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FHA loan after bankruptcy?
This past year, I went through chapter 7 bankruptcy and lost two properties in the process. The first was a rental home which was taken by the trustee as an asset. Its mortgage was in perfect standing up to the day the trustee took possession. Since then, he has evicted the tenants and made known his intent to sell. However, he has not paid toward the mortgage and the mortgage company has made known their intent to foreclose, even as the trustee is preparing to sell. The second property was a Florida condo that I owned with three others. It was worth far less than the mortgage, but the mortgage was in good standing when I filed chapter 7 as well. Since then, the property mortgage and deed have not changed (I’m still officially on both) although the trustee has accepted the condo into the bankruptcy, he abandoned the property. The other owners have now stopped paying the mortgage and are weighing their options of deed-in-lieu, short sale, bankruptcy and selling out right and taking the loss. Other than this bankruptcy, my credit has been perfect for over 20 years. Base on the above, how long will it be until I’m eligible for an FHA loan? 2 years? 3 years? If it’s a certain period of time, does the time start the day I filed? The date I was discharged? The date my bankruptcy was closed or the date the last property changes hand so that my name is no longer on the deed or mortgage? I keep getting conflicting information, even from FHA lenders.
Related Websites
- Understanding Chapter 7 Bankruptcy Exemptions | The Bankruptcy Blog
- Facts About FHA Refinance Loans | Real Estate Articles
- Fha Mortgage Lender Florida, Fha Loan Florida, | Finance News
- Different Chapters of Bankruptcy & how they work | Saga Savings
Posted by MovingJacksonville.com
2 Responses to FHA loan after bankruptcy?
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Richard you sound like a smart and savvy business man, why are you wasting your time asking here? You need legal advise. My best guess, and that is all it can be is 5-10 years.
The clock starts from the date of DISCHARGE. 100% sure of this.
In regards to getting a loan. It usually will be 3 years, but it will also depend on your credit score.
You may be able to actually get a loan today, but the rate will be around 5% higher then market and you will need at least 20% down, maybe more.
There are also other issues that you need to be looking at.
Even if the banks don’t come after you for the balance because this amount has been discharged with the BK. You will still have a tax due on the discharged amount. These were investment properties. TALK WITH A TAX ACCOUNTANT/LAWYER