Home Buying in 30341>Question Details

Joe Tarck, Home Buyer in V. M. Ybor, Tampa, FL

if i file bankruptcy can i buy a home and how do i do that

Asked by Joe Tarck, V. M. Ybor, Tampa, FL Sat Aug 17, 2013

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Reestablish your payment history with timely payments, there is a new program by HUD offering a second chance to borrowers with a bankruptcy or foreclosure to purchase 12 months after as long as positive payment history has be reestablished.
1 vote Thank Flag Link Sun Sep 1, 2013
There have been new changes to FHA Guidelines. If you experienced a loss of at least 20% income for at least 6 months, you could be eligible for FHA financing after 1 year providing you can document it and you can proof you have paid your rent on time for the last 12 month. Let me know if you have any questions.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Tue Aug 20, 2013
A lot would depend on the tye of Bankruptcy filed. You should plan that that being a minimum of 1-2 years away though.

FHA mortgages are the least restrictive for a previous bankruptcy. HUD currently requires that a minimum of 24 months must have elapsed from the DISCHARGE date of a Chapter 7 Bankruptcy before a borrower can be eligible for an FHA mortgage.

For a Chapter 13 Bankruptcy, then you must have made at least 12 on time payments. Additionally, you must also have permission to purchase from the Bankruptcy Court.

In the time since the Bankruptcy, there should be no new derogatory items such as late payments, collection accounts, liens, judgments, etc. Having late payments after a Bankruptcy is often viewed as a disregard for the importance of credit. It also reflects that you are still having financial struggles.

If a mortgage was included in the Bankruptcy, HUD requires that you must wait at least 36 months from the foreclosure date to be eligible for an FHA mortgage. Sometimes, the foreclosure happens well after the Discharge Date of the Bankruptcy. If the mortgage was not re-affirmed, there is not much that can be done until the property get foreclosed on.

Also, if the original mortgage was a government backed loan (i.e. FHA, VA, USDA), you must wait at least 36 months from the date that HUD paid the claim on the defaulted mortgage. This can sometimes be months after the original Foreclosure Date Until the 36 months on the claim has passed, you will not have a clean CAVIRS report which is required for an FHA mortgage.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Sun Aug 18, 2013
FHA has issued 3 mortgagee letter out this week, with big changes coming on October 15th! FHA will now allow serious job loss or income reduction (20% reduction in income)to be counted as an extenuating circumstance. Buyer might be eligible to purchase a new home after a 12 month waiting period with excellent re-established credit and documentation of income loss and credit counseling. Stay tuned! More info to come but this will certainly help get more buyers into the market in our area.

According to a letter sent to mortgage lenders, the FHA said it would offer mortgage insurance to borrowers who, during the recession, filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding.
The insurance is now available to those who can prove they are no longer financially compromised — and met all other FHA requirements.

"FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage," the letter says.
Besides the burden of proof on the borrower to demonstrate a recovery from the "economic event," the potential homeowner must also complete housing counseling. This event would need to result in a minimum loss of 20% of the household income.

The FHA is requiring lenders to verify at least a year has passed since the foreclosure and the economic event is responsible for the loss of the home or bankruptcy.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire
0 votes Thank Flag Link Sat Aug 17, 2013
Yes you may purchase a home after bankruptcy. If you file a Chapter 7, you may purchase after 2 years. It is very important to have no negatives after the bankruptcy. In the case of Chapter 13 you may be able to purchase sooner depending of your circumstances. If you have further questions or need asssistance feel free to contact Brownstone Properties at 888-767-4423 or http://www. brownstonepropertiesatl.com/,
0 votes Thank Flag Link Sat Aug 17, 2013
Joe, the answer is yes. If you're filing for chapter 13, you MIGHT be able to purchase right away. If you're filing for chapter 7, you must wait a minimum of 2 years, even then it depends what loan program you go with, some have longer wait periods.

It's very, very, very important that you re-establish credit as soon a possible after your bankruptcy is discharged. Even MORE IMPORTANT, NEVER EVER MAKE LATE PAYMENTS. Believe it or not, it only takes one late payment after bankruptcy for your chances at a mortgage to completely vanish.

I suggest you speak with a Loan Officer around 1 1/2 years after your bankruptcy was discharge so that they can review all your documents and credit and make sure you're in a position to purchase when the 2 year anniversary arrives.

Feel free to call me with ANY questions at any moment. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Sat Aug 17, 2013
There are restrictions for a time frame of when you can purchase a home after a bankruptcy. You will need to contact a local lender and discuss your options.

Tammy Hayes, Realtor
Re/Max Palm Realty
0 votes Thank Flag Link Sat Aug 17, 2013
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