This BLOG On Mortgage With Late Payments After Bankruptcy And Foreclosure Was UPDATED And PUBLISHED On October 16th, 2019
Borrowers with outstanding collections, charged off accounts, and late payments can qualify for home loans.
- Borrowers do not have to pay outstanding collections and charged off accounts to qualify for home loans
- Lenders will require 12 months timely payments
- Automated Underwriting System will only approve borrowers with timely payments in the past 12 months
- It is possible to get an approve/eligible per Automated Underwriting System Findings with one or two late payments in the past 12 months
- However, qualifying for Mortgage With Late Payments After Bankruptcy and/or Housing Event is a totally different story
- It is not impossible to get an approve/eligible per Automated Underwriting System with late payments after bankruptcy and/or foreclosure
- However, most lenders will not want to approve any borrowers with late payments after bankruptcy and/or foreclosure even with AUS approval due to their overlays
- Gustan Cho Associates represent a direct national lender with no overlays on government and conventional loans
We can approve and fund loans with late payments after bankruptcy and/or foreclosure with an automated underwriting system approval.
Qualifying For Mortgage After Bankruptcy And Foreclosure
A Chapter 7 Bankruptcy is a federal debt relief law that a consumer can use to wipe out all or most of their debts and have a fresh start on their financial life.
- Debts such as credit card debts, judgments, installment loans, personal debts, and other non-government debts can discharged through a Chapter 7 Bankruptcy
Debts That Cannot Be Discharged In Bankruptcy
There are certain debts that cannot be discharged through a Chapter 7 Bankruptcy such as the following:
- student loans
- government loans
- child support payments
- tax debts
- tax liensOnce a debt from a creditor is discharged through a bankruptcy, the consumer no longer owes the debt
- They are no longer responsible to pay that debt
- All unsatisfied judgments also gets discharged
- Consumers do not have to worry about getting any future collection activities from the judgment creditor such as wage garnishments, bank levy, or having liens placed on their assets
- Home buyers can qualify for Mortgage With Late Payments After Bankruptcy and foreclosure after meeting the waiting period requirements
- However, late payments after bankruptcy and foreclosure is often frowned upon all lenders
Late payments after bankruptcy can be deal killers in getting qualified for home loans after bankruptcy.
Qualifying For Home Loan After Bankruptcy
People can definitely get a home loan after bankruptcy and the majority of folks who filed bankruptcy eventually have become homeowners in as little as two years from their bankruptcy discharged date with FHA and VA Home Loans:
- One of the major issues where getting a home loan after bankruptcy becomes a major issue is if borrowers had late payments after bankruptcy
- It is possible to qualify for Mortgage With Late Payments After Bankruptcy and Foreclosure
Most mortgage companies will disqualify applicants who had late payments after bankruptcy and foreclosure as well as those with late payments after short sale.
Late Payments After Bankruptcy And Housing Events Are Not Deal Killers
Lenders are more than happy to lend on borrowers with prior bankruptcies but not late payments after bankruptcy and/or housing events.
- Lenders do expect that they do not have no late payments after bankruptcy
- Lenders want to see re-established credit after bankruptcy and foreclosure and steady employment
- Just because borrowers have good credit scores after bankruptcy and foreclosure does not meet the credit criteria
Credit history and payment history after bankruptcy and foreclosure will carefully be analyzed and reviewed as well.
Denied For Mortgage With Late Payments After Bankruptcy And Foreclosure
I have many calls from borrowers who are told by lenders that they do not qualify for a home loan and will never qualify for a home loan because they had late payments after bankruptcy and foreclosure. Many lenders will not budge on this rule. They will automatically disqualify borrowers who had late payments after bankruptcy and foreclosure. However, there are solutions to overcome this major issue. I have helped countless of borrowers with late payments after bankruptcy and foreclosure. If told that you do not qualify for a mortgage due to late payments after Bankruptcy and Foreclosure, please contact us at Gustan Cho Associates at 262-716-8151 or txt us for faster response. Or email me at firstname.lastname@example.org so I review overall credit profile and see if we can come up with a solution that will fit and suit credit profile and implement them so we can qualify for a home loan.