Bankruptcy / Foreclosure Approvals


CHAPTER 7 – The  FHA mortgage applicant may still qualify for a new FHA mortgage after declaring Chapter 7 bankruptcy, if at least 24 months have passed since the bankruptcy discharge date. The FHA mortgage applicant  must also have re-established proof of timely payment history or have opted to incur no new debts (this means you specifically chose to take out no new loans, credit cards, etc.). Some FHA mortgage lenders will accept a time period of less than 2 years (though usually no less than 1) if you can show the bankruptcy was due to extenuating circumstances.

What are the FHA guidelines for FHA mortgage applicants with a previous foreclosure or deed-in-lieu of foreclosure?

CHAPTER 13 – The FHA mortgage applicant may also still qualify for an FHA insured loan after declaring Chapter 13 bankruptcy after at least 12 months of the bankruptcy repayment plan period has passed and the borrower has been making satisfactory payments. In these cases, the borrower must also request permission from the court to enter into a new loan contract.

FORECLOSURE –  To qualify for an FHA mortgage or a ‘deed-in-lieu of foreclosure you must wait a full 3 years after the title/deed transferred out of your name.  If there were extenuating circumstances beyond your control and you have re-established good credit since the foreclosure, you may still qualify. This will depend upon the lender and the circumstances. Possible reasons for past foreclosure that may be accepted include the death of a wage earner in the family or serious illness.


Tax Liens For FHA Mortgage Approvals

Bankruptcy – Foreclosure – Short Sale

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