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Company Loan Type APR Est. Pmt.

Loan after BK/Short-sell

Posted on: 14th Sep, 2010 08:56 pm
I am in California and filed chapter 7 BK in 2007. In 2008 the mortgage carrier asked that I do a short-sell as a courtesy so the house didnt sit even though I wasnt legally responsible; I did and it closed 4/2009. How soon can I qualify for the FHA loan? Do they go off of the BK or the short-sell? I am assuming the BK since it wiped my mortgage debt but I am confused?
Hi dk_bradley,

You filed bankruptcy in 2007 and 3 years had passed since then. After 2 years of discharge, you'll be able to qualify for a FHA loan. But as you had short sold the property in 2009, you'll have to wait for 2-3 years in order to qualify for a FHA mortgage.

Thanks,

Jerry
Posted on: 15th Sep, 2010 02:56 am
Even though the debt was completely discharged in 2007 and I was not legally or financial responsible? I was told I was pre-approved so I am a little concerned now with the statement above.
Posted on: 15th Sep, 2010 06:03 am
Hi dk_bradley,

Even though the mortgage was discharged in your bankruptcy filing, the lender holds the lien on the property. However, your property has been short sold. So you need to wait for the time period as mentioned by Jerry and then get a mortgage. As far as I know, lenders will not be ready to give you a mortgage before 2-3 years have passed since the short sale.

Take care.
Posted on: 16th Sep, 2010 03:02 am
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