ARRRRRRRGH Bankruptcy sucks!

[EweSheep]

Didn't get the preapproval loan. They said I had bankruptcy on my record and I have to wait one more year before they can re consider me again. At least my credit score is improving! ONE MORE YEAR! I loved this house and now I have to kiss it good bye! Only other option is to rent it but not sure if owner would rent it out. The house has been on the market since 11/28/09. Hubby does not make enough money to their satisfaction.

Anyone had problems buying houses with their bankruptcy years ago in this housing market? I know the statue of limitation in IL is five years but loans can not be done until the seventh year. So would renting would improve my credit score even more?

 

[Hillsvale]

What about drawing up a rent to own deal with the owner... generally some of your rent would go towards the down payment... the only issue is that generally what happens is the house goes up in value and you would generally have to pay market value when you went to close the deal... of course if the market is failing where you are that might work in your favour.

 

[key west chick]

I feel for you. We filed bankruptcy either 4 or 5 years ago this past November. It really has been a pain in the butt. No advice really, just have to wait it out.

 

[spammy]

I have purchased lived in and sold 2 houses bought on land contract. If you find something you like have a professional inspection done before working out a final deal. I made money on both.

 

[Cindiloohoo]

Sorry you can't get it!! That's awful! Must have not been meant to be..

 

[Guinea Goonie]

It is my understanding that the reason one can not get a loan for 7 years is that the Bankruptcy courts (which are federal in nature) have 6 years to collect in favor of your creditors. Now I really do not know a lot about what this entails, but dang this seems like a long time.

I am sure you had your reasons, but it sounds like a real life changing ordeal. I am sure there is a universal reason that you did not get your house. If it was me, I would not buy in this market anyway. Real estate is no longer the untouchable investment, you can lose you butt, become upside down on a loan and be stuck there for a very long time or worst have to short sale or even consider foreclosure.

Ya, Ya doomsday, Guinea Goonie. We are not out of this economic mess yet and ya never know what it next. Tying up your egg basket means you could miss a lot of eggs getting laid (my grandma used to tell us this and until now I really never understood it.)

 

[EweSheep]

I know, I know! Bankruptcy sucks LOL! Me and thousands of people. I certainly do not want to lose my butt either but either way, we would be stuck in doing so but rentals looks so much nicer because of less hassle and worry about being stuck with a house you can not pay. We own a house we are living in (IN the city) but the taxes and sending my DD to private school wanted me to go outside of town for less taxes, better schools and better for chickens LOL!

If the market is still iffy, better bet is to wait awhile and see if I can reapply for a home loan approval only next year which it will be in my seventh year. I guess another year can wait and save a bit of money for down pay.

Rentals on farm houses are like needle in a haystack.

Robin

 

[Mahonri]

I don't care what the gov'ment says about the GDP, it's all huey.

We are still in a deepening recession and real estate will continue to decline, especially if the health care fiasco passes.

You are probably better off waiting another year.

 

[EweSheep]

And all the good stuff like house purchase tax credits but it will expire April of this year LOL! Makes me wanna yell out to the government and say you guys are a load of horse manure! "Jobs are increasing and housing market is really good and the banks are lowering their rates in historical amounts.....yeah right, where ARE those sources?????????

 

[Guinea Goonie]

When we came to MO two years ago, we decided NOT to buy. We had watched the FL, TX, NV, OH and CA housing bust and this really set us on our ear.

We have a real estate friend here that thought we were Dooms Day Fools. Well, now after two years the market here is going South, real estate agents are giving it up and people are looking at us like a dog that just heard a strange sound. They are now in agreement that buying now would be financial suicide unless of course you decide to live in FL, TX, OH NV or CA !!

The taxes are ALWAYS going to be a problem because this is how a city, county or state gets money to run it's respective governments and as you know they are NOT going to tighten their belts any time soon unless they are FORCED to do so.

In FL and those other states the appraisers have been told to appraise property at 100 percent of value !! This is unprecedented and is causing quite a stir with the people.

Couple this along with an upside down mortgage, a failing economy, a job search that may take well over a year and the price of anything you buy and one gets just a bit concerned. With NO end in sight for any of these states one wonders if it could happen to them as well.

If you can sell you home and even sorta break even I WOULD GET RID OF IT because taxes are going to hit you as hard as allowable and your price of your home may PLUMMET. The price in FL, for example has gone done 18 percent in the last year and the year previous 20 percent , the year before close to 25 percent !! People are STEALING property down there and the prices are STILL going DOWN. Some properties are down as much as 50 percent OR MORE. No one can afford to loose this kind of money, NO ONE. If you study the real estate market in the great depression; there was NO boom in pricing and the percentage was not even CLOSE to what is being lost today. We are talking over a TRILLION dollars lost by folks just like you and me. Many analyst have disclosed there will be NO 'V shaped" recovery in real estate. They state we will be lucky if it flat lines and the bleeding stops in 2010.

NEVER in the history of this country, including the Great Depression have real estate markets been destroyed as they have been in the last 3 years. The prices may have accelerated up, but they are accelerating even MORE going down !!

Foreclosure after Foreclosure is happening 'cause people just can not afford the blood letting of this market. This in turn brings the pricing of real estate to NEW and unbelievable LOWS. I have even heard of people sending in their keys to their loan institutes and letting the chips fall were they will to avoid law suites and bankruptcy.

The faster you put your denial away the quicker you will recover. The other thing that is worry some it the rental prices. One would think rent would go UP in such a crises, More people, less property, but JUST THE OPPOSITE is happening. Land lords are being FORCED to lower their rent because people just can not afford it otherwise.

The very sad thing about all this is our government has determined to let the pricing of personal and commercial real estate fall to whatever that local market will take it. They had/have decided to let "free trade" determine pricing. We are on our own.

I would rent and hold on, this could get a LOT worse. What really stinks it there is no real way around this. Even as we wait for real estate to "converge", our money is losing value for any future endeavors. We are in a WORLD of hurt, this country may never see our wealth destroyed as is in process RIGHT now.