Can I Buy Again? After a Bankruptcy? When?
Mike's blog contains a very valuable chart, which lists by loan type the waiting peroid for those x-homeowners, who for whatever reason lost their home and wish to return to being a homeowner. It is a great reference tool. Mike is correct "when can I qualify for a mortgage again?" is a very common question these days.
Can I Buy Again? After a Bankruptcy? When?
Can I Buy Again? After a Bankruptcy? When?
I have received this question so many times lately that I've decided to answer it here as well. Having been the real estate for over 20 years now, I understand the passion that many of us have for homeownership. In our recent history here in San Diego County, we've experienced a large number of bankruptcies, foreclosures and short sales. I have personally worked with dozens of homeowners after they have either filed for bankruptcy, had a property foreclosed on or have closed a short sale. You cannot help but see in their eyes the desire and passion that they have to own a home again. Because of that passion that these homeowners have I felt it was important to bring this information to them and to you. Owning a home is supposed to be the American dream. Unfortunately, it has been more like well, let's just say less than a dream for many. With recent economic reports coming out and many of them pointing to positive economic growth, the housing sector in the United States and specifically here in San Diego County will eventually pick back up. Meaning, that demand will increase and at some point should either equal or exceed inventory, thus putting upward pressure on housing prices. This is were the real opportunity of the American dream comes in the play.
Believe it or not, you'll see this below, it is easier today to qualify to buy a home again after a bankruptcy that it has been in quite some time. Because FHA is such a large part of the financing of real estate today and because they have eased their guidelines recently, it is simply easier to buy today after a bankruptcy. As you will note below, with FHA financing, you can qualify for a new home loan in just 12 months after the beginning of a chapter 13 bankruptcy. With chapter 7 it actually takes three years, but with extenuating circumstances or those that are beyond your control that timeframe can be reduced, sometimes significantly.
You will need to consult with your home loan professional for the specifics because everybody's case is different. If you don't have, or don't prefer to consult with your home loan professional we can certainly give you the contact information for a number of home loan professionals in our area.
I have made it my mission to promote homeownership. I understand the joys and the challenges that come with owning a home. And I truly do believe that owning your own home is still and will be again be the American dream.
As always, thanks for listening.
Mike Litton FSP, CDPE, PSC, SFR
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Keller Williams Realty North County San Diego
760-802-9500
DRE License #01129886
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