Tulsa Mortgage : Podcast 39 – Part 2
Tulsa Mortgage Steve: For two years, maybe three years, maybe four years, maybe five years. And then one day comes along that they say, “Okay, I’m ready to go buy a house,” they call us and we’re like, “Well, you still have a lot of that a residual negative stuff that’s affiliated with the bankruptcy that you had and you have no credit.”
We talked to a guy the other day that he didn’t even have a bankruptcy, but he just didn’t have literally had nothing since 2007, he had no open accounts. The only thing that he had since 2007 was derogatory counts. He just had negative. I don’t know, how he had a score, it didn’t even make really any sense.
So it’s not just that you have to file bankruptcy, have a two year waiting period and then you’re good to go and do an FHA loan. You’re going to have to have reestablished credit, you’re going to have to have demonstrated your ability to repay again. And trust me there are plenty of companies for a price that will lend you money immediately after bankruptcy.
You’re going to pay a higher interest rate, if it’s a credit card, you’re probably going to pay an annual fee, many times you’re going to have to do a secured credit card. Tyler, how many times we had people get secured credit cards?
Tyler: A lot.
Steve: Yes. Here’s the other thing too, as I said in the beginning, there’s exceptions to every rule. So there are times when you have what they call Extenuating Circumstances. Typically a medical issue, something major that happens that causes you to get late, which causes you to file bankruptcy.
Look, it says it in the guidelines, we looked at it the other day on conventional and unconventional, you can actually do FHA as well, you can do a mortgage after 12 months on a FHA if you have documented extenuating circumstances.
Tulsa Mortgage Tyler: Not lost a job. That’s not an extenuating circumstance.
Steve: No. “I got divorced” is not an extenuating circumstance because you chose to do that. Alan Brimley is asking on Facebook if we do loans on airplanes? No, we don’t, I can see you been working on your pilot’s license. Sorry.
So if you had a medical issue, maybe you got cancer and you were a fighter, you made it through, everything was good, but it ruined you financially and you filed bankruptcy. That might be something that happened that with documented medical bills, doctor’s note, that type of thing, that you can actually get a mortgage within that two year timeframe for example on FHA.
Tyler: It’s just going to be a lot of work though.
Steve: Yes, it is. And I won’t bore you guys with the- because we read this the other day, what the guidelines say, and it’s really an underwriter discussion. So you’re going to have to have an underwriter that that buys into what you’re doing and you’re going to have to document out the ying-yang. What does that mean ying-yang? You have to document out the-
Steve: Wazoo, or the other word out that, yes that.
Steve: Yes, that. Anyway, to recap some of that, on an FHA, we got two years, 24 months, on a conventional, I got four years, on a VA, I’ve got two years. USDA, we didn’t talk about USDA, three years, which is weird because USDA used to not even have a timing requirement. And then they went a little bit more aggressive than even FHA did.
Tulsa Mortgage Now USDA also has a provision that if you have extenuating circumstances that you can get a mortgage prior, but again, good luck because it’s a lot of documentation to figure that out. And everyone on Facebook is being funny. Are you on there? Are you watching us live on Facebook, while we’re recording? You don’t have to.
Alan Brimley is making things like that I pay cash for everything, I don’t need a mortgage, and I use cash to buy friends, Ryan Meyer says. [laughs] And maybe if I get these guys a loan, they’ll stop harassing me so much. Just kidding, both of them are great guys.
Bobby Thompson just jumped on here, another mortgage guy. He’s giving us facts on what the done well role comes from. [laughs] Anyway, the case that we are talking about, if you have like an extenuating circumstance, that doesn’t include getting over extended, having your business fail.
Anything that would have had something that you had control of, they’re not just going to say, “Okay, well, yes. Hey, I really tried my best to get this business going, Tyler and it didn’t work and so I had to file bankruptcy.” No. “Hey, times just got really tough and I had to file bankruptcy.” No. That’s not going to work.
Here’s what’s going to happen. You’re going to have to document a medical condition most of the time. Anyway, we’re talking today about filing a Chapter Seven bankruptcy and what the timing requirement is for a Chapter Seven bankruptcy, we’ll talk in a future podcast on specifically what a Chapter 13 or some other type of mortgage would have or time or requirement because they’re all different.
We talked about conventional is four years, FHA is two years, VA is two years, the USDA loan is three years. And then with extenuating circumstances, sometimes you get even before that, but you’re in have to document that at the wazoo, we decided is the term, the wazoo.
If you have filed bankruptcy, it doesn’t mean the end of the world. The advice that I could give anyone that would call me, is just to call me sooner. Right after you file bankruptcy, it’s like “Gosh, I did this and now I messed myself up and it’s going to be a couple years before I can buy a house.” Let’s get started on it now.
Because if you get with a professional, I can tell you all the stuff you need to do, so that you don’t call- Because it will happen though, people call me the day after their bankruptcy is 24 months old and they say, “Oh, my bankruptcy is 24 months old, now I’m ready to buy a house.” And then I pull their credit, of course, they don’t have any established credit, they’ve got lates on stuff, they got this, that, and then, now I can’t do it.
I’m saying call a lender, maybe a Tulsa mortgage lender, as soon as you file bankruptcy or as soon as that’s over, sometime in that timeframe, so that we can get started on it before your two years is up. Because when you’re trying to qualify for a loan, especially with us, here in Tulsa doing Tulsa Homeowner, Tulsa Mortgage, the sooner that you can call me and the sooner that I can get started on your file the better, right Tyler?
Steve: Word. So anyway that’s Episode Number a lot of our podcast, the Steve N’ Tyler Show. I think we’re getting our numbers of how many podcasts we’ve got mixed up, I guess. But we’re talking about bankruptcy, don’t forget to check us out at getqualified.com, stevecurrington.com, tylerwhyburn.com, we’re your Tulsa mortgage lender and we’re out.
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