How soon can we buy a house after a foreclosure & BK 13 that was dismissed after 1 mo of filing. Score is 709, VA eligible.

Asked by Lito, Eastlake Greens, Chula Vista, CA Wed Sep 28, 2011

BK 13 after modification failed & was advised by lawyer to stay in the house. 2 houses sold on short sale March/April 2010. Foreclosure was in March 2010. Good jobs. No consumer debt. Current score 709.

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6
Randall Yates, Other Pro, Dallas, TX
Sun Sep 15, 2013
12 months with the new HUD back to work program
1 vote
Danielle De…, Agent, Chula Vista, CA
Fri Sep 27, 2013
2 years. You should be ok if you have 0 late payments in the last 12 months, Let me know if you need a pre approval. I can take you out looking at homes in Chula Vista after you are approved any time. I have lived here for 25+ years. I can get you a real deal on a home here
0 votes
Maria Esparza, , Chula Vista, CA
Thu Sep 29, 2011
Hi Lito,
I prefer not to give you a direct answer. I'm an experience Realtor, so I believe in letting the professional in finances give you a more precised answer for you specific situation.
This is a good score. However, it does depends on the circumstances. I can refer you to a Lender who can also help you fix any pending debts. It's important to put yourself in the best buying situation.
Please contact me for more info.
Thank You
0 votes
, ,
Thu Sep 29, 2011
If the situation wasn't caused by extenuating circumstances, then with VA financing you could purchase 2 years after the foreclosure sale - so the anniversary in March of 2012. You'd want to wait until April of 2012 though as VA's automated underwriting system will not recognize the date of the foreclosure, only the month, so it reads the foreclosure as "3/2010" and so all of "3/2012" it will still think it happened less than 24 months ago, but on "4/2012" and afterwards it'll properly recognize it was 2 years ago and you will be able to get an "Automated underwriting approval" which will make you have an easier time through underwriting. I just recently helped a Veteran in the identical situation (had a foreclosure we were waiting on, no BK in the equation) buy a home last year, had to wait that following month in order for underwriting to go easier on us.

FHA financing would be 3 years after the foreclosure, Fannie/Freddie (conforming) financing would be 7.

Dismissed Ch 13 BK needs 2 years, so if it happened before/the same time as the foreclosure then it's seasoning would run concurrently to your foreclosure seasoning.

Shorter time frames would apply if the situation was caused by extenuating circumstances and could be documented.

Feel free to ask more questions, etc.
0 votes
Allison Gayn…, Other Pro, Chula Vista, CA
Thu Sep 29, 2011
I think you are asking the wrong question. What brought you to foreclosure and bankruptcy? We have become somewhat cavalier about these things, but they are still serious financial events.

The better question, in my humble opinion? What can you do to make your financial position as strong as possible? I would consider consulting a financial planner (or 2 or 3 to get a variety of opinions). And, I would take some financial workshops.

A great show to watch is "Til Debt Do U$ Part" on CNBC. The host of the show helps real people with serious financial problems to budget and reduce their debt.

Good luck to you. Take the right steps and you can eventually buy -- and keep -- a home. Meanwhile, there is no shame in renting. A lot more people are doing that these days.
0 votes
Maria Pena, Agent, San Diego, CA
Wed Sep 28, 2011
Every lender has its own guidelines therefore it will depend on your scenario. I have several lenders that can look at your file at no obligation. If you would like more information, please feel free contact me.
0 votes
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