Mortgage Loan

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

Here are your 2 options. Keep in mind conventional loans down here require a 20% down payment
http://www.firstbankvi.com/?option=com_content&task=view&id=513&Itemid=250
http://www.popular.com/cs/Satellite?c=BP_LandingPage_C&childpagename=VI%2FLayout&cid=1234209859752&packedargs=language%3Den&pagename=bp%2Fcommon%2FWrapper_2#GA=FHA_LP

Thanks!

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.

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??

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

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.

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.

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.

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

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.

jackaroo, i sent you a 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.

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???

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

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

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.

I wonder what happened to the OP on this topic?

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.

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.