How long will I have to wait before buying a home after filing for bankruptcy? 13 Answers as of December 21, 2010

Our family has accrued so much debt that we have lost our home. At this point, bankruptcy seems like the only option. We do not want to have to stay in an apartment forever after we file, we will eventually want to buy our own home again. How long do we have to wait to buy a house after filing for bankruptcy?

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
You must wait only two years then you are FHA qualified again assuming you have the income.
Answer Applies to: Tennessee
Replied: 12/21/2010
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
That is difficult to say, it stays on your credit report for ten years but some banks will work with you before that period is up.
Answer Applies to: New Hampshire
Replied: 12/21/2010
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
No one can answer that question- it will depend on lending practices in the future, your income, and post bankruptcy credit score.
Answer Applies to: California
Replied: 12/20/2010
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
If you file a Chapter 7 case you need to start rebuilding your credit after your bankruptcy case closes. Most Chapter 7 cases close in about three months. To qualify for a conventional mortgage that is usually sold by the bank to FNMA or a similar government-backed entity requires that you must not have filed a bankruptcy case within three years. Therefore, most likely if you rebuild your credit you will have to wait at least three years after filing a Chapter 7 case to be able to buy a house. Chapter 13 requires you to be in plan of at least three years and you cannot use credit while in bankruptcy. Therefore, it will take you longer to rebuild your credit although Chapter 13 remains in your credit report seven years while a Chapter 7 stays in your credit report for 10 years. You are not allowed to use credit in Chapter 13 except with permission by the Chapter 13 trustee. While it was easy to buy a house before, now on you will find it a lot more difficult to qualify for a home mortgage without a substantial down payment and good credit whether or not you filed for bankruptcy.
Answer Applies to: California
Replied: 12/18/2010
Law Offices of Daniel A. Higson
Law Offices of Daniel A. Higson | Daniel A. Higson
It is usually about two years before you would qualify - provided you keep your other payments (utilities, car, etc) current and on time.
Answer Applies to: California
Replied: 12/18/2010
    Mankus & Marchan, LTD
    Mankus & Marchan, LTD | Tony Mankus
    There is no legal time limitation; you can apply for a loan the day after you file for bankruptcy. Your ability to get financing for the purchase of another home is based on the judgment of the bank which will determine your credit worthiness (at the time you apply for the loan) and the interest rate to charge you. It's always a good idea to shop around among several banks.
    Answer Applies to: Illinois
    Replied: 12/18/2010
    Stuart Jon Bierman  Attorney at Law
    Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
    This question could be better answered by someone in the consumer home mortgage field. As a lawyer with general knowledge, I would say that it depends upon a few variables. In general, you might end up having to shop around to get pre-approval before you sign a contract to buy a house. Different mortgage companies have different policies and depending upon your work history and amount of money available down payment and/or if you can find a co-signor then some might offer you a mortgage, others might say no, or some might say yes but offer a higher interest rate which you could later reduce by refinancing. Good luck in the future and I hope this is a little helpful to you.
    Answer Applies to: New Jersey
    Replied: 12/18/2010
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Under current regulations, you can qualify for two years after the bankruptcy; and three years after you lost the prior home. You have to show that the foreclosure and bankruptcy were caused by circumstances beyond your control, like loss of income or medical reasons.
    Answer Applies to: Virginia
    Replied: 12/18/2010
    Law Office of Raymond J. Dague, PLLC
    Law Office of Raymond J. Dague, PLLC | Raymond J. Dague
    I have done real estate purchases for former bankruptcy clients of mine three years after the bankruptcy. There is credit life after bankruptcy, and sooner than you would expect.
    Answer Applies to: New York
    Replied: 12/18/2010
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    There is no law requiring a certain period of time to pass before you can make purchases. Bankruptcy stays on your credit report for 7-10 years, so it will have some level of impact for as long as it remains on your reports, however as you move beyond the discharge, you will begin to rebuild your credit and may qualify for loans to purchase a new home. If you are looking for assistance with your bankruptcy filing, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 12/17/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    The issue is when someone will lend you money for that purpose. There is nothing in the bankruptcy law that requires you to wait to buy a house. How long it will take depends on how quickly you rebuild your credit, and the individual lenders you are seeking loans from.
    Answer Applies to: California
    Replied: 12/17/2010
    The Law Office of Brian Nomi
    The Law Office of Brian Nomi | Brian H. Nomi
    After you file a bankruptcy, you will want to re-build your credit. This could take 2-3 years. The bankruptcy will stay on your record for 10 years. Bear in mind that they main issue is going to be qualifying for a loan. Work with a good, experienced loan officer, and do what he/she tells you to in order to clean up your credit, and qualify to buy a home again. It can happen!
    Answer Applies to: California
    Replied: 12/17/2010
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