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How does the lender view the discharged mortgage?

Posted on: 21st Jun, 2012 02:33 am
i'm planning to relocate to a better area. if i can't do that, i want to at least improve my existing home. i filed chapter 7 bankruptcy 5 years ago. i wanted to reaffirm the loan but the bank was not interested. the house was never foreclosed, and the account is kept current and i can’t sell off the loan. as far as i know the obligation to pay the debt goes away, but the creditor can still foreclose on the property. now i want to know what if i want to apply for a mortgage on a new home, how does the lender view the discharged mortgage?
hi katey,

after a bankruptcy discharge, you may have to wait for 4 years normally in order to qualify for any kind of mortgage or refinance. as your bankruptcy discharge is more than 4 years old, you will be able to get the loan. but you will have to show proper documentation that you've paid off the mortgage payments on time. in case you decide to short sale your present property or let it go into deed in lieu of foreclosure, then you will have to wait for another 3-4 years to qualify for a new loan.

take care.
Posted on: 21st Jun, 2012 03:30 am
Hi Katey,

Sara is absolutely correct. You should contact your lender and check out if they can give you a loan depending upon your present financial situation. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out if you can qualify for a loan.

Thanks
Posted on: 21st Jun, 2012 09:07 pm
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