Credit Repair
wanting to buy another home soon?
In 2000 I bought a home from a contractor who basically covered up a condemned home. FHA inspected the house and okayed it for sale. Gradually, it began to fall apart and it was found out that the contractor was a scam artist and had scammed quite a few people with messed up homes. I filed for bankruptcy because we were fixing up the home (major repairs) but, it was dismissed after the case was in court. A FHA inspector came out to look at the house and basically started a case against him because they were defrauded. They said I would get all the money back that was paid into the house but it will take a while. Anyway, my income total household income is $85,000 but, last year I was out with breast cancer and my credit went to pot. I would like to buy a home now that selling is so slow, but it is possible with all this? Shouldn't FHA help since they said this past house was okay to move in?
Public Comments
- FHA is pretty forgiving. They might require 12 months after a bankruptcy under any circumstance, but if they'd do your loan in 12 months, that'd still be pretty good. Make sure you can fully document this situation. And for this, I'd go to a big bank like a Wells Fargo that has staff underwriters who can actually make decisions on loans like this that take a lot of extra work and time to get done. But as long as you can prove, on paper, that this was the cause of everything, on top of the breast cancer, at least after 12 months worst-case, you'd be a good FHA candidate again. Maybe they'd do it sooner, but that would be a very exceptional case. Perhaps your case would be that exception. Good luck.
- It is possible, but from your background information, you will probably not qualify for as low an interest rate as you did on your current house, as your credit rating will flag you as a higher credit risk to the potential mortgage companies. As much as I hate lawyers, in general, it does appear that you should get some advice from a good one. Otherwise, if you are able to sell your house, it will probably be at a loss and you will be unable to recover your repair costs. Even if you are able to gain a judgement against the scammer, it might prove difficult to recoup your losses, but that is the only chance you have. Good luck. Hopefully, in the process, you can help put this guy out of business, which would help your community, too.
