- 310.376.9865
As a bankruptcy attorney, I am frequently asked if a person filing bankruptcy will be able to buy a house in the future.
Short answer YES.
“A Chapter 7 bankruptcy does not disqualify a borrower from obtain a FHA mortgage if at least 2 years have elapse from the date of discharge if the borrower:
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can show the bankruptcy was caused by extenuating circumstances beyond his control (lost of job, divorce, medical emergency).
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has since exhibited a documented ability to manage his financial affairs in a responsible manner. (You quit using credit cards to live on).
How about a Chapter 13 bankruptcy?
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one year of the pay-out under the bankruptcy has elapsed.
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the borrower’s payment performance has been satisfactory and on time, and
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you have written permission from the bankruptcy court.
OK, so far so good, how about a default on a previous FHA insured loan?
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at least 3 years have elapsed before he/she can regain eligible for another FHA insured loan.
Want to verify this claim? Google -“HUD 4155.1, Mortgage Credit Analysis for Mortgage Insurance” – There is some heavy lifting required – it is a 413 page read. If you are getting ready to buy a house, it would be worth your while time to wade through this document – to see what the lender is looking for, and you will be prepared.
DISCLAIMER: The content of this website is intended for informational purposes only. Nothing herein is intended to form the basis of an attorney-client relationship or constitute legal advice.
Los Angeles/Orange County Chapter 7 Bankruptcy Attorney
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
