We just filed bakruptcy, can we get a loan to buy a house?

The answer is no.

It will take either a bad hard-money loan with lots of cash down and horribly high interest rates or to wait three to five years based on the loan type you apply for.

I am just sorry that it sounds like you were not advised of that reality prior to filing.

Many people are opting for bankruptcy by default or upon bad recommendation by others because it appears to be a quick fix to a tough dilemma. However, bankruptcy is viewed by most financial advisers as a last resort when all else – credit counseling, budgeting and other efforts have failed.

Bankruptcy has far reaching consequences which make every day life very difficult for many years. Over the next few years you will find that it will impact your credit, finding employment, impact every day tasks like renting a car, and other necessities of life. Notwithstanding the fact that whether you are allowed a loan in a few years or not, your credit report will still wear the bankruptcy label for the next seven to 10 years depending on how you filed.

Why am I going on about this? Because you are now in a position to tell someone how to avoid what has happened to you. I am certain that if those who have had to file could do it again, with better counsel, they would not file or would not place themselves in a position to have to file.

Now that you have some time on your hands while you await the bankruptcy discharge, there are great free online tools to help you in beginning again and staying on track in preparation not only to purchase but to also establish spending disciplines that lead toward a healthier financial future.

I personally recommend sites such as http://www.mint.com and http://www.crown.org – wonderful and easy to understand tools that I use myself and have referred to family and friends.

Also, please don’t go the hard money route. There is no guarantee of what the market will do and you are in no position to take such a financial risk.

My best to you,

Keisha Mathews, REALTOR
Century 21 Landmark Network

What happens to my second lien if both my wife and i are on the second lien and she filed for chapter 7 bankruptcy?

Q: what happens to my second lien if both my wife and i are on the second lien and she filed for chapter 7 bankruptcy? will they go after me now? My wife was laid off last year and was living on unemployment for while. now there is no more unemployment money. the mortgage and second lien depended on both me and my wife to pay. now its all on me and we are in trouble. i have wife and child with another baby on the way due beginning next year in addition with another family member living with us. i am sole provider. The second lien was not part of a typical 80/20 loan instead we used second lien money towards house improvements since it was crappy house. we cannot afford attorney to give us any legal advice. we got loan modification for second lien and they are pressuring to sign that before we are even approve to loan modification on first lien. what if we decide to short-sale or foreclosure, will they go after me due to second lien? HUD counselors are useless and bank is all about taking all they can. thank you, Mike

A: Mike, your question is “what if we decide to short-sale or foreclosure, will they go after me due to second lien?” The answer is, it depends.

If you decide to short sale, the second lien will require some type of payment towards allowing the short sale. The second lien holder will decide what their terms are. Sometimes they want as little as 10% of the balance owed and sometimes as much as 3% of the purchase price. What you can also definitely count on is that they will continue to pursue you for the deficiency.

If you foreclose, the second lien goes away, however the senior does not.

Your initial question re bankruptcy sounds like she may not have filed yet, and that you are investigating your options. May I suggest Norm Schriever, a debt counselor, with Unity Financial Solutions. Tell him I referred you and he will give you a free one hour consultation.

He is also affiliated with the Law Office of Kristin Marshall who is a real estate attorney. Unity Financial specializes in Credit Card Settlement, Debt Management and Bankruptcy. Most recently they have been assisting homeowners who have concerns with their mortgages and need options on what to do. The company will review your loan documents free of charge and advise you free of charge. Their goal is to help individuals in the long run to clear up their debt and begin again as quickly as possible.

They work in conjunction with the law office should the need arise for bankruptcy or court matters. They are also members of the BBB and have been featured on msNBC, CNNMoney.com, New 10, SacBee and are on Facebook.

Norms contact info is below:

Unity Financial Solutions
Norm Schriever
(916) 548-6350
norm@unityfs.com

Let me know how it goes.

I rented a home in July of this year and learned recently that is in foreclosure.

Just answered this question on Trulia:

Q.:I rented a home in July of this year and learned recently that is in foreclosure. The owner wants me to assume the loan and pay him off $20,000.

Is this a difficult process? The home is perfect for me, but I filed chapter 7 this year and don’t think I will qualify for much of anything at this point. Can you give me feedback on this?

A.:

1. Assumable loans are rare these days, so verify that the loan is indeed assumable.
2. With your recent BK filing, you more than likely will not qualify for a loan for another few years, possibly 3 to 5 years. Meet with a reputable lender to see when you will qualify again. Since you are in Rio Linda, I recommend Eddie Fairchild of Summit Funding at (916) 504-9636.
3. Do not sign any paperwork without professional representation from a REALTOR and reputable ttle company.
4. DO NOT give up any money with the intention of potentially owning the home.
5. Divorce the property. Be prepared to leave the property. From a professional vantagepoint, and based upon the information you have provided, the circumstance is not leaning in your favor.

With the holidays upon us, you may want to think about being settled and look ahead. Start looking for another property to rent, and cut your loses now rather than allow any more time to go buy and watch your hard earned money go down the drain on a property that has no interest in you. Sorry to deliver the message so hard, but I’m just the messenger, by profession I might add! 🙂

My best to you!

I rented a home in July of this year and learned recently that is in foreclosure.

Just answered this question on Trulia:

Q.:I rented a home in July of this year and learned recently that is in foreclosure. The owner wants me to assume the loan and pay him off $20,000.

Is this a difficult process? The home is perfect for me, but I filed chapter 7 this year and don’t think I will qualify for much of anything at this point. Can you give me feedback on this?

A.:

1. Assumable loans are rare these days, so verify that the loan is indeed assumable.
2. With your recent BK filing, you more than likely will not qualify for a loan for another few years, possibly 3 to 5 years. Meet with a reputable lender to see when you will qualify again. Since you are in Rio Linda, I recommend Eddie Fairchild of Summit Funding at (916) 504-9636.
3. Do not sign any paperwork without professional representation from a REALTOR and reputable ttle company.
4. DO NOT give up any money with the intention of potentially owning the home.
5. Divorce the property. Be prepared to leave the property. From a professional vantagepoint, and based upon the information you have provided, the circumstance is not leaning in your favor.

With the holidays upon us, you may want to think about being settled and look ahead. Start looking for another property to rent, and cut your loses now rather than allow any more time to go buy and watch your hard earned money go down the drain on a property that has no interest in you. Sorry to deliver the message so hard, but I’m just the messenger, by profession I might add! 🙂

My best to you!