Mortgage Loan  

 

jackaroo
(@jackaroo)
Active Member
Joined: 6 years ago
Posts: 12
June 11, 2014 8:00 pm  

Anyone know who underwrites FHA loans??? Or who will work with a person with a bankruptcy in the past 4 yrs??


Quote
speee1dy
(@speee1dy)
Expert
Joined: 11 years ago
Posts: 8750
June 11, 2014 9:06 pm  

just curious if you did your bk here? how was the process?


ReplyQuote
Ericw
(@Ericw)
Advanced Member
Joined: 9 years ago
Posts: 277

ReplyQuote
jackaroo
(@jackaroo)
Active Member
Joined: 6 years ago
Posts: 12
June 12, 2014 6:50 pm  

Thanks!


ReplyQuote
Alana33
(@Alana33)
Expert
Joined: 8 years ago
Posts: 12198
June 12, 2014 8:28 pm  

Wasn't there a posting on this subject not so long ago with a list of mortage companies that do business here?
Scotia does loans as does First Liberty and a couple others. Don't know about the bankruptcy issues, however.


ReplyQuote
jackaroo
(@jackaroo)
Active Member
Joined: 6 years ago
Posts: 12
June 25, 2014 3:57 pm  

I have enough to put 50% down, every mortgage bank I called told me I had to wait 7 yrs!!! That's when the Bankruptcy falls off, FHA guidelines are 2-3yrs, the banks I called that did FHA loans didn't seem to be able to get their brains passed the 7 yr fall off date, even though FHA clearly states 2-3yrs.....does anyone know anyone at a bank??? Broker??


ReplyQuote
East End Doug
(@East_End_Doug)
Advanced Member
Joined: 13 years ago
Posts: 236
June 25, 2014 9:37 pm  

This sounds like you are looking for a private mortgage. Find someone who is selling and owns the house free and clear.This is a unusual market, many people are land poor but want to sell. Some will never sell and some are off island and want to get rid of their house. Take your time and you can find a deal that meets your needs. Buy something you can afford now


ReplyQuote
RevFD
(@RevFD)
Advanced Member
Joined: 5 years ago
Posts: 101
June 25, 2014 10:30 pm  

First, there is a very valid reason why there is a wait period (which I personally support 100%).

Any realtor on the island can give you a a list of lenders or brokers. Speaking with a broker may not hurt just to take the temp on the broader market and gauge what appertite may exist for someone in your situation. If you find yourself a lender, prepare to pay a premium on the rate. Your credit score will ultimately determine the rate which will give you an idea of what you can afford.

I think your best bet (as already pointed out) is looking into alternative financing solutions. A motivated seller may be able to provide temporary bridge financing for say 2-3 years until you can apply for a conventional loan.

Good luck.


ReplyQuote
Alana33
(@Alana33)
Expert
Joined: 8 years ago
Posts: 12198
June 25, 2014 11:09 pm  

Right now, your credit score (nor equity or anything else for that matter) does not count as much as your debt to income ratio and what your last 2 yrs. of income tax payments said you earned. DTI has to be at least 43%. Credit rating, equity or assets are no longer enough.
You have to show sufficient income to cover the mortgage and any other obligations.


ReplyQuote
ChrisMI
(@ChrisMI)
Advanced Member
Joined: 7 years ago
Posts: 213
June 26, 2014 2:19 am  

I have enough to put 50% down, every mortgage bank I called told me I had to wait 7 yrs!!! That's when the Bankruptcy falls off, FHA guidelines are 2-3yrs, the banks I called that did FHA loans didn't seem to be able to get their brains passed the 7 yr fall off date, even though FHA clearly states 2-3yrs.....does anyone know anyone at a bank??? Broker??

Hi Jackaroo. 50% down opens up many more options for you. Which mortgage banks did you contact?

All the kinds of loans available in the states are techinally available in the VI as well, but becuase most firms don't want to deal with servicing loans in the VI (notably issues of being really behind in crediting tax payments, and foreclosure difficulty, in addition to the USVI's tiny population not makeing licensing and regulatory compliance cost-effective) there is just a much, much smaller set of firms that can lend here. You're not dead in the water, you just need to find a knowledgable loan officer that works for a broker or bank that offers what you need.


ReplyQuote
sheiba
(@sheiba)
Advanced Member
Joined: 8 years ago
Posts: 483
June 28, 2014 1:18 pm  

Just curious...How does that work? You file bankrupt but have enough cash to put 50% down on a house?


ReplyQuote
speee1dy
(@speee1dy)
Expert
Joined: 11 years ago
Posts: 8750
June 29, 2014 12:39 am  

sheiba, lots of reasons why someone would file bk, and then a few years later have enough for a down payment. also some bk's you actually pay back what you owe-all determined by the courts-i think. medical bills are still a very big reason people file bk. also a loss of a job is a factor. when you finally get a job again, you do not go the cc route-pay all cash for things live frugally and save your money. happens all the time. no i have not done it though i am curious how it is done down here. there are a few message boards with info for stateside. and i have friends that have done it stateside.

you would probably be surprised at the number of people and the type of people who file. now i do have a friend who has a job and just went spend crazy. her fault but she will still probably be able to get it all discharged due to the debt/income ratio. and no she has never been without a job. her sister had to do the type with a repayment plan. i now people who have filed due to medical reason.


