Mortgage Part Of Bankruptcy

Many consumers who file bankruptcy have their mortgage part of bankruptcy because they could no longer afford their monthly housing payment or because they cannot liquidate and sell their home because their mortgage balance is higher than the value of their home.  Those who include their mortgage part of bankruptcy need to realize that there are waiting periods after bankruptcy and foreclosure in order to qualify for a home loan.  The waiting period after bankruptcy and foreclosure depends on the type of loan program the home buyer qualifies for.

Waiting Period After Foreclosure And Bankruptcy For FHA Loans

FHA Loans has a two year mandatory waiting period after the discharge date of a Chapter 7 Bankruptcy in order to qualify for a mortgage home loan.  A consumer who has filed a Chapter 13 Bankruptcy can qualify for a FHA Loan one year into the Chapter 13 Bankruptcy with the approval of the Bankruptcy Trustee and as long as they have made their payments on time since the start of the Chapter 13 Bankruptcy re-payment plan.

There is a three year waiting period after the recorded date of a foreclosure or the recorded date of a deed in lieu of foreclosure to qualify for a FHA insured home loan.  There is a three year waiting period after the date of a short sale to qualify for a FHA Loan.  The waiting period after a short sale starts from the date of the HUD Settlement Statement of the short sale date.

Mortgage Part Of Bankruptcy For FHA Loans

If you have a mortgage part of bankruptcy, the waiting period starts two years from the discharge date of the bankruptcy or after three years of the recorded date of the foreclosure after the bankruptcy discharge date, or whichever date is later to qualify for a FHA Loan.  For example, if you have mortgage part of bankruptcy in January 2010 but the mortgage was not foreclosed on and recorded until January 2014, the three year waiting period will start on the recorded date of January 2014 of the foreclosure. You will not qualify for a FHA Home Loan until January 2017.

Waiting Period After Bankruptcy And Foreclosure On Conventional Loans

There is a four year waiting period after bankruptcy, deed in lieu of foreclosure, and short sale to qualify for a conventional loan.  The 4 year waiting period after bankruptcy starts from the discharge date of the bankruptcy.  The 4 year waiting period after a deed in lieu of foreclosure does not start until the recorded date of the deed in lieu of foreclosure which is reflected on public records.  The four year waiting period after short sale to qualify for conventional loan starts from the date of the short sale which is reflected on the HUD Settlement Statement.

Mortgage Part Of Bankruptcy: Conventional Loans

If you have a mortgage part of bankruptcy, you can qualify for a conventional loan four years after the discharge date of bankruptcy as long as you surrendered your home in the bankruptcy.  The foreclosure can be recorded on public records at a later date after the date of bankruptcy but the waiting period clock starts from the discharge date of the bankruptcy.

Waiting Period After Chapter 13 Bankruptcy: Conventional Loans

If you have Chapter 13 Bankruptcy, you can qualify for a conventional loan two years after the discharged date of the Chapter 13 Bankruptcy.  If your Chapter 13 Bankrutpcy was dismissed, there is a four year waiting period after the Chapter 13 Bankruptcy dismissal date.

 

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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