Re: Chapter 7 Filed in 1992
Quote:
My question is doesn’t banks or credit unions check to see a persons background and if there is a bankruptcy in the background does it effect their credit in any way?
Yes they do but the house purchase was 8 yrs post bankruptcy, so it's likely here that your mothers name and credit were used to help secure the mortgage. Bankruptcy only stays on your credit for 10 years max and depending on what your sister had discharged, it may have been removed after 7.
The banks DONT do such a great job of screening good applicants...why do you think our economy and financial state is the way it is today?
Re: Chapter 7 Filed in 1992
Thank you for validating my thoughts! If people like my sister can buy half a million dollar house with a $32000.00 yearly income (this was for the year before the house was bought and disclosed in a divorce proceeding in court documents) then something is bad wrong somewhere!
Re: Chapter 7 Filed in 1992
It's quite sad actually. People near poverty trying to live the lifestyles of the rich and famous.
I once listened to a couple who had a COMBINED income of 43,000 per year tell me about their fianancial problems (needless to say the problems were MAJOR). They were able to get the house bc of an adjustable rate mortgage that was at 1.9 for 2 yrs. then went to prime and then prime plus something (cant remember what it was). Their house payment went from 1600.00 per month to just under 3900.00 and the next rate increase which they were looking at would put it over 4 grand a month. The only way out for them was foreclosure and bankruptcy.