How can I buy a house a couple years after bankruptcy? More options

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Q. We are renting from a friendly owner who is really happy with us. She may offer to sell us the house. Can't afford it right now but maybe after intensive saving for two years, which may be do-able. What possibilitites are there if I go through bankruptcy this year? If I don't do bankruptcy, I may not be able to save any kind of down-payment. As it stands right now, this is the perfect house for us. It is a unique house in a little-known area that is a little under-valued. The current rent, but the way, is a really good deal, as far as renting goes.

A. My lawyer told me that if was quite possible to get a mortgage after 2 years following bankruptcy, and nearly everything I have read confirms this. According to my attorney, if you wish to re-establish credit after bankruptcy, you need to do the following: - Establish a checking account (if you do not already have one). - Establish a savings account (if you do not already have one). - Establish a pattern of savings. - Get a secured credit credit card (this will also establish a savings account). - Charge some necessities every month (food, gasoline, etc... - Things you would NORMALLY buy). - Pay off the credit balance every month. - Pay the rest of your bills on time. No one can guarantee that you will get a mortgage in two years, because the economy is in a constant state of flux, and who knows what it will be like in two years. Your ability to get a mortgage also depends on things like your income and expenses, and these sorts of things can change as well. That being said, however, if your goal is to be able to re-establish credit to the point of possibly being able to buy a home, following these steps will place you in a much better position. If she us that friendly, she may agree to finance your purchase directly. It that is not feasible, agencies like Fannie Mae finance home purchases after banruptcy is you keep your nose clean for a couple of years. If you can save for a down payment without filing bankruptcy, why file? The bankruptcy filing may stay on your credit file for up to 10 years. Consider the following points: 1. Filing chapter 13 will require payments to a trustee for up to 5 years and may only reduce any unsecured debt (such as credit cards) 2. Chapter 7 may require giving up some assets that you are unable or unwilling to pay for 3. The interest rate that you pay on a loan may be significantly higher after filing. If you are having problems meeting your financial obligations, talk to a financial counselor (as in consumer credit counseling). Take a second job. Restructure your debt. Only buy what you can afford. You can avoid filing bankruptcy and still get the house! Get creative. If you are delinquent your obligations, contact your creditors. Let them know your situation. You may be able to settle for a lower amount or temporarily reduce your payments. That was a problem I was worried about when I filed. I was forced to do a Chap 7 and was able to keep ALL my assets. My boat, motorcycle and 2 cars. I went through a well known attorney here without any issues. Also in 2 years I was able to purchase my new home. I had to go FHA and needed 3% down but that's it. I was locked in at 7.00% for 30yrs. Other people I know with good credit were at 6.75% 30yrs. So I guess what I am saying here is.. 1. Do you really need to file? Think about it first. 2. Get a good attorney in your area if you do file. Really makes no since to do anything but Chap 7. ( That's just my opinion ) 3. Don't expect to lose anything but be prepared if you do so it is not a surprise. It was VERY easy for me to get a mortgage after 2 years. I called several mortgage brokers and they set me up with several banks. Either way think hard on this issue.

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