5 Year Old Bankruptcy... - Posted by Tom (NC)


#1

Posted by lezlieTN on October 12, 1998 at 20:27:40:

Just hang in there. try to find some mortgage brokers in your area. they will usually lend to anyone, even if they just came out of bankruptcy recently. you will have to pay a higher interest rate however. also, try l/o, that will give you time to work on your credit and locate some mortgage brokers. good luck


#2

5 Year Old Bankruptcy… - Posted by Tom (NC)

Posted by Tom (NC) on October 08, 1998 at 22:54:15:

Ok…Got one for you…I declared bankruptcy while in college (stupid credit cards) That was in January of 1993. I have some good credit, but mostly still bad (student loans). My wife has almost excellent credit (we recently leased two brand new cars…were needed badly). We are renters currently and really want to buy a new home real soon.
We have a little saved but not nearly enough for a downpayment for ourselves or for investing. According to Mr. Sheets and others, we can still do investing. I am considering buying the Sheets course and I wonder if we will be able to do REI with our credit (I.E. damaged and little)


#3

Re: bankruptcy and financing (NEW!) - Posted by Tom (NC)

Posted by Tom (NC) on October 09, 1998 at 22:06:52:

Something else I should mention:

I work in the film business as Set Productio Assistant. Since I do not live in LA, I do not work every day like people with “Real” jobs. However, the money I make when I work is pretty good (i.e. I make in a week what most normal jobs make after about 3 weeks. When I say we don’t have enough for a downpayment, I mean the standard 7-20% that someone in our situation would need.

QUESTION for all of you FHA pros:

Could we obtain a home loan on my wife’s credit alone? Do we need to include me on the application for credit? Is there some way to include my income without my credit?


#4

Re: 5 Year Old Bankruptcy…(long, sorry) - Posted by Tom (NC)

Posted by Tom (NC) on October 09, 1998 at 21:53:03:

I appreciate everyone who responded. However I have to take offense at some of the comments. I don’t have my priorities straight? Why do you say this? Because we leased 2 new cars? The cars that we had before the new ones were falling apart and over financed. The leases gave us new, more reliable cars at lower prices (also got lower insurance, too).

What was the question about my maturity level? Why would you even bring that up? I simply asked a question about something that is a serious concern of mine. According to every SINGLE self-proclaimed guru, I should have no problem in REI. I was merely asking the people who appear to do this for a living if that was true. That doesn’t seem immature to me. Actually, taking the time to research this type of investing and asking straight forward questions is VERY mature.

As to the suggestions made: I have been paying on my student loans and they are all almost current. Only one is with a collection agency, but it is held by a college education funding company’s collections department, not _____________ (isert your favorite company name here) Collections. I have tried a few times to get them to update the listing, but student loans are a beast of a different matter. Like you said…old bankruptcy, ok. STUDENT LOANS…they run screaming the other way.

I should note that during the 5 years I have had my bankruptcy on my record, I have financed a used car, gotten an apt, had utilities in my name (no parental or spousal help, no deposits needed when we moved to NC), obtained a normal credit card that has a lower interest rate than the one my wife and I got when we moved to NC. Also, according to the latest credit reports that I have gotten on for both my wife and I, they are totaly seperate. We have only gotten one credit card together. Nothing else has been done jointly (the apt we live in is in my name).

So, thank you for all responses. Any ligitimate help and advice accepted. Criticism will be dealt with harshly… by turning the other cheek!

PS I am not in REI, yet. Just investigating it. Maybe use some of the techniques to buy a house for ourselves, is that possible?


#5

Assuming you follow the wise advice posted… - Posted by Carol

Posted by Carol on October 09, 1998 at 15:28:23:

then use your wife’s credit when you need to put the best face forward.
If I understood your message, hers is OK. Same thing here - the banks love
me 'cause I am W-2’d and have great credit. So when we need to go that route,
we put the financing in my name only.


