We just filed bakruptcy, can we get a loan to buy a house?

The answer is no.

It will take either a bad hard-money loan with lots of cash down and horribly high interest rates or to wait three to five years based on the loan type you apply for.

I am just sorry that it sounds like you were not advised of that reality prior to filing.

Many people are opting for bankruptcy by default or upon bad recommendation by others because it appears to be a quick fix to a tough dilemma. However, bankruptcy is viewed by most financial advisers as a last resort when all else - credit counseling, budgeting and other efforts have failed.

Bankruptcy has far reaching consequences which make every day life very difficult for many years. Over the next few years you will find that it will impact your credit, finding employment, impact every day tasks like renting a car, and other necessities of life. Notwithstanding the fact that whether you are allowed a loan in a few years or not, your credit report will still wear the bankruptcy label for the next seven to 10 years depending on how you filed.

Why am I going on about this? Because you are now in a position to tell someone how to avoid what has happened to you. I am certain that if those who have had to file could do it again, with better counsel, they would not file or would not place themselves in a position to have to file.

Now that you have some time on your hands while you await the bankruptcy discharge, there are great free online tools to help you in beginning again and staying on track in preparation not only to purchase but to also establish spending disciplines that lead toward a healthier financial future.

I personally recommend sites such as http://www.mint.com and http://www.crown.org - wonderful and easy to understand tools that I use myself and have referred to family and friends.

Also, please don't go the hard money route. There is no guarantee of what the market will do and you are in no position to take such a financial risk.

My best to you,

Keisha Mathews, REALTOR
Century 21 Landmark Network

Need an Approval from Franklin Credit (In Jr Lien position)?

We just received an approval from Franklin Credit and after much back and forth (one year to be exact), we also received the truth as to what the REALLY are trying to attain.

When your offer with Franklin Credit is declined, Franklin Credit and its employees are instructed to tell you that they cannot give dollar amounts, you just need to resend a better offer. For the past three months, our strategy has been to "up" our offer to them, starting at the promissory note for 10K, then increasing in increments of 20, and slowly increasing the cash contribution to them. This was based on the fact that they won't disclose an acceptable amount, and the threads which I had read regarding strategy and acceptance with Franklin Credit.

However, I am assuming it was our lucky day when we got a rep on the phone who stated the following (directly from our system file notes): "(Rep) asked how much is he able to bring to the table? I informed of the promissory note of 15,000. (Rep) states regardless if promissory note is signed or not, a minimum of 10% which is 16,342.00 has to be paid. (Rep) advised to send an updated HUD with the corrected payoff amount and resend the higher offer to fax 201-839-XXXX Attention (Rep). "

We of course called back the next day to confirm the info, but were told (reprimanded would be more like it) that the rep should not have told us that because, again, they are not allowed to disclose figures.

However, on 11/30/09 we acted on the payoff of 10% and were told today that the approval letter had mailed to title (which was weird as well) yesterday. (UPDATE: I just received the letter in my email as well).

I recommend cutting to the chase and "finding" 10 percent of the balance owed and get it over with. They are not the most pleasant people to deal with either.

I also recommend dealing ONLY with the supervisor once you know that your acceptable offer is there for fast expedition (and she's much nicer to deal with). Email me if you'd like that info (sorry, REALTOR's only) (keisha.mathews@century21.com)

Because this info is so hard to come by, I only ask that you PLEASE respect her info and DO NOT bother her until you are ready to go straight to the ten percent. If you bother her with the small stuff you may make it harder on others trying to attain legitimate approvals.

Hope that helps! See ya in escrow!

Keisha M. Mathews, CDPE, REALTOR® | License# 01439130
The Short Sale LadyTM | Century 21 Landmark Network
(916) 266-4835 office - direct | (916) 405-3886 efax
DEDICATED TO PARTNERING WITH LOSS MITIGATORS TO REDUCE FORECLOSURES!