another room, $40K or if possible look into selling and buying another home.

Please let me know you thoughts. Thank you. 
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April 24 - San Diego
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Answers (7)

My family has outgrown my household. I currently live in a 3 bedroom house with 6 members of the family.
You're right...It's time to move up.


Current house loan $411K - Zillow estimate: 355K
The zestimate is known to be inaccurate in a lot of markets by around $50,000 for homes in this price range. Has anyone done a full CMA or appraisal yet which will account for your homes condition, view, etc.?

Household income wife and I 11K monthly
Good monthly income for your loan amount.

I basically need a bigger home. I am either going to add another room, $40K or if possible look into selling and buying another home.
If you're not attached to the home and willing to relocate, it may be best to buy/sell. Depending on your location and additional 1-2 bedrooms could cost well over 40k after all is done. (permitting, build, etc.)

My Question: Are you current on your payments? This can weigh heavily on whether or not you can purchase again anytime soon.

TIPS:

1) Get a Prelim Title Report - this will outline any liens on the property. Many times people have liens they're not aware of.
2) Get construction quotes for the addition
3) Get a REALTOR to provide an in-depth cma report.
4) Make sure the realtor provides a financial analysis (proforma) which can help you make a smart financial decision.

Patrick A. Hale, ABR, CCS, CDPE, CID, SRS
Chief Executive Officer | Broker of Record

The Local Realty, Inc.
A LocalRealtors.com Preferred Partner
CA BRE Lic. #01777558
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May 03
Profile picture for cynthia.eckersley
You might be eligible for HARP or HAMP to remodify your loan.  My mortgage was cut in half and my interest rate was locked in at 30% of my income, while 30,0---has no interest at all.  I am paid 1,000 a year toward prinicple as long as I make the loan payments on time.  I did not lose my house, and now I have equity when I am ready to sell it while the market improves.  It's better to live within your means then to take on more debt.  Perhaps with six people you could generate more income rather than taking on more debt after trying to get out of the debt payments you already owe.  Many people live in small spaces in order to pay off their debt since it is only a matter of time until they will be able to move on.  I have a friend who owed $ 80,000 in student loans and credit card debt who lived in a 500 sq ft apartment with her husband while paying off debts and she was debt free after 5 years.  Cut up your credit cards, pay off what you can starting with small payments or whatever is possible.  Don't ruin your credit with a bankruptcy and keep your integrity intact by paying your debtors.  Look at the solutions available to you.  Check out the website:   http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/hamp.aspx
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April 25
You can obtain a mortgage during a chapter 13 bankruptcy but you may have to wait. The length of the waiting period can depend on the type of loan you desire and which type of bankruptcy you had. You can obtain an FHA or VA loan during a Chapter 13 bankruptcy as long as you have made 12 months of satisfactory Chapter 13 plan payments, but you must have bankruptcy court approval to get the loan. In the case of either an FHA loan or a VA loan, you must provide an explanation of the bankruptcy. Although there is an exception for FHA loans. If you want a conventional loan, you must wait two years after receiving a Chapter 13 discharge. If your Chapter 13 case was dismissed without a discharge, you must wait four years from the date of the dismissal. If you would really like a mortgage there are also hard money loan options that you can consider. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
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April 25
Excellent Answer, Tracy - s4ndiego - you should reach out to her & discuss in more detail.
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April 25
You can be eligible to purchase with just a 12 month on time payment history on a Chapter 13, therefore if you are fully discharged you should be good. Because of the negative equity position on your current residence, you need to work with a Mortgage Professional that knows how to work with underwriting to be able to show you are not doing a "Buy & Bail". It also could be that the zestimate is not accurate. Depending upon where your property is located in San Diego, you may be in a better position than you think on your current home.Property values have increased substantially in all areas of our City & County so you need a better comp check. You will have to be able to qualify with your current housing expenses along with the housing expenses of the new home. Otherwise you may have to consider doing a short sale on the current property to eliminate those monthly costs. The best thing for you to do at this point is speak directly with a Mortgage Professional that can analyze all of the details of your situation and qualifications so you know your exact options. If you have any additional questions, my contact information is available on my Profile. All the best!!
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April 25
Your numbers show you are in a negative equity situation. If you are looking for cash out to do an expansion, that's not going to work. Also, if you want to sell you would have to bring funds to close or consider a short sale. If you can do a short sale without missing any payments then you may be eligible to repurchase immediately after.
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April 24
Directly from the HUD.gov website.

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that:
  • one year of the pay-out period under the bankruptcy has elapsed,
  • the borrower's payment performance has been satisfactory and all required payments have been made on time, and
  • the borrower has received written permission from bankruptcy court to enter into the mortgage transaction.

FHA is one of the quickest wait periods and most common loans among borrowers post-bankruptcy. Good luck! -Kjell

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April 24
 
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