Is it impossible to get a mortgage after a forceclosure?

View your credit file based on any of the UK credit reference agencies, or all three at once
LifeLock is the only Identity Theft Prevention Solution backed by a one-million dollar guarantee!Click here to get a 10% discount.

LifeLock Identity Theft Prevention - Save 10%

I am currently filing a chapter 13 bankruptcy, and I talked to 2 different lawyers who suggest that I let my mortgage go into foreclosure. I am not late on my mortgage payments, but I am upside down in my loan. My place is literally a money pit. I need to have this place rewired, my water heater just went out. My lawyer suggests that I surrender my home, and rent a place for a few years. he thinks that I should be able to get a mortgage in 3 to 5 years. What do you think?

Is it impossible to get a mortgage after a forceclosure?

He is correct. FHA is very forgiving. If your credit score is greater than 620 you can get a mortgage with Bank of America no matter what is in your credit history.

There is income or census tract limitations,

Is it impossible to get a mortgage after a forceclosure?

It may be true that in 3 to 5yrs you may be able to qualify for another loan but you will for sure be paying a higher rate on your loan. Foreclosures stay on your credit report for 10 to 12yrs if I am not mistaken.

Look into your other options like short sales, deed in lie of foreclosure. Although none of these solutions let you leave the table with your hands clean, either one of the solutions may be more beneficial to you than the other.

Is it impossible to get a mortgage after a forceclosure?

I am former underwriter for a national mortgage company and I have extensive experience in A-paper (for people with excellent credt) and subprime (for people with bad credit and hard-to-document income) lending for years.

FirstPrevious12 3 4 Next End

Is it impossible to get a mortgage after a forceclosure?

Topic