#6

Re: 5 Year Old Bankruptcy… - Posted by Karen McCall

Posted by Karen McCall on October 09, 1998 at 12:02:29:

The Banruptcy is not stopping you from getting a mortgage FHA VA Or Conventional can usually happen after two years as long as you have some good credit, but STUDENT LOANS WILL KILL YOU!!! go to the original loan holders (they’ve undoubtably sold them off by now) and negotiate a payment plan in writing that states when you have made 6-12 payments on time they will update your credit file to read “paying as agreed”, once you have gotten this in writing contatc the collection agencies handling this and give them a copy of the agreement or they will keep hounding you, then send the agreement to each credit bureau there are 3 major ones, and ask that they remove the collection agencies entered on your file (they’ll take about 3 letters from you to do this) once they do this then you’ll look a lot better to mortgage companies. While this is happening I suggest that you get on a written budget living within 70% of your net income and stay there… that will help you get where you want to be, and MAKE THE PAYMENTS ON TIME!!! If you still can’t stand to wait to invest then you are going to have to work twice as hard to make investments. I recommend that instead of Sheets pricey course you buy 3 books: Rich Dad Poor Dad; Creating Wealth by Robert Allen; The Richest Man in Babalyon (sp). These will teach you the same things and save you $$$$.


#7

BK is not Armeggeddon (sp?) - Posted by raelynn mitchell

Posted by raelynn mitchell on October 09, 1998 at 24:18:20:

so don’t give up.

Pull credit reports (separately) from each of the 3 big bureaus and do not reveal spouses when you do. No need to give them any more information than they already have. You can do it by mail:

Experian
P.O. Box 2106
Allen, TX 75013-2106

Trans Union Consumer Relations
760 Sproul Rd.
PO Box 390
Springfield, PA 19064-0390

Equifax Credit Information Services
1150 Lake Hearn
Atlanta, GA 30342

See what info they have on you. May not be as bad as you think. But if it is, you can search 4 inaccuracies. If there are any, dispute them a few at a time, requesting a new report be sent when they finish their investigation.

Also, buy a copy of THE MILLIONAIRE NEXT DOOR…it will truly open your eyes about buying big ticket items. And get RICH DAD, POOR DAD.

But DON’T GIVE UP.

raelynn


#8

Re: 5 Year Old Bankruptcy… - Posted by George

Posted by George on October 08, 1998 at 23:47:36:

Doesn’t sound to me you have your priorities strait
Give us a buzz later

"(we recently leased two brand new cars…were needed badly). We are renters currently and
really want to buy a new home real soon.
We have a little saved but not nearly enough for a downpayment "


#9

Re: 5 Year Old Bankruptcy… - Posted by Marvin Seawood

Posted by Marvin Seawood on October 08, 1998 at 23:42:36:

Hi Tom,

Yes, however you’ll need to work on your maturity
(the bigger problem) as well as your credit rating.

Marvin


#10

Re: bankruptcy and financing (NEW!) - Posted by Carol

Posted by Carol on October 10, 1998 at 08:15:07:

Don’t think you can have it both ways.
As I mentioned below, our conventional loans are
based on my income and credit. If you count your
income and assets, you have to count your liabilities.
However, if your wife has sufficient income, good credit
and few debts in her name, try that route.


#11

Re: 5 Year Old Bankruptcy…(long, sorry) - Posted by Ronnie

Posted by Ronnie on October 14, 1998 at 12:14:00:

I agree that the ‘bashing’ was TOTALLY uncalled for. The questions asked were legitimate as are many of the questions on this board. I am sometimes amazed at how strangers can be so callous and rude and accusatory, especially considering that responses are read by MANY individuals, not just the intended recipient. I can perfectly understand criticising illegal manuevers. I strongly resent attempts to bad-mouth individuals who GENUINELY want to succeed in real estate and have legitimate fears. Let’s face it folks, real estate can make you rich. But if you do it the wrong way, it can easily make you bankrupt.


#12

Re: 5 Year Old Bankruptcy…(long, sorry) - Posted by lezlieTN

Posted by lezlieTN on October 12, 1998 at 20:28:09:

Just hang in there. try to find some mortgage brokers in your area. they will usually lend to anyone, even if they just came out of bankruptcy recently. you will have to pay a higher interest rate however. also, try l/o, that will give you time to work on your credit and locate some mortgage brokers. good luck