August 5th will be my 2 year time frame after our discharged bankruptcy. I would like to secure a loan now, is that possible?

Asked by Gina, Flagstaff, AZ Mon Apr 16, 2012

Oh, it was a BK 7. I've heard so many conflicting stories from mortgage brokers and my credit union? Our fico scores are high 600's-low 700. Maybe a private investor? Any advice would be greatly appreciated!

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Flagstaffhomedeals’ answer
Flagstaffhom…, Both Buyer And Seller, Flagstaff, AZ
Sat May 26, 2012
Hello Gina,
I am a local Investor. If you find that you are unable to get Conventional Financing, I can help. We offer Seller Financed Homes. Visit my website or call and let me know what you are looking for. Cindy
1 vote
Hello Cindy - what is your web address please?
Thank you!
Flag Sat May 26, 2012
Joycelewis412, Home Buyer, Sacramento, CA
Sun Aug 11, 2013
There is a site that will help you determine if you can qualify for a refinance after short sale, foreclosure, or filing bankruptcy. Check out
0 votes
Kathy2012, Home Owner, Flagstaff, AZ
Sat Aug 4, 2012
Hi Gina,
Don't be afraid to start looking, I did. I came out of bankruptcy in Oct. 2010 and had my realtor friend looking for homes, i got involved with Bothands and thier credit counseling and found a lender who worked with me when it came time to make an offer on a house. I made several offers on places and always got outbid. i had a mid 600 credit score and was able to secure an fha loan with my lenders help and Bothands. Check them out, Bothands is in flagstaff and my lender was Wallick and Volk. Go house hunting. You never know what will land in your lap. I have my house now and once the short sale was completed from start to finish was about 3 months. Good Luck
0 votes
Georgina Dal…, Agent, Scottsdale, AZ
Mon Apr 30, 2012
Hi Gina,

Looks like everyone agrees that with the limited info that has been discussed you could be ready to buy. I know the Flagstaff market well so if you would like to start looking let me know I am ready when you are. Make it a great day.

0 votes
, ,
Tue Apr 24, 2012
I am with Denny, there is NO ambiguity, there is only inexperienced people out there who shouldn't be giving borrowers advise at all. At it's core the FHA 4155 Handbook is only a guide for an Underwriter, but it is very clear on several topics one of them being BKs. There are only two types of BKs for individuals, Chapter 7 and 13. Chapter 11 is generally for Corporations. As stated below by Denny to FHA, individuals who filed Chapter 7 BK have two possibilities, either 2 years waiting period or 1 years under EXTREME circumstances, like death in the immediately family, serious illness, etc. Chapter 13 is different, the court can give a person up to 36 months to pay back the debts established by the judge, but a individual can qualify for a home loan after just one year of on time payments or they of course can payoff the entire amount prior to the first year. So that my be where all the confusion lies. So getting back to your question, the answer is unless you had extreme circumstances that led to your BK, you can start the process, but we can't close your loan until that 24 month line in the sand. If you are that gung ho about starting the process just make sure you do your vetting for a Loan Officer during these months before August. Make sure you have all your ducks in row so you don't get any surprises. This is my recommendation.

Best of Luck!
Web Reference:
0 votes
Gregorio Den…, , San Diego, CA
Tue Apr 24, 2012
There should not be any conflicting stories; FHA is very clear on this.

"A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower must have
- re-established good credit, or
- chosen not to incur new credit obligations.

An elapsed period of less than two years, but not less than 12 months, may be acceptable for an FHA-insured mortgage, if the borrower
- can show that the bankruptcy was caused by extenuating circumstances beyond his/her control, and
- has since exhibited a documented ability to manage his/her financial affairs in a responsible manner."
Web Reference:  http://HarpSupport.Com
0 votes
Georgina Dal…, Agent, Scottsdale, AZ
Mon Apr 23, 2012
I agree that now is a good time to speak with a qualified mortgage broker as 2 years is the correct time frame for FHA or VA loans but you may need to get you FICO score up just a bit?. Call or email me for an excellent local mortgage lender in Flagstaff and they can let you know really quickly what you qualify for within minutes. Either way you could be back in your own home while prices are unbelievably low before end of year.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Apr 16, 2012
Speak to a local lender. One with your current bank would be a good place to start since they know you or your account.
0 votes
I did speak with my credit union they said 2 years after BK7 and must have 20% down. Way too much for me right after a BK. However, 10% could be done.
Flag Mon Apr 16, 2012
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