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Can I get a loan within 1 year of a bankruptcy discharge...

I am not asking for a ridiculously high amount. I have found several homes under $30,000.  If I have a substancial down payment, can I even hope to find a lender?  My home will soon be taken by the bank, and I won't have a place to live. I hate to rent a home for $800-$900 when I can buy a low cost home and pay half of that.  Please help.
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December 03 2013 - Painesville
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Depending on your down payment why not save and buy it for cash?
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December 03 2013
There are a few unfortunate problems that I see happening with your situation. First off, it will be hard to find a lender that will lend only 30k. Most lenders have a minimum lending limit of 50k. So if you do find a house over 50k, it is possible to get a loan after 1 year with FHA loans as long as you can show an economic event that resulted in loss of income. The unfortunate part is that it seems that you will be going through a foreclosure that hasn't even started yet. This means you will have to wait another year or more after the foreclosure is closed. I recommend that you spend some time rebuilding your finances during this waiting. Rebuild your credit and savings so you will be prepared when the waiting period is over. Well I hope this helps and good luck!
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December 03 2013
You've stated your home will soon be taken by the bank. Which means not only was their a bankruptcy but there was also a resulting or subsequent foreclosure. If your home hasn't "been taken" yet, then your clock hasn't even begun ticking. Watch your county auditor's site to see when the home actually gets transferred out of your name. That's your start date for the seasoning/waiting period. On the flip side to answer your question, we'd only be able to consider "extenuating circumstances" to consider you for a mortgage 12 months out of bankruptcy (foreclosure). Financial mismanagement and/or divorce are not considered extenuating circumstances (not to say that applies to you) something like head of household getting sick or other major medical reason would be considered eligible. One circumstance or reason for filing added this year as an acceptable extenuating circumstance is the "back to work initiative". What that means is if you were resigned to filing bankruptcy because of loss of work or due to reduction of income, then 12 months may be your minimum waiting period. If not, and if the true reason is something we could not consider extenuating circumstances, then your wait could be 3 or more years. If I can help by answering any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only. Contact and licensing information can be found on my profile.
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December 03 2013
 
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