Answers (2)
Unless your banksruptcy was caused by circumstances that were verifiable (and documented evidence exists) and beyond your control i.e.; death of a spouse who was the primary wage earner, lay off from a long term position, illness (and there were only medical bills discharged) then regardless of your FICO score you will find it nearly impossible today to obtain a mortgage in spite of the advice you receive to the contrary.
It is because of the current financial and political climate banks are under scrutiny by investors like Fannie Mae, Freddie Mac and the Federal Housing Administration to originate higher quality loans than we have in the past decade in order to improve investor appetite for the Mortgage Backed Securities those loans are bundled in and eventually sold on Wall Street for a profit with the expectation those mortgages will perform as agreed.
Under most circusmtances when one is declared in federal court to be bankrupt it is because there has been either serious disruption of that persons ability to produce income, they have exhausted theirs savings and sometimes but not always they have debt leveraged a lifestyle they were unable to support otherwise. It is because of this most lenders want to see 3 - 4 years of behavior that is contrary to the activities which occured that lead to the person becoming bankrupt. Because a home purchase represents the single largest purchase a consumer typically makes, today's lenders typically won't seriously consider an applicant who has been discharged from bankruptcy less than two (2) years.
My advice;begin working on your credit report. here is a link to an article I authored a few years ago which is still very relevant titled
Finally, remember that owning a home is not a is a right but a privilege and financial responsibility that should never be entered into lightly. Because you will need to work hard to become eligible for a loan, when a lender does take a risk on you, you are likly to perform as agreed because you have worked so hard to acheive your goals of homeownership.
Good luck and remain patient and with steady plodding you will get where you want to be.
It is because of the current financial and political climate banks are under scrutiny by investors like Fannie Mae, Freddie Mac and the Federal Housing Administration to originate higher quality loans than we have in the past decade in order to improve investor appetite for the Mortgage Backed Securities those loans are bundled in and eventually sold on Wall Street for a profit with the expectation those mortgages will perform as agreed.
Under most circusmtances when one is declared in federal court to be bankrupt it is because there has been either serious disruption of that persons ability to produce income, they have exhausted theirs savings and sometimes but not always they have debt leveraged a lifestyle they were unable to support otherwise. It is because of this most lenders want to see 3 - 4 years of behavior that is contrary to the activities which occured that lead to the person becoming bankrupt. Because a home purchase represents the single largest purchase a consumer typically makes, today's lenders typically won't seriously consider an applicant who has been discharged from bankruptcy less than two (2) years.
My advice;begin working on your credit report. here is a link to an article I authored a few years ago which is still very relevant titled
Tips for Home Buyers: PRACTICAL TIPS FOR IMPROVING YOUR CREDIT SCORE http://tinyurl.com/ygvlrp4
Additionaly I recommend to continue to save money and remain debt free if possible and pay all of your monthly obligations on time. When you become eligible for a loan this will show a prospective lender that the behavior or circumstances which caused your bankruptcy are not likely to recur and that you are serious about owning a home. I also recommended you take class on budgeting and home ownership. Likely your community college system or housing agency offers both free of charge.Finally, remember that owning a home is not a is a right but a privilege and financial responsibility that should never be entered into lightly. Because you will need to work hard to become eligible for a loan, when a lender does take a risk on you, you are likly to perform as agreed because you have worked so hard to acheive your goals of homeownership.
Good luck and remain patient and with steady plodding you will get where you want to be.
- Michael Emery, "MikeEmery"
- Contributions:8181
What do you do?
Find out what your FICO score is and go from there.
Lenders who use Zillow won't quote on FICO scores below 620. If you have no idea what your score is, you can't count on them to give you a quote - which costs them money.
Find out what your FICO score is and go from there.
Lenders who use Zillow won't quote on FICO scores below 620. If you have no idea what your score is, you can't count on them to give you a quote - which costs them money.
I did not get any quotes on my loan request (ZR-PFMWTBJ). Can someone help me figure out why?
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