If you filed BK7, you will have to wait a total of 3 years. This means 3 years from the time the HUD file is closed in their department and they sign off on it; at this your 3 years begins. Let me explain; most sellers that file BK7 are told they have to wait 3 years so everyone assumes itsâ€™ from the time the lender transfers the title into the new buyers name which is INCORRECT! Even if you manage to sell your home before HUD takes control of your house and sells it, the file still needs to be signed off by HUD. This is why it is so important even when you file BK7 to get Realtor like myself who understands the rules and regulations for a seller who would like to buy a home as soon as possible and rebuild their credit to help the seller sell home ASAP.
Now if you have a special circumstance such as a death or act of god such as a hurricane destroying your house and losing your job at the same time FHA may let you purchase a house in less than one year. However, this is a case-by-case basis and you will have to provide all types of documentation to prove this event. These rules do not apply to investors and/or a seller who ones a second home. This rule only applies to a homeowner who own one home and this is their primary residence. In addition, if you file BK13 you can purchase in less than 1 year; but make understand the BK13 trustee must approve you, (you need their approval in writing) and you should go through your BK13 attorney to ensure that all is done correctly. This does not mean you are guaranteed to purchase another FHA house this way. It simple means that you may be able to but again there are many factors that a lender will look at such as your debt to income ratio â€“ this is huge for a buyer wanting to purchase FHA coming out or still in a BK13. If your currently in a BK13 and own a house that has a FHA loan and want to sell and purchase your house â€“ it is critical to contact your attorney immediately; because all states have different rules and regulations in regards to BK7 & BK13.
Again, make sure you are working with a Realtor who understands BK7 &13, Foreclosures, lender laws, and more importantly has the experience in short sale. I have not seen a lender yet allow a BK13 sale and purchase a home while in BK13. Here is why- you have issues with control or paying on your debt whether your fault or not so why would the Federal government allow you to sell and purchase through BK13 when this was arranged for you to rebuild your credit and get out of debt. Now let us go back to FHA backed HUD loans. Remember I stated you have to wait until HUD signs off on the file. Not many clients have ever heard of a CAIVRS number except lenders. Please note that each lender must comply with the FHA national standards but each lender can impose and add their own items like wait times before purchasing after bankruptcy such as 15-45 days.
A CAIVRS number is like your social security number; this is how the government tracks all loans connected to your social security number. When HUD is done with the file and signs off on the file, they update this CAIVRS number. CAIVRS stands for (Credit Alert Interactive Voice Response System) this was created by HUD (Department of Housing and Urban Development) every FHA loan is backed by HUD. Also, so that you know the CAIVRS is used by FHA, HUD, VA, Department of Education, GI mortgages, USDA (Rural Housing Admin.) and SBA (Small Business Admin) this why it is so important to work with an experienced realtor, attorney who specializes in BK, an lastly and lender who has the experience in all the above stated information. You can ask a lender to look up your CAIVRS number so you know how long you have to wait. I hope this helps- do not give up keep plugging away ...................