Can i get a Loan?

Asked by Mac2ug, Cartersville, GA Tue Feb 26, 2013

We had a chapter 7 in discharged in July 2009. Home was included in it. But Bank didnt take the house till June of 2011. House set empty till then as we moved shortly after discharge of chapter 7. Credit scores are well above the FHA 640 range income is good

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Dawn Heisler, Agent, Cartersville, GA
Tue Feb 26, 2013
Hi! I believe that even though the bank didn't take the house until June of 2011 that at this time you can get a loan. However, the best way to know for certain is to speak with a good lender. The lenders I refer are like me, hard working, people who return calls, and really care about their clients. You wouldn't even need to see them in person at first. You can get pre-approved over the phone. With interest rates as good as they are right now, it is worth a shot. If not, they can at least tell you when you will be ready. So call me and I will be glad to send you my preferred lender list.

Thanks for the question!

Dawn Heisler, Realtor/Associate Broker
Homestead Properties, Ltd.
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Feb 26, 2013
No, it would be at least Juluy 2014. FHA mortgages are the least restrictive for a previous bankruptcy. HUD 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.

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.

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 get Pre-Qualified for your purchase, you can submit your request online at

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

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes
Christie McS…, Agent, Cartersville, GA
Tue Feb 26, 2013
In my experience in dealing with a few different lenders, you may receive an FHA-insured mortgage, if at least 2 years have elapsed since the date of discharge of the bankrupcy and the borrower has since reetablished good credit. As far as, Foreclosure, typically you would be eligible to receive an FHA-insured mortgage 3 years after the Foreclosure Deed was filed by the bank as long as good credit has been reestablished. Of course, these are just general guidelines that most Lenders use it would still be a good idea to consult with a Mortgage Lender to find out their specific guidelines.
0 votes
I worked with a client with a similar situation and the Lender said both time frames were of importance and like you, they had filed Bankrupcy first and then the Foreclosure happened later. They had to wait for the 3 years to be up before they could qualify.
Flag Tue Feb 26, 2013
i guess the biggest think i don't understand is which takes precedence the bakruptcy or the Foreclosure. Banrrucpy is almost 4 years old and we had no intention of keeping the home. Why we moved on right after discharge but BOA dragged thier feet and home set empty till it was foreclosed on on June of 2011. So i still have to wait 3 years from 2011 ? even with down payment money and credit in the 680 to 700 Range ??
Flag Tue Feb 26, 2013
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