In general, in the situation where you've had a BK & a mortgage was included, when you apply for new mortgage financing the underwriter is going to review the BK paperwork and see the mortgage was included. The underwriter is going to ask what happened to that property and you are going to have to provide some final disposition paperwork on it (i.e. a foreclosure deed, or a letter from the mortgage lender stating when they foreclosed on it) as well as write a letter of explanation.
I don't quite understand the situation though - you said you were to surrender the home. You mean do a deed in lieu of foreclosure? If so, what happened to you doing the deed in lieu of foreclosure? If the lender was supposed to take the property back without you doing a deed in lieu, then that would just be a normal foreclosure. Feel free to hit the "answer question" button and respond to your own question with more details rather than hitting "reply" under my answer, otherwise I won't get notified that you have responded. You can also contact me directly if you'd like.
Shane Milne | Lending in all 50 states | NMLS #81195... more
You'll need to get pre-approved. A pre-approval is a more thorough process than a pre-qualification because it involves a more thorough overview of your finances. I recommend speaking with a major, national, direct lender, like Bank of America, Wells Fargos, etc. When making an offer on a home you'll likely be competing with other bidders and you'll have to demonstrate strength based on your downpayment and ability to get a loan - and therefore actually purcahse the property.
During the escrow process you wire your downpayment funds to the seller via escrow and your lender wires their funds.
You can get pre-approved for a certain amount, but you don't have to borrow that amount, thats just the maximum that the bank will lend to you.
I can recommend you to a lender who will give you a great rate and terms, and I can help guide you through the whole process.
Keller Williams Realty