Declaring Bankrupt, Can we still buy?? My Husband is going to file for 'bankrupt'. Can he attempt to buy a home once his process is done?

Asked by Martha G., Orange, CA Sat Nov 17, 2012

My Husband is going to file for 'bankrupt'. Can he attempt to buy a home once his process is done? Or is it a necessity to build credit?? He's supporting the family, and I'm a stay at home mom.

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Ronald Accor…, Agent, Orange, CA
Sat Nov 17, 2012
He will be able to buy again after 7 years, but even then he will not get the best rates available.
If you have the option of a short sale it is much better. You can buy after two year or three FHA.
If you can avoid bankrupty it is going to be better for you. It is not the answer to all things. There are companies that will arrange delay payment of your bills and is a much better option.
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Mahesh Patel, Agent, Anaheim Hills, CA
Sat Nov 17, 2012
Yes you will be able to buy, it is just a matter of time. But you will have to wait!
Each situation is unique.
Consult an attorney/Realtor/Lender to get a head start to buy.
Mike Patel
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Ingrid Ski R…, Agent, Mission Viejo, CA
Sat Nov 17, 2012
Hi Martha

Yes and Yes. Some lenders can help in getting you a loan and some lenders may have you wait to re establish your credit. There are a few questions about your circumstances to find out. Talk to you soon

Ingrid Ski Realtor
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Tim Moore, Agent, Kitty Hawk, NC
Sat Nov 17, 2012
Of course you can buy a home, the problem is getting a loan. If you can pay cash you can buy, but I doubt that a lender will give you a loan for sometime.

Good luck
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Suzanne MacD…, Agent, Morristown, NJ
Sat Nov 17, 2012
He will not be able to buy a home for a period of time and, yes, you will need to take measures to rebuild your credit afterward. The time frame is different depending on whether you file for Chapter 13 or Chapter 7. You need to talk to a lawyer and/or a mortgage professional to make sure what the time frames are. I believe, if you file for Chapter 13, restructuring your debt, you may be able to get an FHA loan after a year or two of making regular payments to the trustee. However, with Chapter 7, (and again, please check this with an attorney and a mortgage professional) the wait time is 3 years. During that time you need to also re-build your credit. The easiest way to do that is with secured credit cards and/or automobile loans. Basically, you will open a Certificate of Deposit with a bank for an agreed upon dollar amount, then they will issue you a credit card with a line of credit using the CD as security. Once you have established a pattern of regular, on time payments, they will release the CD back to you to do with as you wish. The CD will, I believe, accrue interest during this time. You will need 3 lines of credit, so three credit cards or two credit cards and an automobile loan. Expect to pay a higher interest rate but it is the best way to rebuild your credit.

Good Luck! Don't feel badly, an awful lot of Americans are in the same shoes these days, you will come out of this fine and be better for it.
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