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Hey All,

I am new to this board but not a new fool. I have enjoyed much success from reading the Credit Debt board and now I am looking too all of you for more guidance. I filed Chapter 13 2 years ago. Since then I have been working to reestablish my credit. I have one credit card that I have never paid late and presently have a 10% APR, But I did garner a judgement that I recently paid off. I am looking to buy a foreclosed property. Does anyone know how the BK negatively affect my chances. I know it will hurt but I would liketo know what they will say and require of me before getting qualified?

Slovell
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Welcome Slovell:

Wow, that was a quick Ch. 13! 2 years! Anyway, assuming that your BK is fully discharged, plus a judgement (assuming here that the judgement happened outside your BK settlement) Then you will probably be able to buy the property, but the money you will borrow will have a higher rate, so make sure that the property is worth it if you have to pay a much higher interest than if you had a clear credit history. If the judgement was included (and paid) on your Ch. 13, that is probably better.

If you are a first time buyer, (even with a BK) that will help your chances into enrolling to those programs who assist people buying property to live in)

I will start looking to buy property probably until the year 2004, b/c I won't be discharged until 2003.

Cisco

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Cisco,

Chapter 7 or chaoter 13? Which is the personal BK? It has not been discharged from credit report so I may be mistaken.

Sean
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Sean,

If your credit is clean post bk, you can qualify at conentional rates on an FHA mortgage. Also, I've heard that you may qualify for FHA financing if you have satisfactorily completed 1 year of your chapter 13 plan. I think this will be your only chance at avoiding subprime interest rates unless, you can make a 30% or so downpayment. Good luck!
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Sean,

They are BOTH personal Bankruptcies, but they are different. On Ch 7, you surrender your money/property, etc... up to a certain amount that you get to keep. That stuff is sold to pay creditors. You are usually discharged between 6 months to a year. You do not pay anymore besides what you have.

After discharge you are OK to get credit again.

Ch 13 is like a payment plan, your debt's interest stops or it gets reduced, the creditors cannot take your property away. you get to keep most of your property, but the money is taken from your paycheck into the BK trustee.
Usually Ch 13 takes between 2-6 years b/c your BK does NOT get discharged until you pay back everything. You cannot borrow until you have paid all back in full.

So (number one I am TOTALLY surprised that you declared BK, I've read your posts on other boards from time to time and you never 'fessed up, even when people on other boards think that us who declare BK are the scum of the earth, I wish you hadn't lurk around here so long, I do like your posts and would love if you visit often) Which BK do you have? Ch 7 (most common one) or Ch. 13? If you have NOT been discharged, then you cannot get additional debt to buy property, unless you pay cash.

Cisco



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