i have been in bankruptcy for two years going on three now. I am in a position to want to purchase a home. Im not sure if i have a shot due to the

Asked by Shawntelli96, Shawnee, KS Wed Jan 20, 2010

economy and my bankruptcy status. I also would be a first time home buyer. Im not sure what steps to take first in purchasing a home. Is there any advice you can give me in applying for a mortgage while in bankruptcy?

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Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Wed Jan 20, 2010
Hi, Shawntelli96

If your filed Chapter 7, and are now 2 years out of the date of your discharge, you're now eligible for loan consideration.

If its a Chapter 13, ( and it sounds like it) then you'll need a 12 month history of on-time repayments and the approval of the court to be considered. You'll aslo need to do a LOX (leter of explanation) detailing the reason for your bankruptcy and whats taken place since then to better insure you against it happening it again.

Loss of job, cut in pay, medical issues, divorce, are all acceptable reasons to an underwriting for a bankruptcy. You'll also may need to provide corroborating documention (especially in case of divorce) if requested.

Finally, remember your credit score will also be taken into major consideration. Most lenders now require 640 or better. Especially if you're still in the midst of a Chapter 13. Hope this helps, and good luck.

Rudy R. McDowell / Senior Loan Officer
NMLS#: 141856
770 S Adams Birmingham, MI. 48009
o: 800-678-6663 Ext 5154 / f:248-594-6156 /d: 313-410-1344
email: rmcdowell@shoremortgage.com
corp: http://www.shoremortgage.com
"Referrals are the Best Indicators of My Service and Your Satisfaction"
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Hannah Angert, Agent, PHILADELPHIA, PA
Wed Jan 20, 2010

To the best of my knowledge, because of your bankruptcy status, you would not be considered for a loan from any primary or secondary lender that I know of. Plan to give the bankruptcy at least 7 years to clear.


Hannah Angert, Realtor
PA License RS-295442

215. 271. 3000 office
215. 271. 0988 fax
215. 869. 9571 cell

William Festa Realty
3001 S. Sydenham St.
Philadelphia, PA 19145
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