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Level 1
posted Jan 10, 2020 3:13:58 PM

I own my home outright

I own my hone and owe nothing on it. My credit was 300 after filing bankruptcy years and years ago. It’s around 600 now. Why am I having such a tough time getting a home equity loan of some type??? I have not missed any payments on anything in over a year.

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4 Replies
Level 15
Jan 10, 2020 5:57:52 PM

how many years since you completed the BK process?

 

If you apply for a loan (and they 'pull credit') and you are turned down, the lender is REQUIRED BY LAW to provide a reason you were denied.  have you asked them? 

Level 1
Jan 16, 2020 11:13:04 PM

They said I was denied because of the price I paid for my home. I only paid 11,000 because it was a foreclosure. We gutted it and rebuilt it. Most sites state it’s now worth 90,000 besides the work on the outside, we had a survey done and we own more land than what was originally listed in 1968. I’m confused and getting impatient. I don’t know how else to get a loan to finish the construction I would like, not what it needs. 

Level 1
Jan 16, 2020 11:16:12 PM

My bankruptcy was in 2015. I understand it stay there for years but I’ve busted my butt to make all payments in time and have 0 credit card debt and all my student loans are paid off.

Level 15
Jan 18, 2020 1:52:33 PM

the fact that the BK was only 4-5 years ago is the problem.  Normally, it's 7 or so years under traditional lenders feel comfortable lending to someone who has gone through BK.

 

But that is 'traditional' lenders.  What you'll need to do is ask around - start with mortgage brokers - and see if they know a non-traditional lender (and I am not talking 'loan shark!) who is willing to lend in this situation.

 

do you have a recent appraisal to substantiate that the home is worth $90,000?