AngelHeath's Advice

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AngelHeath wrote:

Obtaining a Mortgage 1 year after bankruptcy discharge...advice please :)

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Oh my goodness...I'm glad I found this forum...all the advice has been amazing (I don't know how to pick the best answer because they are all good!).  This is exactly what I was looking for....advice on how we stand right now and how we can improve!  :)  The Medical debt is about $4400 ($3200 for my daughter's ER visit-she ate a mushroom from my sisters backyard that we couldn't identify...she was out of the Er in 6 hours with only a coal drink and the bill was outrageous!  And $1200 for my ER visit - food poisoning from crab after I attended a benefit crab feed-it was horrible). Her bill was actually $6000 but we paid it down to the $3200 since last October...now we are working on that.  And we got better insurance now so if anything else happens girls are covered with no deductibles-just a co-pay and I have a low deductible plan.  We will continue to pay that down and get back on track again!  To answer the question about the foreclosure-we did have a foreclosure that closed back in 2006 or early 2007...that was not in our bankruptcy as it had already been done.  What was in our bankruptcy was just all of our credit card debt from that house (when we were in our home, we were trying to remodel and update things and then life got the better of us).  I regret not filing bankruptcy back in 2006 when we left our home (before any assistance was available to homeowners going through rough times) and just starting fresh then.  Hindsight is 20/20 right?  But we are following a budget now and no new credit except my little credit card.  I am using that only for work related expenses that I get re-imbursed for (I'm a Commercial Loan Audit assistant working for a Bank auditing firm here in California)...so i pay that off just about every month. Thank you again everyone for your advice!  Angel :)
October 06 2011
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Obtaining a Mortgage 1 year after bankruptcy discharge...advice please :)
Hi,My husband and I filed bankruptcy (Ch 7) and it was discharged last October.  Our credit since then is good.  My credit score has actually gone up by 100 pts (still Fair at 638) and I'm not sure about his (didn't pull his).  The only negatives we may have on our credit now are two hospital bills (hit with two ER visits one month after our discharge and we didn't have good insurance-deductibles too high at the time) that we are trying to pay.  Other than that, I was able to obtain a small credit card to start re-building (limit of only $750).  What I'm wondering is, what kind of mortgage is it possible to get in our situation with our credit?  We rent right now...at abotu $1000 a month (and I hear the rent is going up).  I found a halfplex for only $114,000 in a great neighborhood (3 bed/2 bath) that I could see us living in for at least 5 years (and it's right across the street from my daughters school and has a big yard).  What type of down payment is required these days?  I believe if we were able to obtain a loan with even a lower down payment (say 5% but I hear it's hard to find a lender that will take less than 10%) and pay P&I, for a 30 yr fixed at 7%, the mortgage amount would be around $850/month...even lower than we are paying in rent.  What I'm wondering is...is it possible with 5% down payment....and with our credit....and if so, where do I go to try to obtain a pre-approval?  Researching...thank you!Angel in Carmichael, CA
October 05 2011
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