ReplyQuote
speee1dy
(@speee1dy)
Expert
Joined: 11 years ago
Posts: 8750
June 29, 2014 12:41 am  

jackaroo, i sent you a pm.


ReplyQuote
mtdoramike
(@mtdoramike)
Trusted Member
Joined: 7 years ago
Posts: 955
June 30, 2014 5:01 pm  

Good, no one who has filed for bankruptcy should be entitled to a home loan for the full 7 years. This is a penalty to hopefully force people to learn to live within their means. In the states, you might have found a mortgage company foolish enough to loan you money before the 7 year term was up, but not St. Thomas thank goodness. You would be better off renting rather than buying, especially in the islands where most people don't stay more than 2-5 years.


ReplyQuote
mtdoramike
(@mtdoramike)
Trusted Member
Joined: 7 years ago
Posts: 955
June 30, 2014 5:02 pm  

Just curious...How does that work? You file bankrupt but have enough cash to put 50% down on a house?

I had issues with this as well???


ReplyQuote
speee1dy
(@speee1dy)
Expert
Joined: 11 years ago
Posts: 8750
June 30, 2014 9:21 pm  

plenty of reasons. it does not always have to do with living within your means. catastrophic things can and do happen


ReplyQuote
STXBob
(@STXBob)
Trusted Member
Joined: 13 years ago
Posts: 2138
July 1, 2014 1:17 pm  

This is a penalty to hopefully force people to learn to live within their means.

And the survey says: Uncontrolled Spending accounts for 15% of US bankruptcies.

Medical Expenses is the #1 reason: "Recent studies have shown that 42% of all personal bankruptcies are a result of medical expenses. The study also reveals that 78% of those who filed had insurance."

Job Loss is the #2 reason, at 22%

Source: http://www.clearbankruptcy.com/financial-literacy/10-leading-causes-of-bankruptcy.aspx


ReplyQuote
mtdoramike
(@mtdoramike)
Trusted Member
Joined: 7 years ago
Posts: 955
July 2, 2014 12:00 am  

This is a penalty to hopefully force people to learn to live within their means.

And the survey says: Uncontrolled Spending accounts for 15% of US bankruptcies.

Medical Expenses is the #1 reason: "Recent studies have shown that 42% of all personal bankruptcies are a result of medical expenses. The study also reveals that 78% of those who filed had insurance."

Job Loss is the #2 reason, at 22%

Source: http://www.clearbankruptcy.com/financial-literacy/10-leading-causes-of-bankruptcy.aspx

I would have to agree to disagree here. When someone starts putting percentages onto something that usually means they don't know crap from shinola. I have been in the position of having medical bills of close to $100.000.00 and no medical insurance. But guess what, I setup a payment plan with the hospital, who had no problem with it. Now, had I run up a ton of credit card debt along with other spending, then yep I would have been in the same position. But I was able to pay off that debt within 7 years. BUt I didn't own a fancy home nor drive a porche or new car every couple of years. What extra money I had after paying house hold bills went towards paying off the hospital bill. But this was also back before everyone had a credit card, I didn't have any.


ReplyQuote
Ericw
(@Ericw)
Advanced Member
Joined: 9 years ago
Posts: 277
July 2, 2014 1:38 am  

I wonder what happened to the OP on this topic?


ReplyQuote
ChrisMI
(@ChrisMI)
Advanced Member
Joined: 7 years ago
Posts: 213
July 2, 2014 2:48 am  

I would have to agree to disagree here. When someone starts putting percentages onto something that usually means they don't know crap from shinola. I have been in the position of having medical bills of close to $100.000.00 and no medical insurance. But guess what, I setup a payment plan with the hospital, who had no problem with it. Now, had I run up a ton of credit card debt along with other spending, then yep I would have been in the same position. But I was able to pay off that debt within 7 years. BUt I didn't own a fancy home nor drive a porche or new car every couple of years. What extra money I had after paying house hold bills went towards paying off the hospital bill. But this was also back before everyone had a credit card, I didn't have any.

So when someone posts percentages or statistics is means they don't know crap from shinola, but when another's retort has nothing but their own antecdotes and conjecture it means what again?

I'm sorry that your medical bills were so obscene, and kudos to you for making a payment plan and paying them off (in all seriousness), but the truth is that the largest causes of BK are NOT out of control spending, but bad stuff that happends to people, just like they happen to corporations (which are much less villified comparatively) too.


ReplyQuote
DavidBank
(@DavidBank)
Active Member
Joined: 5 years ago
Posts: 12
July 2, 2014 6:43 pm  

I agree this has gone astray. Back on topic. I know the VI has an International Banking Enterprise law, IBEs are forbidden from doing business with VI residents except under two circumstances 1) the project is more than $1M (these are normally commercial) or 2) if the customer has been turned down in writing by a bank in the last 30 days (this I think may apply to you). Also to put the IBE at a disadvantage so that it is excluded from competing with domestic banks they are required to write the loan FNMA bench + 5% rounded to the nearest quarter (9.25% last I looked). This may get the deal done at a yuck interest rate which you will re-finance at your first opportunity which is the reason the law was written like that.


ReplyQuote
Settlers Handbook

Thinking about moving to the Virgin Islands?

The Settler's Handbook is a Indispensable Guide

The current 18th Edition, will help you explore your dream of island living. A solid reference book, it was first published in 1975. That's 40 years of helping people move to the Virgin Islands.

Order Today $17.95
Close Menu

Please Login or Register