HELP! Mortgage after chap 7

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Hello all, My chapter 7 bankruptcy was discharged a little more than a year ago and Iam wanting to purchase a home in the near future. I understand that FHA looks at the reasons for filing and Im trying to figure out if I have a leg to stand on....I was going through a divorce and my ex filed chapter 7 to avoid responsibility for a home we owned that was up for sale. Therefore, the entire payment etc would fall back on me. Also, does it help that I have someone with good credit getting the new home loan with me? Any input would be greatly appreciated!!!!!!!!!!!!!!

smckaybiz · Posted: Tue Aug 12, 2008 4:36 pm Post subject:

Welcome to the forum nicholas!

I have also filed for a chp 7 bankruptcy many years ago and if I remember correctly most lenders wanted the bankruptcy to be discharged for atleast 2 years before they were willing to qualify us for a mortgage. With your partner having good credit that may make things different though.

chrisburns · Posted: Wed Aug 13, 2008 7:27 am Post subject:

In general the previous poster is correct that 2 years is required out of bankruptcy with no major derogatory.

an FHA manual underwriter may be able to accept it assuming you have re-established credit and that you have a really solid letter of explanation for the BK along with proof to back up the story.

I believe that as long as you are on the loan you will have this problem regardless of your partner's credit.

gmakerley · Posted: Wed Aug 13, 2008 8:53 am Post subject:

i am in agreement that 2 years is the standard time to be out of bankruptcy. as chris noted, a manual underwriter may allow for some flexibility; but this is a different market these days, so i wouldn't want to count on that.

chris' last sentence makes a great deal of sense. the bankruptcy will continue to be problematic until next year.

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Thank you all for your info...it was very helpful...not necessarily what I wanted to hear but helpful none the less.

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