Foreclosure and a chapter 7?

Question:

I lost my home a few months ago in foreclosure. We tried selling with a short sale but had no luck. We made a few bad choices. We went ahead and filed Bankruptcy to get a fresh start and start everything over.

I would like to buy another house next year if possible with no money down (100% financing) With all the foreclosures that are occuring now it seems like restarting should not be that difficult due to the economy. I understand the interest rate will be high but I am not concerned about that because credit can be rebuilt in the process and refinancing is always there. Has anyone else been in this boat that can offer some advice?

P.S.
Ch.7 was discharged 4/30/07 and foreclosure was in march I think. I hope its possible to buy by next summer beginning of fall.

Thanks for taking the time to read and answer.

Answer:
You will not be eligible for anything other than alternative financing (high rate) until 5/09. At that point, if you have establised and maintained good credit, you will be eligible for FHA financing with a minimum FHA down payment (approximately 3%).

With a foreclosure and bankruptcy in your credit history you are considered an extremely high risk. Add to that the implosion of the sub-prime market and I doubt you will qualify for 100% financing in the forseeable future.

I would suggest you take the time to get your financial situation cleanied up and save some money so that you don't repeat your history. "Those who do not learn from the past are desitined to repeat it."

Good luck

There have been many changes in the sub-prime lending market as of late. You may find it difficult to find 100% financing after only 1 year since a bankruptcy discharge and foreclosure. The best plan would be to save up a minimum 3-5% down payment (plus closing costs) before you enter the housing market again.

Foreclosure and a chapter 7?

Hot Topic