Posted on: 25th Oct, 2013 12:27 am
I filed bankruptcy in 2009 and now when I applied for a new loan, my lender said I will not get the loan as I have to wait for 7 years after foreclosure. Is foreclosure the same as having a property included in Chapter 7 bk?
Hi Guest,
Foreclosure is not same as filing Chapter 7 bankruptcy. But I guess recently, your property that was included in Chapter 7, got foreclosed and that was reported in your credit report. Even after saying that, after a foreclosure, you will have to wait for 3-4 years to get qualified for a mortgage and not 7 years.
Take care
Foreclosure is not same as filing Chapter 7 bankruptcy. But I guess recently, your property that was included in Chapter 7, got foreclosed and that was reported in your credit report. Even after saying that, after a foreclosure, you will have to wait for 3-4 years to get qualified for a mortgage and not 7 years.
Take care
While a foreclosure and a bankruptcy filing are not the same thing, when a mortgage is included in a bankruptcy filing, it is treated as a foreclosure when looking at the mortgage guideline waiting periods for how long one must wait to get another mortgage.
FHA requires waiting 3 years unless you can document extenuating circumstances (serious illness or death of a wage earner) and then the lender can grant an exception to the 3 year requirement.
Conventional loans require after a foreclosure a waiting period of 7 years to get maximum financing if the foreclosure was due to financial mismanagement.--5% down payment.
If there were extenuating circumstances, one can get a conventional mortgage between years 3 and 7, but, must be at least a down payment of 10%.
FHA requires waiting 3 years unless you can document extenuating circumstances (serious illness or death of a wage earner) and then the lender can grant an exception to the 3 year requirement.
Conventional loans require after a foreclosure a waiting period of 7 years to get maximum financing if the foreclosure was due to financial mismanagement.--5% down payment.
If there were extenuating circumstances, one can get a conventional mortgage between years 3 and 7, but, must be at least a down payment of 10%.
