Mortgage After BK

[lostinnola]

I have a question about getting am mortgage after a chapter 7 bankruptcy. We filed in February 2010, discharged May 2010, house was sold at sherriffs sale March 2011, and deed was transfered out of my name May 2011. I read that you have to wait 2 or 3 years after a bankruptcy and/or foreclosure to get a mortgage again. The house was included in the bankruptcy.

So in my case, would it be 2 or 3 years from the filing date, the discharge date, the sherrifs sale date, or the transfer of the property out of my name? We are not in a huge hurry to jump back into a mortgage but are trying to plan ahead for the future.

[screentest]

Your 36 month seasoning time for a new mortgage (FHA at least) started when the home was transferred out of your name.

I am still waiting for my clock to start running even though however I doubt I will want to be back on the hook for a slave mortgage with any lender after that. I am enjoying my freedom from banks too much!

ST

[dp1969]

I have a question about getting am mortgage after a chapter 7 bankruptcy. We filed in February 2010, discharged May 2010, house was sold at sherriffs sale March 2011, and deed was transfered out of my name May 2011. I read that you have to wait 2 or 3 years after a bankruptcy and/or foreclosure to get a mortgage again. The house was included in the bankruptcy.

So in my case, would it be 2 or 3 years from the filing date, the discharge date, the sherrifs sale date, or the transfer of the property out of my name? We are not in a huge hurry to jump back into a mortgage but are trying to plan ahead for the future.

3 Years from transfer of property. We are in escrow right now. Started planning on our return to "home ownership" right after the discharge. We were diligent with our rebuilding of credit and general spending habits. Spoke with a broker and after 3 years, we were good to go. But, I hear FHA rules are going to change when it comes to down payment. Right now, it's 3.5 but my broker told me it was going up to 5%. You've been through the worst of it...now relax a little, rebuild your credit and save up some cash.

Forgot to mention the most important part...there is an exception to the 3 year wait by the digression of the underwriter of your lender. If you are not quite 3 years from transfer of property but have at least the 2 years of good credit rebuilding and can show cash reserves, they can overwrite the 3 year policy. It happened in our case. Our FICO's are in the high 700's and we have plenty of cash reserves. Our foreclosed home is not quite 3 years out (September) and we were approved. So it can happen...just need to shop around.

[nomoneynomore]

We too were approved before the 3 years were up. We went through Rural Development & after being denied once, they called us back & approved us. In KS, FHA & Rural Development both required 2 not 3 years.