Home Buying in Austin>Question Details

white96cobra…, Home Buyer in Austin, TX

Buying a home after bankruptcy

Asked by white96cobraxxxx, Austin, TX Wed Jul 4, 2012

What is the average wait time after a bankruptcy discharge to be approved for a mortgage?

After a foreclosure/bankruptcy/divorce, I'm not in any shape to purchase a home right now but I'd like to get there and be ready when I reach the point of having the greatest shot of being approved. Any advice or referrals would be great.


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That is a great question! Rules change so often, that Realtor's usually are not on top of the changes. Due to this I would recommend meeting with a bankruptcy attorney. They can be very helpful. There will be a lot of red tape that a good bankruptcy law firm can help you maneuver through. http://www.cincybankruptcy.com/
0 votes Thank Flag Link Mon Dec 29, 2014
It really depends on your personal situation. I would contact a bankruptcy lawyer who is really experienced.
Web Reference: http://www.abakhan.com
0 votes Thank Flag Link Fri Oct 25, 2013
I would contact a local lender in Austin and talk with them about it. I have heard 18-24 months is standard time, but only if your situation fits. Good luck!
0 votes Thank Flag Link Fri Sep 27, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes Thank Flag Link Sun Jul 21, 2013
Seems to me one's FICO Score would be adversely affected and would be difficult to purchase in two years. From my perspective(do not doubt it may be done somewhere else) but I would think 3-7 years is more likely.
0 votes Thank Flag Link Sun Jun 2, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
0 votes Thank Flag Link Sun Jun 2, 2013
I don't think you can get a mortgage approved if you've claimed bankruptcy. It might be a while before you can approve something like that. I would start working with a professional, because they can tell you the steps you need to take to be cleared for the mortgage you want. http://www.larimerbankruptcy.com/
Flag Fri Oct 24, 2014
It all depends on your situation. I would suggest that you talk to a lender and find out what needs to be done to obtain your future goal. You are right in being proactive in improving your situation; a lot of people that I've come acrossed choose not to do anything about it. Let me know if you need a name or two lenders. You may call or text me.

Good luck,
Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240


Servicing your real estate need is my priority!
0 votes Thank Flag Link Thu May 23, 2013
Tough financial issues to deal with. As stated by my colleagues it is in your best interest to get with a lender and start your process now; so that when you are ready to purchase a home, your credit is too. Have noticed the 2 yr. rule seems to apply in most cases, however depends on how that foreclosure hit the mix and whether it was addresed as part of the bankruptcy-then that is a 3 year wait.
Have some great lenders can steer you to.
Would also be glad to answer any questions.
Good luck to you.

Sonia Roberts, Realtor®
Canady Realty
"A satisfied customer is the best business strategy of all."

Michael LeBoeuf
0 votes Thank Flag Link Wed Jul 4, 2012
white96cobra, I believe the answer depends on what type of bankruptcy you actually filed, as in chapter 7 verses chapter 9, et cetera. Also, it may depend on what exactly was discharged and how your credit has been since, as well as what type of credit you've had since. The best thing I can do for you is connect you with one of my lenders who are much better suited to answer that question. It really is a lender question, not a Realtor question, but I can connect you with someone who can answer your questions at no cost to you and take a look at your situation and let you know how to get to where you want to be as soon as possible.

Feel free to give me a call, even today, and I can steer you in the right direction. And by the way, if your name refers to a car, as I'm guessing it might, we have a lot in common. They call me"Viper Joe", as I'm the only Realtor in town that drives and races Vipers, am the Treasurer of the Viper Club of America, and I'm also in many local car clubs that may interest you. If we talk, remind me about that and maybe we can share some information. Thanks, Joe Jarusinsky, Keller Williams Realty, 512-261-4415
0 votes Thank Flag Link Wed Jul 4, 2012

I've seen peopleget approved for a traditional mortgage in as little as 2 years after bankruptcy. of course it all depends on how proactive you are at getting your credit back to snuff. I would start off by getting secured loans from your bank and start making payments.

If you are interested in getting a home sooner and want to capitalize on the current market conditions, you can get an owner financed home much sooner (I've had a guy get a home only a MONTH after his bankruptcy!) I've got some homes available now if you're interested...

Good luck,

Randy Stevens
0 votes Thank Flag Link Wed Jul 4, 2012
It's about 18-24 months
I've seen it done in less time if your credit is spotless other than the bankruptcy/foreclosure.
Give me a call or email me and I'll refer you to my financial professional who will give you a timeline and also help you rebuild your credit as needed so that you're ready when then time comes.
Thanks for your question.
Happy 4th of July Holiday!

Felix - Realtor®
Mobile • 512-585-8381 (after 6pm family time, thanks!)
Website • http://felix.austinhousereport.com/
• Nationally ranked by - The Wallstreet Journal
• Ranked by - The Austin Business Journal
0 votes Thank Flag Link Wed Jul 4, 2012
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