Doing the Right Thing
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Until you have the ability to pay off your debt or when you are out of the bankruptcy status. In any case, it doesn't hurt to see if you qualify for a home loan (I would stay away from companies that charges you a fee to get you preapproved).
Things that mortgage companies look at:
How much assets you have?
How much income you make?
How much debt do you have?
What is your debt to income ratio?
and many more factors. |
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Elle R
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The answer depends on who you are getting credit through. Your first step is to check your credit report. Find out what you're really working with. There may be things there that are adversely affecting your credit rating that are incorrect - start there and get those things corrected. Start at www.annualcreditreport.com.
As for bankruptcy, it is MUCH more difficult to file after the new law went into effect in October of 2005.
As for being able to buy a home, some creditors will work with you. For instance, a small home-town type bank might be willing to work with you if you get a smaller loan with them and pay it off in a timely manner. |
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Gel Candy
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DO NOT DO IT; BECAUSE I CAN SHOW YOU AND YOUR HUSBAND A WAY TO EARN ENOUGH MONEY TO BE ABLE TO BECOME FINANCIALLY STABLE, AND IN THE LONGRUN, EVEN OAY OFF YOUR HOUSE. If you're at all interested, email me at ashleymbi@yahoo.com |
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emmyboo88
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it would take a long time to buy a house...my mom declared bankruptcy five years ago and her credit score isn't high enough yet to buy one so yeah....it shouldn't be that bad since you have a husband and all |
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Frank Castle
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Someone steals an armored car and goes to prison and after 7 years (The time it would take you to get out of bankruptcy) he is released and he comes to your office (You have an Armored Car Company) looking for a job.
Would you hire him?
In case you have not figure it out already. The criminal is you and the Armored Car is the money you stole and the Armored Car Company is the Bank and the job is the house.
Top 3 Answerer in Business & Finance. (Vote for me) |
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milkdudette1
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I have been in your position. I declared bankruptcy in 2001 and just purchased a house last year. Since it was before the bankruptcy laws changed, most of my debt was eliminated. I then proceeded to amass more debt, had my credit cards cancelled (due to an accident - I couldn't work for 5 months), but which I paid off about 6 months prior to buying my house. My advice to you, if you do declare bankruptcy, try to keep at least three lines of credit open and in good standing. I had to pay a higher interest rate on my house because I didn't have any credit cards. You need to have three lines of credit in good standing for at least 2 years before you can get a good mortgage rate. You should also have a minimum 10 % down payment plus a couple thousand saved for the closing costs. I got a 2-28 mortgage, which means that it is fixed for 2 years and then APR for 28 years. In 2 years, I can refinance for a better rate because I will have established good lines of credit (as long as I keep paying my mortgage & new credit cards on time). Also, please note that every time a company checks your credit rating, it goes down. |
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csbean_2000
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you can buy anytime but your interest rates will be much higher. I went thru this and this is what I learned...If you dont address how you got to this point, a bankruptcy will happen again. Another thought is most of the time it helps to talk to creditors most will work with you. But there are other ways to reconcile finances other than bankruptcy...research and research again. I felt so degraded and ashamed. |
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Brenda P
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Yes, most states its 7 yrs., but it also depends if you gowith chapter 7, 11, or 13. Best to get a lawyer for this. |
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jannie
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mortgage lenders aren't too eager to lend money to people who declared bankruptcy
the question is if you can't pay your current bills , how are you going to make mortgage payments |
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Bullwinkle Moose
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You can always buy a house - it's the borrowing part you're going to have trouble with. You'll pay higher interest due to risk and you'll have to come up with a larger down payment to help guarantee the loan. |
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msverychocolate
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HERE IS WHAT I KNOW ABOUT DECLARING BANKRUPTCY IT WILL STAY ON YOUR CREDIT FOR SEVEN YEARS, AND YOU WILL NOT BE ABLE TO GET ANYTHING ON CREDIT UNLESS IT HAS AN INTEREST RATE AS HIGH AS THE SKY, AND YOU HAVE TO PAY ALL YOUR PURCHASES WITH CASH, IT REALLY SCARS YOUR CREDIT FOR A PERIOD OF TIME. I HOPE THIS HELPS!! |
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proud of it
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Let me know how you do because I am in the process of trying to clear all of my old bills because I want to live in a condo when I retire eventually. |
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burgers_r_yummy
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7 yrs before your credit can start to be good again. |
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littlebit
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7 years at least.
LC |
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jack russell girl
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I think it's 7 yrs. until it comes off your credit report |
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Sparkler
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most states, 7 years |
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Loo
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3 years you will pay a higher interest rate with most companies. If you wait just a little longer and dont have any more negative on your credit you can apply for an FHA loan and they are very lenient. |
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Jill B
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If you want a correct answer... ask a local bankruptcy attorney!
I would suggest you read the article "New Bankruptcy Law – Where’s The Consumer Protection?" you can view it at:
http://www.sandiegolawyerforyou.com/san-diego-bankruptcy-law-update.htm
http://www.las-vegas-nevada-lawyer-attorney-legal-injury-defense-directory.com/las-vegas-bankruptcy-lawyers.htm
http://www.san-francisco-oakland-bay-area-lawyers-attorneys-directory.com
http://www.san-jose-ca-lawyers-attorneys-directory.com
http://www.sacramento-ca-lawyers-attorneys-directory.com
http://www.la-orange-county-lawyers-attorney-directory.com
http://legal-advice-library.info/blog
http://www.austin-texas-lawyers-attorneys-directory.com/austin-legal-services.htm
http://www.san-antonio-texas-lawyers-attorneys-directory.com
http://www.san-diego-lawyer-attorney-personal-injury-dui-car-immigration.info |
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Andrew T
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If you have the money to pay outright, bankruptcy doesn't matter. However, since most people need to borrow $$, you will have to wait 7 years. I would really take the time and explore all of you options (i.e. debt consolidation) before going down that road. It can really make a mess of your financial life for a long time. |
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CuriousGeorge
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There is a little truth in all the answers above. In order to get a home mortgage you must be able to prove to the lender that you can make the monthly mortgage payment on time every time. It doesnt matter if you have a bankruptcy or not. The bankruptcy affects your credit rating and credit score (which are two different things) which in turn affects the percentage on your mortgage. If you claim bankruptcy it means you could not afford to pay your debts. Once you claim bankruptcy you no longer owe. You will have to close your credit accounts and start all over again. If you are approved for only a 100k mortgage while the home you want is 120k, you cannot buy the house. On the other hand if you get rid of 20 thousand in debt, then you can qualify for a bigger mortgage although at a higher interest rate. There is a science to bankruptcy. The amount of debts vs the amount of income. I dont know what the ratio is but if you dont earn enough to pay your debts (not bills) within a certain amount of time you are eligible to to claim bankruptcy. If you wait seven years after your bankruptcy claim then your credit score goes back up. Qualifying you for a lower interest rate.
..........
SO, LONG STORY SHORT....
Find out what your earning to debt ratio is. If you qualify for a bankruptcy, do it and then get the mortgage. Refinance your mortgage after 7 years. During the seven years begin to rebuild your credit. You need at least 3 open positive (No late payment ever!!!) trades for 5 years (try the secured credit card route and keep you balance very low. Try also a car loan) to get the best credit. The credit you havent used is a positive for you as the lender will count it as an asset. Any vehicle you may own also is considered an asset unless you're still paying for it. Dont change your job as "length of employment" plays a major role in interest rates. Dont get a divorce as this will affect your credit score (unless you divorce before your bankruptcy).
This is your best start. Good Luck |
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