Mortgage
Anybody have any experience getting a mortgage after a bankruptcy? Mine was discharged in July. I have savings of $5500, established credit with two card companies (payments always on time), and paid my existing owner financed mortgage on time. Now it is time to refinance. I owe approximately 66k on a house valued at 100k. Any opinions/insight about what I will run into?
Answer:
I think the most important factor is that your LTV (Loan to Value) is only 66% Thats great and will be your biggest asset in getting a new mortgage. The reason is because its a great risk for them, as you only owe 66% of the value of your home. Based on the limited info you have given, I dont think you will have one problem getting a mortgage. You might run into a problem with them on whether or not they will look at your seller finance payments as "on time mortgage payments" Many companies will not recognise them unless its all been done through a 3rd party escrow company who can verify everything. They might even go back and check some of your checks to see when they were cashed. I had one guy who wanted to do this exact thing, but the "owner" would hold his checks and cash them later in the month. The Mortgage Co. said that they felt the landlord was holding the checks for the buyer until it would clear, so that it would look like he made it on time but really paid late. As far as the time elapsed yes there are plenty of lenders that will give you a mortgage with at least 2 years after discharge under your belt.
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