Buying a House After a Bankruptcy

By
Mortgage and Lending with The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. NMLS #241555

Can someone get a mortgage after a bankruptcy? Yes they can! And they only have to wait 2 years from the date that the bankruptcy was discharged.

The most important thing is that they "re-establish credit" after the bankruptcy. That means no late payments of any kind (including collection accounts) for the 12 months preceding the loan application date.

What are the down payment requirements for people with bankruptcies? They are that same as they are for anyone else: just 3.5% of the purchase price for FHA loans.

What are the interest rates for people with bankruptcies? They are the same as they are for anyone else.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!


Make sure you check out our web site:
www.mtgsupportservices.com

And check out our blog to see all our great tips:

http://TheMortgageExperts.blogspot.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Richie Alan Naggar 05/11/2012 02:00 AM
  2. Kim Carlson 480-993-9384 05/11/2012 05:06 AM
Topic:
Real Estate Best Practices
Location:
Colorado
Groups:
Active Rain Newbies
RealtorsĀ®
Colorado Real Estate
Colorado Realty Bloggers
Tags:
bankruptcy
mortgage tips

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Rainmaker
768,416
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal RealtorĀ®

Most do not know that they havethe ability to purchase after only 2 years. Same in Short Sales. BUT, as you have stated good payment history after the bankruptcy is imperative

May 11, 2012 12:26 AM #1
Ambassador
779,617
Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

After the "Great Recession" many Americans do need a second chance. Thanks for sharing!

 

May 11, 2012 12:28 AM #2
Rainmaker
1,138,128
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

The key is getting the credit in line over that two years. Some people forget about that.

May 11, 2012 12:32 AM #3
Rainmaker
1,180,860
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Chris, This is excellent information for anyone who is in or considering bankruptcy. Great tip and reminder that they need to have had to reestablish a good credit rating with no late payments. 

May 11, 2012 01:28 AM #4
Rainmaker
316,101
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

HI Chris, I am sure that there are many who have already had a bankruptcy and had wrong information. Now they know what to do.

May 11, 2012 01:41 AM #5
Rainer
181,841
Tatyana Makarov
Coldwell Banker Residential Brokerage - South Windsor, CT
Your Greater Hartford Area Realtor

this is a great info, Chris.

Some buyers don't really know what to expect after bankruptcy.

Have a great weekend.

May 11, 2012 03:23 AM #6
Ambassador
1,229,656
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I heard a speaker on credit recently who said that those who offer credit cards actually favor people with bankrupcy over people with bad credit.

May 11, 2012 03:43 AM #7
Rainmaker
1,833,528
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

The two year sit out rule is for FHA/VA ? Isn't Conventional- 2yrs for Chptr 13, 4yrs for Chptr. 7  ???

May 11, 2012 04:01 AM #8
Rainer
164,232
Kevin O'Rourke - Keller Williams Miami Beach Realtor
Keller Williams Miami Beach Realty - Miami Beach, FL
CDPE Miami Short Sale Agent 305-520-9436
Good to know! I am stunned by Melissa's, #7's remark. But I guess it means that those who file for Bankruptcy are proving to be a better risk than people who have not hit bottom yet. Amazing.
May 11, 2012 12:32 PM #9
Ambassador
2,008,627
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Chris - This is important information as so many people believe that it will be very difficult to buy after a bankruptcy.

May 11, 2012 03:33 PM #10
Ambassador
1,241,201
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

They HAVE to pay everything on time though. That is what usually kills it for them. 

May 11, 2012 10:22 PM #11
Rainmaker
537,522
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

Bear in mind too that a potential borrower who is 2 years out of BK and has a FICO score of 651 looks very different to an underwriter than a borrower 2 years out of BK with a FICO of 721.

Like with law, there are the actual laws and the application and interpretation of them.  Same with guidelines and each cash is different.  Indeed some borrowers emerge from BK, get a new start and make the most of it.  Others trend back into their old ways and I think it's fair that in those cases, underwriters decide appropriately.

Great post.  Thanks.

May 11, 2012 10:53 PM #12
Rainer
344,596
Charlie Dresen
Steamboat Sotheby's International Realty - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Great information. I would not have thought 2 years was the time frame. Thanks

May 12, 2012 01:03 AM #13
Rainmaker
1,060,712
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Chris, your post contains good information for those who have endured a bankruptcy.  I hope all the right people get to read this valuable piece.

May 12, 2012 08:19 AM #14
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