FHA and BANKRUPTCY
Recently, one of my clients were initially given the ok to purchase a home as they were out of bankruptcy for 2 years, credit was great and they had a good paying job. When the paperwork was filled out they had rolled their "foreclosure" into the banruptcy agreement and did not realize that it would still appear on their records. So when they asked if they ever had a foreclosure, they answered "NO" and it was initally missed by mortgage broker. THEY THOUGHT IT WAS "NO" as they were told by their bankruptcy lawyer it was part of the bankruptcy package. They were told to do this as they were moving out of State and the Real Estate market was slow.
Remember..... If it doesnt sound or feel right, take a second look. Get another opinion.
Can imagine how excited the couple was to be able to now look for a home. This lasted about a week until it appeared to theie new ender that this bankruptcy included a foreclosure. They could not now proceed to look at homes until this was at least 3 years out.
Most would agree that 3 years is short time to qualify for a loan and they should feel lucky to not have to wait 7 years or more.
When filling for Bankruptcy, Short Sale or Foreclosure, is so important that you know exactly what you are getting into. So often people are not educated and do not realize the future impact. Before making any decisions make sure you do your homework.
KNOWLEDGE IS POWER