Home Buying in Copperas Cove>Question Details

Ditressed, Home Buyer in Killeen, TX

if you filed a chapter 13 bankruptcy in 2002 and paid every payment and it was discharged in 2007 would you have to put that on mortgage application

Asked by Ditressed, Killeen, TX Mon Jun 14, 2010

its not on credit report anymore

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3
Disclose, disclose, disclose. You are making application for a home loan. Follow the loan officer's instructions and provide all required documents and history. Don't wait until the file gets into Underwriting and they begin asking for data further back and discover that you have left out a piece of information. You have tons of company in the same financial boat in the last ten years. There's no shame in it, and there are a myriad of reasons for why bankruptcy occurs. Don't be afraid to tell your story and don't be surprised if the lender will make you a loan. You are three years away from the discharge. How you conducted yourself during the proceedings and since may show the lender what a solid candidate you really are. That bump in the road doesn't have to be a brick wall.
Have a blessed day!
Ronda
0 votes Thank Flag Link Wed Jun 16, 2010
As Lew stated below the loan application questioning is stated in such a way that you can answer no. Your credit report will most likely show the previous bankruptcy and because of this the lender will almost certainly request documentation to show that it is fully discharged.

It should in no way effect anything with your loan besides having to give the lender some additional documentation.
0 votes Thank Flag Link Wed Jun 16, 2010
The specific question on the mortgage application is "Have you filed for bankruptcy in the last 7 years?" If the answer is "yes", you would have to so indicate. If not (as in this case), then you can honestly say "no."

Bear in mind that bankruptcies can stay on your credit report for as long as 10 years. As such, if you apply for a mortgage, you will most likely have to provide copies of documents pertaining to the bankruptcy as well as an explanation about the circumstances surrounding the bankruptcy.
0 votes Thank Flag Link Mon Jun 14, 2010
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