I have read that you can qualify for a mortgage 2 years after BK. Is this time frame accurate for a BK and foreclosure? If not, would this mean you'd have to wait the full 10 years before qualifying again?
There are home mortgages available one day after your bankruptcy is discharged. The interest rate will be very high, though. If you want the best interest rate, you need to wait two years after discharge, and not have any other negative credit during that time.
Re: Re: Homebuying after Ch7/foreclosure The last thing that you need is additional credit. Also, it is very hard to get any additional credit with a BK (or any other derogatory infor) on your record for the duration of the time that the negative info will stay on your credit report. In the real world, most lenders go by the principal that if it is on your credit record, then it counts whether the negative even occured 5 weeks or 5 years ago.
Re: Re: Re: Homebuying after Ch7/foreclosure Sorry, I my computer didn't download the English translation of your post.
Re: Re: Re: Homebuying after Ch7/foreclosure NickL And what eal world are you in??? There are countless examples of people getting credit post bankruptcy and many of them have posted here. If you are going to post and be involved here, at least make an attempt to be accurate when doing so. The last thing that is needed here is another poster posting grossly inaccurate information and claiming it to be the truth. Oh and BTW, I am in the finance business and yes I DO know what I am talking about. fla-tan
Mary In order to qualify for an FHA mortgage, you have to have a clean credit profile for 2 years after discharge of a chapter 7 Bankruptcy. If you are in a chapter 11, then you have to have been making the payments for at least 1 year with no lates and you will need permission from the Bankruptcy Trustee. To qualify for a conventional mortgage, you need to be 4 years post BK7. Again, with a clean payment history post BK. Most sub-prime lenders that will allow you to get a mortgage with just a year out of BK and there are even a few that will give you a mortgage just 1 day post BK. I hope this helps you. fla-tan
Thank you, fla-tan, for your real world advice. Nickl, many, many people have managed to obtain new credit within six months of bk 7 discharge. I have three new credit cards myself and once I finish cleaning up my credit reports I will try for an installment loan. Entire purpose - establish new positive tradelines. In fact, it is imperative to establish new positive tradelines after bk, especially if you want to buy a house within a few years. People file bk 7 or 13 for all kinds of reasons. Yeah, I'm sure there's a certain percentage who were just irresponsible with their credit, but most folks have experienced a combo of life altering events: job losses, serious medical problems, divorce. And yes, it really stinks to have to use credit to prove to the "world" you can handle credit. In my case, I use my "new credit" for only those things I would buy using cash/check/debit card. Mary, perhaps if you need a loan before the two years until you can qualify for an FHA loan, and you need a new home before then, perhaps you find "sub-prime" lenders in your phone book or the newspaper (they usually say something like they deal with problem credit). You'll want to ask the "lender" if you can convert to an FHA loan after you two years are through. And I've heard, not sure if this is true though, that sometimes the FHA will give you a loan before your "two years" is through if you have supporting info that your credit problems and/or bk was "beyond your control".
Thank you all, so much for your responses! I'm still not sure though, will the foreclosure have an added adverse affect? No one made reference to this double whammy! I'm in no rush to establish credit, although I'd like to have a home again some day. I'm not interested in the sub-prime rates, I'd rather wait a few years to clean things up. (If anything, I'll probably need a car first, anyway). Thanks again!
If I am not mistaken, with a bankruptcy and foreclosure, the wait time is 3 years for FHA, not 2. Fla-Tan ?
