Foreclosure then a Bankruptcy......

I have a question on this.....

I was foreclosed on 04/2005 while I was in the hospital due to my cancer (subsequently is what put me out of work and not able to pay my bills). Then I had to gather money to be able to go bankrupt which is what I just did on the 14th.....I guess my question is has anyone ever been in a situation like mine to have a house foreclosed on then go into bankruptcy and be able to get a mortgage after that? How long should I wait after that to even have a chance to get into a mortgage? I think it was an FHA loan that I had before.

I mean I'm not looking at trying to get into a house even in the next 3 years but I want to get as much information as I can to prepare myself for it. Realistically, I'd be looking at getting something in the 150 range and putting down about 20k.

Working on the credit reports today as a matter of fact......

Probably after screwing up my FHA loan I'll probably be in a sub-prime lending situation is what I'm guessing.

There have been some mortgage brokers on here recently. I asked the same question, Danielle.

We got lucky to sell our house in the nick of time. Our Foreclosure Tech actually called the Court House on Auction day and cancelled the sale. I'd hope we would have saved something on our Credit.

According to the brokers posting here, we didn't do ourselves any good. Once you're so many months late and/or included in Foreclosure, Lenders view that as a negative event.

If you file BK within a short period of time as having a house Foreclosed, the brokers have said future Lenders will view that all as one event. Foreclosure and BK seperated by 6 months or more in time is viewed as 2 seperate events.

With the length of timeframe you are talking, waiting 3 years or so, you still shouldn't have any problem getting a new mortgage. You'll have plenty of time to rebuild your credit. Having a substantial amount down won't hurt at all either.

Hope your health is MUCH better!! :angel:

Okay okay so I found this info:

Bankrupt consumers whose homes were foreclosed on or who surrendered a deed in lieu of foreclosure within the previous three years won't be able to get a new FHA-insured mortgage. The lender might be able to make an exception if the foreclosure resulted from circumstances beyond the control of the borrower and the person has re-established good credit since the foreclosure.

http://www.bankrate.com/brm/news/bankruptcy/20060620d3.asp

If I'm reading this right....if I keep perfect credit for three years then I should be able to get another FHA backed loan.....right?

Okay okay so I found this info:

Bankrupt consumers whose homes were foreclosed on or who surrendered a deed in lieu of foreclosure within the previous three years won't be able to get a new FHA-insured mortgage. The lender might be able to make an exception if the foreclosure resulted from circumstances beyond the control of the borrower and the person has re-established good credit since the foreclosure.

http://www.bankrate.com/brm/news/bankruptcy/20060620d3.asp

If I'm reading this right....if I keep perfect credit for three years then I should be able to get another FHA backed loan.....right?

Maybe even sooner - your cancer was definitely beyond your control so you might qualify for an exception even before three years are up. Hope everything works out for you, Danielle - you deserve that!

Circumstance beyond your control is a big factor to getting mortgage credit quicker. In our case, it was job loss followed by a period of unemployment and then a new job outa state forcing us to relocate. In addition to reestablishing good credit of course. Be prepared to document everything.

Don't just get all CC's to establish new credit. Mortgage Lenders are looking for a balance of types of credit. Some CC. Maybe a car loan. If you rent from a Landlord that does not report to the CRA's, be sure to get a letter from them detailing your payment history. Same thing with your utilities and your phone. If they don't report, get records of your payment histories.

Something to keep in mind if you happen to move during that interim period and change to all new utilities and phone service.