Need advice regarding the purchase of a home chapter 7

I am in the middle of filing for Chapter 7 and I would like to know of anyone else who has done so (please feel free to FM me) or is planning on it or thinking of it, etc.

This is a very difficult decision of my family and myself; however, it needed to be done.

For obvious reasons, I needed to create a fake account. I am a frequent poster on all of the boards and I really am embarrassed by this.

My question is, for those that have done this or are thinking of doing it, what are you learning as far as purchasing a home goes? We are looking to move from our town home into an actual house and was wondering what it will take. 2 years? 3 years? A larger down payment?

Thank-you for your help and advice!

Need advice regarding the purchase of a home chapter 7

You need 2 years from discharge to qualify for a FHA loan and you'll need to clean up your report a little, have reestablished credit, middle score 680, 3.5% down payment, no new delinquencies etc. If you're foreclosing on a home during your BK, there's another set of problems, but if you've never owned a home before then the above is pretty much the norm

Creditboards is a great resource.

No need to be embarrassed, many of us have had to do it.
UGGGH hit reply by accident.


ETA: I am over 2 years out right now and my FICO has jumped to over 680 from a 479 prefiling. I have reestablished credit carefully. I have 4 small credit cards plus my student loans. I have not applied for any new cards in over a year but I get preapproval notices pretty often.

Message edited 7/11/2012 1:34:26 PM.

Re: Need advice regarding the purchase of a home chapter 7

Thank-you so much for your quick reply!

I am currently living in and own a town home. I will be signing it over to the bank (deed in lieu/not foreclosure). Is that the same thing?

If I save a greater amount of cash (i.e. 20%, etc.) do I have to do an FHA loan?

Info regarding Deed in Lieu:
http://en.wikipedia.org/wiki/Deed_in_lieu_of_foreclosure

Message edited 7/11/2012 1:45:20 PM.

Need advice regarding the purchase of a home chapter 7

I really suggest going to Creditboards, the mortgage forum will probably have more info for you. I'm not too sure how deed in lieu works exactly as far as a new loan goes, but I know if you were doing a traditional foreclosure it would be at least 3 years from the foreclosure date for an FHA loan. I want to say conventional loans have different timelines

Re: Need advice regarding the purchase of a home chapter 7

thank-you so much for your help!

I'm hoping if i save 20% that it might take less time??

Re: Need advice regarding the purchase of a home chapter 7

I have a client 5 year post BK who had 20% down and most lenders didn't want to do a conventional for him- or any loan for him- I got him approved thru a smaller lender

FHA will most likely be your only option in 2 to 3 years regardless of down payment

Re: Need advice regarding the purchase of a home chapter 7

I have no advice on the buying part. we owned our home when we filed, but we didnt have enough equity established for it to be a problem or exceed the max allowed by law.

Just wanted to give you hugs as someone who has been through it. We got our discharge early this year and probably the best decision we made. We are on the road to recovery and so you will too.