QUESTION
Can I get a mortage a year after my bankrupcy has been on my credit if I can prove hardship?
Asked on Jul 26th, 2012 on Bankruptcy - New Jersey
More details to this question:
When I transferred I had two house payments couldn't afford both so I had to give up the house, this took place in Michigan and since bankrupcy I established credit and have a down payment.
19 ANSWERS
It is best to wait about two years during which you save for a down payment and rebuild your credit. Then check with lenders regarding the interest rates available to you. When you are able to get a mortgage with payments you can afford, it's time to buy again. Just be careful of creative financing. You want a fixed rate mortgage and no baloon payments.
Answered on Aug 07th, 2012 at 10:13 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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Every lender is different so you will need to check with a few and see what their post-bankruptcy guidelines are. In this current market most of the major lenders are requiring that you be discharged from bankruptcy for at least 24 months.
Answered on Aug 07th, 2012 at 1:23 PM
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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Proving hardship has nothing to do with your question. The issue you are asking about is whether a mortgage lender will approve you for a loan. You should contact the mortgage lender and discuss your situation with them and they will probably have you fill out a mortgage application and let you know if you qualify.
Answered on Aug 07th, 2012 at 12:55 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Perhaps with difficulty. It is up to the lender and their policies.
Answered on Aug 03rd, 2012 at 3:17 PM
William C. Gosnell
No you must wait two years.
Answered on Aug 03rd, 2012 at 11:25 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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You should consult with a mortgage broker. Probably very tough after only one year.
Answered on Aug 01st, 2012 at 8:47 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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This question is best answered by your lender.
Answered on Aug 01st, 2012 at 8:40 PM
Make your application and see what they say. You can also apply with more than one lender. Each company has its own underwriting criteria.
Answered on Aug 01st, 2012 at 7:51 PM
Bankruptcy Attorney serving Turnersville, NJ
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Law Office of Joseph J. Rogers
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It is unlikely that you credit will be good enough one year after bankruptcy to qualify for a mortgage. Hardship would not be relevant, the mortgage company is going to look at your employment history, credit score and down payment.
Answered on Aug 01st, 2012 at 5:44 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You do not have to prove hardship to get a mortgage. Indeed, the opposite is required. It depends upon the lending practices of the banks you apply to.
Answered on Aug 01st, 2012 at 5:19 PM
You don't understand how mortgages work. Mortgage loans come from private companies that are profit oriented. "Hardship" is not a factor - not supposed to be in todays world, anyway. That's because when hardship becomes a factor, risk goes way up, and excessive risk is adverse to profits. So, just work on establishing credit again by small credit purchases. You probably won't even minimally qualify for a mortgage loan for four or more years after the bankruptcy. But, realistically, no one in Florida is getting loans anyhow. I have physicians with perfect credit scores who are loaded with money and in order for them to borrow money they have to put 30% to 50% down. So "credit" really doesn't mean anything anymore - it mostly doesn't exist for the majority of Floridians.
Answered on Aug 01st, 2012 at 4:16 PM
Bankruptcy Attorney serving Oakdale, CA
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Law Office of Todd Whiteley
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There is no *requirement* on lenders to extend an offer for a home loan to anyone, period. So whether one year or three years passes after discharge - the lender may or may not offer a mortgage loan to a discharged debtor. I imagine that proof of having overcome a financial "hardship" will work in favor of receiving the loan, but it will not guarantee it.
Answered on Aug 01st, 2012 at 3:30 PM
Proving hardship is never a credit concern. When you are trying to borrow money, you need to prove that you can pay back. Talking about your hardship is hardly a good plan. That said, your question is more of a credit issue than a bankruptcy question. My understanding is that you can get a home loan insured by the FHA 2 years after your discharge, assuming you meet all the other underwriting criteria, meaning that you are otherwise qualified by having the down payment and enough income to make the payments. If you have found the home of your dreams and can't wait, the worst that can happen is that the bank will say "no". Before you buy something, though, make sure you can afford to make the payments and that your plan does not involve any magic (like, don't worry, you can just re-finance before the rates go up). Fool me once, shame on you. Fool me twice, shame on me.
Answered on Aug 01st, 2012 at 2:46 PM
Meredith P. Ezzell
The decision whether to lend is with the bank and pursuant to their underwriting requirements, so you would need to inquire with the intended lender.
Answered on Aug 01st, 2012 at 2:24 PM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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It's possible depending on work stability, income, loan type and amount of down payment.
Answered on Aug 01st, 2012 at 2:22 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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That is a question for a mortgage broker. If it was a chapter 7 and is over they are the only people to be involved. If it is a chapter 13 you still would have to get permission from the bankruptcy court.
Answered on Aug 01st, 2012 at 2:15 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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It is possible to obtain a mortgage after filing for bankruptcy. However, you will need to shop around a lot and find a bank or a mortgage broker that is willing to work with you despite your credit history. You may also have to accept a higher rate or provide a larger down payment than someone without a prior bankruptcy.
Answered on Aug 01st, 2012 at 2:14 PM
It entirely depends on the bank.
Answered on Aug 01st, 2012 at 2:14 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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There is no law saying you can not. You will probably be charged a high rate of interest, but there is no law against you obtaining a mortgage after filing for bankruptcy.
Answered on Jul 27th, 2012 at 3:19 PM