QUESTION
How soon after we walk away from a mortgage that was not reaffirmed in Chapter 7 can we qualify for another mortgage?
Asked on Sep 18th, 2012 on Bankruptcy - Florida
More details to this question:
Our Chapter 7 Bankruptcy was discharged in January 2010. We did not reaffirm the mortgage on our townhouse but continued to make payments. We want to get out of our town house, which is underwater and buy a new single family house. Two lenders have turned us down because we still have the townhouse, even though we told them we plan to rent it out. We also now know that we can stop making payments on the townhouse, save our money towards another home, and let the townhouse go to foreclosure. How long will we have to wait before we can qualify for another loan? Will the foreclosure show up on our credit report?
6 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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At least three years for the bankruptcy or the foreclosure.
Answered on Jun 27th, 2013 at 10:14 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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The foreclosure will show up on your record. It is up to the mortgage company if they will lend you money. Try a short sale, that may help you.
Answered on Sep 27th, 2012 at 11:20 PM
Yes the foreclosure will show up on your credit report and how long you will have to wait to get another mortgage will depend on how hard you work to find financing. The reason I say that, is that the decision to lend to you is up to the lender.
Answered on Sep 20th, 2012 at 3:49 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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There is no answer to this question that will be adequate for you. Getting a home depends upon requirements of the lenders you apply to. The debt has been discharged, you do not owe it. The mortgage will show up on your credit report as being discharged.
Answered on Sep 20th, 2012 at 3:47 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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The foreclosure will show up, only because it is a lien on the property. You can try qualifying anytime, but suggest that you wait a year.
Answered on Sep 20th, 2012 at 3:47 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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I believe that the guideline period for many lenders would be four years. The foreclosure will be on your credit report for seven years. My sense is that a foreclosure two years after your Chapter 7 would be looked at negatively by many credit grantors (more so than a foreclosure coupled with a bankruptcy). You should meet with a money management professional to determine a long-term strategy before you embark on the strategy that you currently have.
Answered on Sep 20th, 2012 at 3:47 PM