What are my chances of getting a mortgage?

[Danielle1981]

Alright so here's my situation because I'm trying to get everything in line to buy something small.

I bought a house in 2002 and it was foreclosed on in March 2005. At the time I was undergoing cancer treatment and was drowning in debt with everything else. Needless to say I had zero money. Not only that but when the house was foreclosed I was in the hospital and lost everything in it. So I had to start from scratch with everything and having three kids in tow well that makes it that much harder. So it wasn't until the next year when I got the tax return (Paid him in June but it wasn't filed until July 2006) that I had the money to get us back situated into an apartment and file bankruptcy. I did include my foreclosure in the bankruptcy when I filed it but it does not reflect as IIB on the credit reports.

My questions are:

Is this going to count as two negative hits? The other thing is when I pulled TU it said this was due to fall off in 2009 but when I checked it today it's actually completely gone off my credit report, not for Exp or Eq. just TU.

Should I try to have the report state IIB?

What are the chances of me being able to get another house? About how long should I wait before trying?

[HHM]

You could probably get financing today, it really depends on how bad of deal you are willing to make and what you can afford. If your wiling to make a horrible deal, then you can probably buy house in the next couple months (but given your financial circumstances, and just in general, you should not make a horrible now, just to satisfy your want of owning a house).

Generally speaking, to get mortgages that are not sub-prime mortgages (i.e very bad deals), you have to wait 2 years from the date your BK was discharged.

Odds are, because the foreclosure happened well before the BK, they probably will be seen as 2 different events, but that depends on the lender.

[poorme]

I've been told that with certain hardship cases, particularly when a severe medical situation is present, that FHA can waive the two-year requirement for being post bk to 1 year, and provide standard rates (depending on how you've performed since. I'd check with a mortgage pro - there's one that posts here a lot - perhaps he can add some thoughts.

[Danielle1981]

I'm not trying to do sub-prime if I can help it. I was thinking of putting about 30k down and buying something on the low end. No more than 1k a month. So in about 2 more years. I should be 3 years out of bankruptcy.

[MTG_BANKER_OH]

I'm not trying to do sub-prime if I can help it. I was thinking of putting about 30k down and buying something on the low end. No more than 1k a month. So in about 2 more years. I should be 3 years out of bankruptcy.

You are going to be best off waiting until your BK is 1 year out from the discharge and possibly trying FHA, but is is tough to get it approved less then 2 years. You have to put together a strong file to get it through. Was your old home FHA? If so that could pose a problem as well for an FHA loan.

FHA likes to see 3 years out on a foreclosure. Again with your situation it may be possible.


As far as the account goes I would not bring any other attention to the account as long as it is not reporting to the credit bureaus anymore because. Any recent activity could actually hurt your scores rather then help. It is going to be up to teh underwriter whether they count it as 2 instances or not, they may count it as one. The best thing to do is if it is not reporting then make sure you have documentation showing the house was in the BK. Now if you are going to wait a while you may want to try and get it updated or deleted if you can.

[Danielle1981]

It was an FHA loan

I wasn't planning on doing it tomorrow or anything. I'd like to get my credit rebuilt. I was just wondering what I might be looking at in a couple years if I tried.

[Mortgage Guru]

I would say one year you have circumstances with medical conditions, my concern would be the time between the medical issues and the filing. I would like to see them without a great period of time between them. I think you can get it approved FHA manual underwrite.I would have to see the other factors. you do have a strong case for an exception. I could only help you in the New England States and Florida.