can i possibly buy a house this year after bankcruptcy discharge and foreclosure 10 months ago.?

Asked by Jaja, 77373 Sun Aug 23, 2009

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John Axt, , Spring, TX
Wed Mar 24, 2010
I need to mention that a foreclosure will stay on a credit report for 7 years, it does not preclude a person from buying after 3 years. This presumes you are once again credit worthy.
0 votes
Ronda Allen, Agent, Plano, TX
Wed Mar 24, 2010
Seller financing or cash offer are likely the only ways you can go with such a recent incident. But, seller financing isn't always at attractive interest rates.

I suggest you look for a home to lease for a few years. A similarly distressed homeowner who doesn't want to walk in your shoes may lease you their home for 2-3 years while they get their own finances back in order.

Good luck to you.
0 votes
John Axt, , Spring, TX
Wed Mar 24, 2010
There are several issues to consider in answering this question. First, was the home foreclosed before or after the Bankruptcy? Second, was the loan on the home a VA or FHA loan? Third, was there any federally backed loans that were discharged in the bankruptcy, FHA, VA, school loans, SBA etc.? Normally, you can buy a home three years after a bankruptcy discharged date as long as there are no additional credit negatives such as late payments. If you had a federally back loan, the three years runs from when the government agency finally released the debt. The lender has to run a CAIVRS report which will disclose all of this. Ask for them to do it early in the process as it is normally done late.
Web Reference:  http://www.johnaxt.com
0 votes
Jenny A. Le, , California
Sun Aug 23, 2009
If you buy with cash, yes. You likely won’t be able to apply for new credit until your credit history has some time to recover.

A foreclosure is a negative and it stays on the credit reports for 7 years; bankruptcy 10 years.

I suggest you to contact a local non-profit credit counseling organization to devise a plan with you so you can begin to take steps to rehabilitate your credit history so that in months, more likely years, down the road you can obtain the credit you want.
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