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can i buy a home with a bankruptcy

by Warren from Spanaway, Washington. Jan 13th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

There are 2 waiting periods in question, and your response isn't clear.. Bk waiting periods for FHA are 2 years.. however if there was a home included in the BK, or the home was short sold or foreclosed... then the waiting period now becomes 3 years from the date the home was transferred out of your name.. in your responses, you are not clear as to how the home was sold.. Did you sell it or was it sold by the bank?.. Big difference.. if you sold it as a regular sale, not a short sale, and not a foreclosure, but just a regular sale, then you will need to wait 2 years after the discharge date of the BK.. if the home was short sold, foreclosed, or deed in lieu, then the waiting period is 3 years from the date the home transferred out of your name.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jan 13th 2013
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

It doesn't matter if your home was included in the Bankruptcy or not. If you give a home back to the bank, or the bank takes it from you, then it is considered a foreclosure. Your waiting period for a new FHA loan is going to be three years plus one day beginning on the date the property was transferred out of your name. There may be some that will tell you otherwise, but FHA will NOT insure a new mortgage until the three years has passed. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950.

Jan 14th 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Yes you can, but there are waiting periods depending on the program you are looking to use. Also, there are credit requirements as well for Minimum Credit Score and Tradeline Requirements too. Happy to discuss your situation directly if you'd like. Feel free to contact me to go over this in more detail. Enjoy the night!

Jan 13th 2013
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I have been discharged from chapter 7 bankruptcy since September 2011. All debt, including my home, was included. The home never reached a forclosure status. Since then I have worked very hard to rebuild my credit and not incur any debt. My score is back up to a 650 and I have steady income of $68000/year. Due to the slow economy, I was laid off for several months in 2010 and 2011. Up until that point I had a solid credit history of more than 10 years with not so much as even a late payment. I am really hoping to find a lender that is willing to give me a chance to prove that I am worthy of being a homeowner once again. All advice and opinions is greatly appreciated.

Jan 13th 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Hi Warren, you noted your house was in the BK, but what is the status of the house now?

Jan 13th 2013
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The house was already sold and is listed on my credit report as included in bankruptcy.

Jan 13th 2013
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

was it a 13 or a 7? linda yourloanpartnerforlife@liv.e.com

Jan 13th 2013
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Chapter 7. Details stated above.

Jan 13th 2013
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 73 contributions

Hi Warren, this blog post I wrote is a good resource to review. Different loan programs have different waiting periods http://www.epropertysites.com/blogs/1240435336/6/When-can-you-get-a-Mortgage-again-after-a-Negative-Credit-event.html

Jan 13th 2013
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 73 contributions

Hi Warren, I wrote a helpful blog post on the subject. Different loan programs have different waiting periods. Hope it will be a good resource for you. http://www.epropertysites.com/blogs/1240435336/6/When-can-you-get-a-Mortgage-again-after-a-Negative-Credit-event.html

Jan 13th 2013
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Shashank Shekhar (shashank)
#663 ranked lender in California - 7 contributions

This should answer your question - http://lendingexpertblog.com/buying-a-home-after-short-sale-foreclosure-or-bankruptcy-a-complete-guide/

Jan 13th 2013
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Thank you all for your replies. It is greatly appreciated. Are there lenders that view the date of the bankruptcy discharge as the starting date, or does the post BK foreclosure date take precedence? Wouldn't it be more logical for banks to get people back in these homes as soon as possible. Afterall, a person isn't eligible for another BK for seven years. Not as though I would ever want to go through one again anyways. Our economy has hurt so many people in the last several years, and there are a lot of honest hard working people that just wish to be a part and contribute to society once again. I was laid off of work, along with many others in the company, only because there just wasnt the work anymore. I now have my feet on solid ground again, have rebuilt credit, incurred zero debt in the last 16 months since discharge, and am just asking for the chance to be a homeowner again.

Jan 13th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

The time line goes by the date the property was transferred out of your name, not when you moved out, or when you called the bank and told them you moved.. it's when the title is no longer in your name.. and, NO.. there are no lenders who will use the BK Discharge date as the starting point.. Also, when asking about the lenders bending the rules, let me say it's not the "Lenders"... All conforming loans are insured.. VA, FHA, USDA, Freddie/Fannie.. are all insured mortgages.. When you apply, you're really applying for the insurance.. once your approved for the insurance, then the lenders, or those with the $$, are more likely to lend.. it's not a given though.. most lenders have their own set of guidelines above and beyond what the insurance guidelines are.. but it's the first step.. so to answer your question.. NO... they are not going to "bend the rules"... not with borrowers who have both a BK and a Foreclosure.. Just not going to happen.. The banks are not in the real estate business.. they are in the money business.. foreclosures cost them time and money... and trust me.. the lenders are making plenty of money right now without having to lend to folks with the BK's and foreclosures... you're just going to have to do your time.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jan 13th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

You have a two year waiting period at a minimum after the bankruptcy.

Jan 14th 2013
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J.D. Peck (MortgageColoradoSprings)
#45 ranked lender in Colorado - 77 contributions

2 years from the date of discharge for FHA.

Jan 14th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Yes two years after the discharge date of your BK you can qualify for an FHA mortgage. You need to make sure you have re established credit and no lates on your credit since the BK.

Jan 14th 2013
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Jeremy Redlinger (JeremyR)
#30 ranked lender in Minnesota - 191 contributions

Sure you can as long as enough time has passed to qualify for a home loan.

Jan 14th 2013
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Matt Pollina (matt@smartmtgs.net)
#59 ranked lender in Illinois - 40 contributions

Here is the waiting period breakdown: Fannie Mae and Freddie Mac- Chapter 7 is 4 years from discharge or dismissal date. Chapter 13 is usually 2 years from discharge date. FHA and VA- Chapter 7 is 2 years from discharge date. Chapter 13 is 1 year of payout must elapse and payment performance mus be satisfactory; borrower must receive permission from court to enter into a mortgage.

Jan 14th 2013
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