Ok, I have a unique situation. My wife filed for ch13 a little over 1 year ago, but I did not. I am now interested in buying a new house. The reason for buying a new house is to take some of the equity to pay off her ch13. I would get the new house in my name only since I am not in ch13. The problem lies in my mortgage payment history. I have had all mortgages deleted from all but EXP. They are reporting my second mortgage as 60 days late. Of course that was the status at the time of the bankruptcy and we have paid it on time for over a year. Is it possible to get a mortgage with a 60-day late mortgage showing? I have scores of EQ - 676, EXP - 580 (because of the current 60-day late tradeline), TU - 650. Even if I do get the tradeline updated or removed from EXP, how will it look that I currently have a mortgage payment that is not being reported to any CRA? Will the new mortgage company require documentation on my payment history from the previous mortgage company? I would be looking for a house in the $220K range with about $25K down.
wouldn't it just be easier to take a home equity loan to pay off her ch13? why didn't you do that before she filed? i don't see why you need to buy a new house to pay off her debts...
If you have enough equity not hard....they do require alot of info though.....W2, paystubs, even a letter from your employer stating that they anticipate for you to be a long term employee...I think that was a better suggestion than a new home....you may just have to deal with a high interest rate....which you can work on later
it isn't that hard at all depending on your score. i do HE loans and if the late was within 1 year you have to provide a letter of explanation. here is what i require on my loans: current paystub (if not self employe) homeowners insurance declaration page appraisal (we can use yours if less than two years old) i order a title report and flood report. the only fee you pay is if you need an appraisal (about $250). easy to do - takes about a week from application to funds being available (due to three day right to cancel). you can typically go 100% loan to value if your score is over 680.
i should add that with your scores you could probably get 95% loan to value with a rate of about 2-3% over prime (which is currently 4.25% - so your rate would be about 6.25%-7.25%) on a HE Line of Credit. or about 8 - 10% on a HE Term loan. don't quote me on that though. good luck!
