Can lenders penalize old bankruptcy history? - Posted by Jons

Posted by Jim V on September 22, 2004 at 23:25:13:

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Can lenders penalize old bankruptcy history? - Posted by Jons

Posted by Jons on September 21, 2004 at 03:00:23:

Someone I know has a FICO of 720 but he had filed BK about 7 years ago.

Can lenders penalize bankruptcy history
even if it took place 7 years ago?

I am asking because lenders always ask “have you ever filed bankruptcy”. are people required to answer this truthfully even if 7 years period has passed?

At one point will the BK not matter any longer?

Re: Can lenders penalize old bankruptcy history? - Posted by Jim

Posted by Jim on September 22, 2004 at 22:01:13:

Todays lenders have become a little more acceptable of past bankruptcy. I have even seen deals in the sub prime areas where the buyer was 1 year out of bankruptcy and the deal went through. Higher interest of course, but buy at the right price and who cares, just GET the property. If you want more info send me email.
Jim

Re: Can lenders penalize old bankruptcy history? - Posted by michael schindler

Posted by michael schindler on September 22, 2004 at 11:12:19:

Also, don’t be afraid to look at the sub prime lenders because, rates right now are pretty great for all lenders. With a b/k that old and scores that high, you should be able to go some form of conventional-this is based on little knowledge of your situation of course. what are you trying to accomplish?

Re: Can lenders penalize old bankruptcy history? - Posted by michael schindler

Posted by michael schindler on September 22, 2004 at 11:10:26:

B/K can stay on the bureau for 10 years. There are some programs that don’t allow any previous b/k’s. It depends on the program you are trying to use. I beleive over 10 years-or, when it falls off of your bureau, then you soud be fine. Most programs want at least 3 years removed from the discharge. You can also look at other lenders and other programs if the one you are trying to use doesn’t allow a b/k-even 7 years ago. B/K guidelines are pretty much etched in stone with many programs-the more “sub prime” you are trying to go, the more it becomes a factor. Lots of “conventional” programs are computer scored so if the computer says YES, then it’s a non issue but, again, subprime lenders have a different set of guildelines. Have a broker shop for a program that will fit your needs-it shouldn’t be hard to find one for you.

Re: Can lenders penalize old bankruptcy history? - Posted by Dee

Posted by Dee on September 21, 2004 at 18:06:09:

I just ran credit on someone that told me she had an old BK. If they answer no and have had it will still show. This person had a BK in 1995 and it’s still showing up on the credit report.
Most lenders will look at the rest of the credit, whether they have new bad credit.
If they see an OLD BK and nothing since but good. The people should probably be able to get a loan without a lot of problems.
Check with lenders and ask.

Re: Can lenders penalize old bankruptcy history? - Posted by wes

Posted by wes on September 21, 2004 at 07:48:35:

The question on a 1003 application asks if you have been declared bankrupt in the “past” 7 years.

If your answer is “yes”, then yes it can effect your rate and terms. If it has been over 7 years, then you can truthfully answer the question NO. At which point it shouldn’t be a factor.

There are some loan programs that do not allow you to ever have filed bankruptcy. But, If you have re-established good credit and can qualify. The old bankruptcy should not be an issue.

Re: Can lenders penalize old bankruptcy history? - Posted by Darryl Sandoval

Posted by Darryl Sandoval on September 21, 2004 at 03:30:40:

Lenders can charge a higher rate if you have issues with your credit.

Sub Prime lenders work with scores as low as 500 & charge a rate of up to 11%.

DS

BK shows on credit for 10 yrs… (nt) - Posted by JT-IN

Posted by JT-IN on September 21, 2004 at 21:19:36:

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