Anyone buy a house after bankruptcy?

We unfortunetly see no way around filing in January and my biggest concern is eventually being able to buy a house. We have looked into every other option and this is the only one that will work for us. Because we have been trying to take care of old debt for so long we cant even manage to put away a dwn pmt. right now and are struggling with our current bills.

Re: Anyone buy a house after bankruptcy?

a bankruptcy stays on your record for 7 years. every application is goign to ask you if you declared bankrupbcy in the past 7 years.

right away you wont get a mortgage - or if you do you will be paying an extremely high interest rate.

as soon as you are able to, make sure you build your credit back up!
it will be hard getting any kind of credit after declaring bankruptcy - i woudl open a secured credit card to help build up credit

good luck!

Re: Anyone buy a house after bankruptcy?

You can buy a house aFTER bk BUT MANY LENDERS WILL ONLY GIVE YOU 80% FINANCING-YOU WILL HAVE TO SAVE SOME $$ FOR A DOWN PAYMENT. mY dh IS A BROKER SO IF YOU WANT HELP EVENTUALLY fm ME

Re: Anyone buy a house after bankruptcy?

Thanks! See I was a little leary because the lawyer we spoke to said that we would be able to apply for credit right away and that we could buy a home within 3-4yrs afterward.

Re: Anyone buy a house after bankruptcy?

you would be able to apply for anything you want - but getting approved is a different story.

Re: Anyone buy a house after bankruptcy?

I worked as a wholesale bank rep-meaning I sold to mortgage brokers so I would pre-approve the deals-I worked for Countrywide BC-mostly people with mid to low credit scores. Our programs for BK started at 80% without the BK being discharged and went up from there. I did this when the rates were at their all time lowest so I don't think the rates woudl be the same. But I would say 1-2 points higher for someone with a BK

Re: Anyone buy a house after bankruptcy?

Save your money! You'll need a good down payment.

ETS: We haven't been bankrupt but my friend's father was. I think the bigger concern was that he still had not changed the habits that got him into bankruptcy so after being bankrupt he lost a house again to foreclosure.

Message edited 11/3/2006 2:59:57 PM.

Re: Anyone buy a house after bankruptcy?

Have you consulted a debt consolidator? I have heard that some people have been very successful in managing their rising debt this way.

Re: Anyone buy a house after bankruptcy?

most credit counseling programs ruin your credit anyway - you might as well have the protection of bankruptcy if you are going to do that.

Re: Anyone buy a house after bankruptcy?

We have friends who filed for bankruptcy 3 times; once before they bought their house and twice after. You wouldn't believe the stuff they own and got approval for. Don't despair. It can all work out.

Re: Anyone buy a house after bankruptcy?

Re: Anyone buy a house after bankruptcy?

I thought to declare bankruptcy you had to stop paying your bills? which would wreck your credit


edited- under the new laws- I had a friend who looked it to it- and I am pretty sure that's what the lawyer told her

Message edited 11/3/2006 4:31:55 PM.

Re: Anyone buy a house after bankruptcy?

Re: Anyone buy a house after bankruptcy?

Thanks for all of your opinions and ideas. See we have no credit cards and our debts are from when we were much younger. The interest accrued is to much for us to catch up now. We have tried working it out with companies and paid settlement offers and such to eliminate debt but what seems to be happening is that more and more things are popping up as creditors keep selling and purchasing our debts. We have already met with a lawyer and feel that at this point it's our only option left if we ever want to catch up. We have gone over the new BK laws with the lawyer as well. We have long over come our teenage spending habits but just cant come back from the past debt. I do know that it is not impossible to get credit afterward nor is it impossible to purchase a house. I was just looking to gather more info. from people who have already gone through with the experience. I have no intention of applying multiple times and we will not be wiped clean of debt because we will still have a truck payment as well as student loans. We just need a fresh mature start at our future. We are by no means just deadbeats looking to get away with not paying creditors.

Re: Anyone buy a house after bankruptcy?

Since I like to keep my financial stuff private I'm posting under an assumed name. My husband and I declared bankruptcy several years ago due to thousands in medical bills and credit cards. The day we obtained our discharge we were able to pick up a new car. Less than two years after the bankruptcy we were able to purchase our house. We got a FHA mortgage and only had to put down 3%. The interest rate was no higher than anyone else's at the time. We did have to provide a letter to the bank explaining the bankruptcy. We did do our homework before hand though - and used a broker who found us the best rate. Wish you nothing but the best and happy house hunting!

Re: Anyone buy a house after bankruptcy?

Thanks alot!

Re: Anyone buy a house after bankruptcy?

I'm a bankruptcy lawyer and the first question I had was: If you KNOW that you are going to do this, why are you waiting until January? If it's to save to pay attorney fees, I can see. But some people think that they will keep spending on credit for just a few more months, then file bankruptcy on all of it. That's a huge problem and I won't file for someone who is looking to do that. If you know for sure that you plan to file, get it behind you sooner so that you can get on the road to recovery. I've had clients show me the credit offers they got after bankruptcy. You can definitely get credit cards, but the terms are not as good as they are for someone with better credit. You can probably find a lender to buy a house, but if your bankruptcty is a Chapter 7, that means that you have little to no money in the bank. Therefore, you probably won't be buying a house for at least a year, possibly more. There is time to re-build your credit. If you are currently able to put away money, you're really not eligible for Chapter 7. Sorry if I am jumping to conclusions that you are planning to go Chapter 7.

Message edited 11/4/2006 10:39:49 PM.

Re: Anyone buy a house after bankruptcy?

First off, No absolutely not waiting until January because I want to spend more money before filing. We are waiting because that is when we will have the lawyers fees in full. I would rather pay it in full then the payment plan they offered us. Secondly, we are not planning on buying a house for atleast another two years because we want to be set in our jobs before taking on the responsibility of a house pmt. Also what I think some people dont realize is that there are good people out there that made financial mistakes and have learned from it and just cant come from under the debt. Not everyone who files bankruptcy is trying to beat the system to repeat it again. DH and I were irresponsible TEENAGERS financially(gold cards should not be given to most 18yr. olds) and have medical bills from two of our children who were very sick for along time when we had NO insurance. We are in our mid 30's now and for the last 6-7yrs have been trying to pay down our old debt and it isnt getting any easier. We have 5 kids to provide for and cant dump every paycheck or tax check into old debt. I have one child that is getting ready for college. So we are far from trying to scam anyone by spending more and creating more bills to file bankruptcy with. We have discussed it with the lawyer and are not looking to absolve any of our current bills like the truck pmt. or store cards we have now. Just the things from way back when. He said it is possible to do this to some extent. We are also meeting with another lawyer because we want to make sure that we are not being promised things that are not going to happen. So after getting info. from here, research on the internet, speaking to family and another lawyer we feel we will be prepared enough to make a definete decision. I do appreciate all the opinons and advice you ladies have given, so thanks

Re: Anyone buy a house after bankruptcy?

Message edited 9/11/2011 1:47:56 AM.

Re: Anyone buy a house after bankruptcy?

Thank you!

Re: Anyone buy a house after bankruptcy?

Is your old debt all on credit cards? If not, what kind of debt is it?

Re: Anyone buy a house after bankruptcy?

We have medical bills, old cell bills from like 1990, credit card debt. That's really it. Alot of the credit card debt was paid off on settlements but I was told by a friend who did the same that when he went and bought his house the settlements he paid came up and they made him pay the balances. So I dont know.