Many of you want to know the answer to the question, “How soon after a foreclosure covered by bankruptcy can you buy another house?”
A person who has had their property foreclosed on or given a deed-in-lieu of foreclosure within the past three years is not eligible for an FHA loan. The same person is not eligible for a conforming loan like a Fannie Mae until five years have past. Each commercial loan entity has their own rules as to when they will loan you money for a mortgage. Any of these rules can be superseded by extenuating circumstances.
Bankruptcy cases have their own rules about when you can get a mortgage on another home. A Chapter 7 bankruptcy, commonly called liquidation of your assets, is normally the simplest and quickest form of bankruptcy. A trustee that is appointed by the court will gather and sell your non-exempt property, and he will use the proceeds from the sale in order to pay your creditors.
A person who has filed a Chapter 7 must usually wait two years from the date of the discharge of the bankruptcy to get a mortgage loan. The borrower must have established good credit by this time or elected not to incur new credit obligations. Under certain extenuating circumstances like the borrower showing the bankruptcy was cause beyond their control, a borrower might be able to get a mortgage loan as quick as 12 months after the discharge of the Chapter 7. In addition, a lender must document that the conditions that caused the bankruptcy are not likely to occur again.
A Chapter 13 bankruptcy, commonly called a wage earner’s plan, enables individuals with regular income to develop a plan to repay all or part of their unsecured debts over three or five years. A Chapter 13 does not disqualify a borrower from getting a mortgage loan as long as the borrower can show in writing where one year of the payment plan in bankruptcy has been achieved and the payment performance has been satisfactory. In addition, the borrower must receive from the bankruptcy court permission to enter into the contract with the mortgage lender.
How soon after a foreclosure covered by bankruptcy can you buy another house? Technically speaking, you can buy a house as soon as you can pay for it. If you were to come upon a cash means of paying for the property, a foreclosure or bankruptcy cannot keep you from being an owner. What a foreclosure and bankruptcy does in this case is prevent you from buying a home on credit unless you follow the guidelines already presented in this article.
Filing a bankruptcy can complicate your financial situation while also providing you a fresh start. Common sense indicates you might need a bankruptcy lawyer in order to help you understand how complex bankruptcy laws may apply in your particular situation.
If you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan area of Akron, Ohio, contact us here today at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.
Latest posts by admin (see all)
- Free Information Resources for Filing Bankruptcy - August 15, 2013
- When Creditors Change the Rules in Mid Stream - August 13, 2013
- Understanding the Concept of a Claim in Bankruptcy - August 8, 2013