Is having a BK really as bad as people think? I know of a couple of people who have had recent (less than 2 years) BKs and they have FICO's in or near 700's already, have been able to buy cars with no problem and are getting CCs without problems. I know it is the option of last resort, but is it really the Credit killer that some people say it is? What I would really like to know is if it is significantly harder to get a first mortgage with a recent BK? Perhaps Loan Queen woud be abe to answer this? Hint , hint! 3 day
No....lenders will do a new mortgage 1 day out of BK with no new lines of credit. Granted rates are not as good, but it is available. Use to be that you were "screwed" for 2 years getting a mortgage...no more. There is what they call a "bandaid loan" for 2 years...get your stuff together and 2 years later refi. It's no longer a death wish. I agree that it should be the last resort...but, sometimes it's the only way to get out of the hole...and isn't that what it's for? Hey, my ex did it (screwed my credit up though) and he had a new mercedes within a year. Geez...now that just seems WRONG!!! I didn't and I'm still cleaning up the mess. AHHHH!!!! P.S. STAY CURRENT ON EVERYTHING AFTER A BK...THAT'S A REAL KILLER!! They have given you a second chance...DON'T ABUSE IT!
80% to 95%...5.70%-7.25% depending on score, and loan to value. Rate can go lower with more than a 620 score. These are a 2 year fixed. Hope that helps. PS...Remember, this is a quote and not all states would qualify for this particular product.
One thing to consider about all of the people with 700+ FICO's that are only 2 years out of bk--they probably had a long good credit history pre-bk. Your good TL's don't disappear when you file, you just inherit a ton of negative info. If you have enough good info, it somewhat weakens the bad info. Some of those high FICO's also kept TL's current through the bk. We did that. We had 2 clean auto loans, a mortgage, and a 15 year + AMEX account through the entire CH13. If I could give you one piece of advice it would be PREPARE. Know going into a bk that life is going to be harder afterward for at least a couple of years. If you need a new car, get it before you file (unless your scores are already tanked pre-bk with CO's etc). If you need to refinance your mortgage, do it before you file. Basically, set yourself up to need as little credit as possible for the next 2-3 years. After that time, your credit will probably have healed enough to get fair rates. Don't put yourself into a position to have to find a car loan 1 month out of bk. You will get screwed.
Thanks Guys. Loan Queen, is there a program in California for a fresh out of BK mortgage? What are the rates and down payment requirements?
Yep...the rates I quoted above are for CA. Give me details..loan amount, value, score...yadda, yadda. I'd be happy to help. You can email me directly @ loanqueen2003@yahoo.com if you'd like. Take care!
Do you know if those rates would fly in Florida? I called Ameriquest about doing a mortgage being 2 months post BK 7 discharge. They said they would do it, but........... The rate was going to be 9% at the lowest, and the closing costs would be around $8000 for a $125,000 loan. That is with 25% down. No thank you.
yes, you can get a mortgage after bankruptcy (sometimes even during). if you can wait two years and clean up your credit it will far worth it. i waited five years, my banko doesn't even show and I got 100% w/5.25% fixed rate for 30 years. if the average consumer had the 20% to put down that is required on some after banko mortgages, the people wouldn't have had to file banko in the first place!
Yes JB...there are better rates out there, a lot depends on your score. I believe (not at the office right now) the lender I quoted does do loans in FL. Fees should be around 6K (tax deductable). What's your score, loan amount and value and I'll get ya a quote tomorrow.
Loan Queen, My EQ score, as of 3 days ago, is 615. Not sure about the others, they are roughly the same. Much inproved since a few months ago when I made my profile(see in my sig.) Looking at $120,000 loan on a $140K townhouse. Any info you can provide is appreciated.
not all fees are tax deductible. typically only points my recommendation to anyone on any message board is while message boards are a good starting point, you need to talk with your "people" to make sure it works for you. "people" meaning your bank, CPA, attorney or anyone else within your network who you trust to give sound advice.
K heres the goods on a post BK loan 540-559 credit score = max 85%ltv and a rate of 6.750 to 6.875 560-599 credit score = max LTV of 90% and rates of 6.125-6.875 600-639 credit score = max LTV of 100% and rates from 7.00(100%) to 7.25% 640-700 credit score = 100 LTV and rates from 5.875 to 6.25. for a .25% add to the RATE you can get Interest Only Payments on these loans and you can get these rates and LTV's one day put of BK. These rates were based off of Full Documentation of income and are based on 2/28 arm products. Hope that clears it up a little more.
Again Will, details. Given a particular scenario I would be happy to quote. There are also other factors to consider...as we both know! Loan amount, are there open lines, age of bk, mortgage or rental lates....yadda, yadda. I think the question directed at me was does a BK mean a 9% interest rate. I was assuring them that it didn't. You don't always have to try to one up me on this board!!! I'm here to help, not to get biz...like some people! Points are tax deductible as well as prepays (in CA). Creditneters...I know you are just trying to keep yourself from an embarrassing situation by applying for a loan and getting denied. NO FUN!!! I know I was...and that's how I got into this business. My advice is free and if given a situation I'll answer it. I'll try to keep it simple.
Awe Loan Queen don't get flustered. I like to give the information in great detail so people don't feel like they have to call me up, fill out an application, and THEN get the answer.... that's all. Too many mortgage professionals will give visitors to a forum a little scrap of meat for an answer.....just enough to peek their interest and get people to call or email them. I am NOT saying that YOU would be doing this to improve your business but I try to post as much detail on a subject as possible so that a borrower can print it out, go to their bank or mortgage guy, and say "this crazy guy on the net said I could do this, why can;t you do this". I know you are kind of new to the industry so don't think that I am bustin' yer chops. For some people, they come to this forum ONCE.....and they never come back for some reason or another. I want them to get the details because sometimes people are detail orientated. Don't EVER think that any of my comments are directed at you. I want people to get the answers thats all. As for this program I am talking about, there is NO BK seasoning, No reserve requirements, no tradeline requirements, and no seasoning of down payment requirements. That pretty much covers 95% of the people out there and is why I posted this program. I am not sure if you have ever checked into who I am and what I am about, but if ya did, you wouldn't feel as though I was coming down on you or trying to take business away from you. Many loan officers think I am cocky, arrogant, and generally a pain in the butt.......and my passion for the industry is annoying. (guilty on all counts) With me though you DO have to know one thing.....if ya post something about mortgages you'd better have yer information right or I am gonna come behind and straighten ya out. I find the fact that you have gone through credit repair as a powerful tool in your business. I have a few former clients of mine that I am working with in helping them become Loan Officers and I think it is a fantastic idea. I think the only thing that people that want to be in the industry should have as a MUST is a personality.....and to not take things so darn seriously as we ARE just one step above (or below in some cases) a car salesmen. Always remember that in mortgage, it is the DETAILS...and ONLY the details that will decide if your clients loan will be a roller coaster of a nightmare or a pleasant voyage. Often these omitted details, even small, are what cause the downfall of many loan officers. If anyone made it down to this line in my sermon you should be applauded as I am sure it is even too long for me to re read and see if it makes any sense.
will - your breakdown on rates is right on. are you a broker or a lender? i know loan queen is a broker. i am a lender. just wondering.
