ErikOk 10 Report post Posted April 13, 2013 I got a buyer worksheet tonight from the lady that takes some of my calls. Tenant-Buyer is going through a divorce & is getting ready to file bankruptcy (not sure if it will be Chapter 7 or 13). Her current credit score is 690. She stated that husband has a lot of medical bills. I am not sure of her income right now. The CA I have is $1200/month with a 2 year lease term. If she has enough income to support the rent, what do you all think about the pending bankruptcy? I have read that with Chapter 7, The FHA will insure mortgages two years after your Chapter 7 discharge date, but you must establish a credit history in those two years and it cannot contain any late payments, collections judgments or other blemishes. With Chapter 13, because you still have a record of responsibilities for your debts after bankruptcy, the FHA only requires a 12-month wait from date you began making your payments. So I am thinking that if it is Chapter 13, then this lease might work for her. If Chapter 7, probably not. What experiences have you all had with this and how would you approach it? Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 13, 2013 You need a more complete picture of this applicant's bankruptcy plans, (7 or 13), and then have her talk to a mortgage person. Takes all the guess work out of the equation. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted April 13, 2013 If someone comes to me and is about to file BK, I tell them I can't help them...I mean...REALLY?!?!?!"I'm about to file bankruptcy, but..I kinda want to buy a house as well.."CH7 requires 3 years, although you'll read and hear 2 years...I've never ever ever ever seen it happen. CH 13 requires 1 year on time payments to the trustee and permission from the court to acquire debt. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 13, 2013 C'mon, Jackson, join the new millennium! Bankruptcies and foreclosures are now considered a rite of passage, a badge of honor. With the current administration's mindset, everyone is entitled to homeownership. Don't be such a stick-in-the-mud.Barney Frank for ever! Share this post Link to post Share on other sites
pilot76180 51 Report post Posted April 18, 2013 Barney and Chris Dodd.....what could possibly go wrong? Share this post Link to post Share on other sites