Hello my friends! It’s Wednesday and that means one thing – it’s time for Watch-It Wednesday our weekly video blog! This week Jim Woodworth is back to talk to us about buying a home after bankruptcy. Can you qualify for a mortgage after you’ve filed for bankruptcy? Let’s find out:
If you can’t see the embedded video, watch our Mortgage Bankruptcy video here.
Got something to say? We’d love to hear from you! Email us at content@quickenloans.com and we just might feature your question or comments in an upcoming blog post!
Video Transcription:
Hi my name is Jim Woodworth, I’m a Mortgage Banker at Quicken Loans and I’m going to talk to you a little bit about applying for a mortgage after a bankruptcy. I get this question a lot and for the most part, after your bankruptcy is discharged you’ve got to prove yourself all over again. It’s imperative that you get some type of new credit established after the fact. Whether it’s a car loan, a bank loan, credit card, student loan – whatever it may be, it’s imperative that you show lenders going forward that you’ve done a good job of managing your credit. After the bankruptcy is discharged, in most cases you’d have to wait at least 2 years before you’d be able to get new financing for a mortgage – whether it’s purchasing or refinancing. In some limited cases we can get you approved after one year (FHA loans and Chapter 13 bankruptcy only). It depends on what kind of credit you have, what kind of payment history you have and how many pieces of credit you have – but generally speaking you’d have to wait at least 2 years. It’s imperative you get some kind of new credit established after the bankruptcy and the most important thing is you get your payments made on time after the bankruptcy. We’d love to talk to you about it specifically & everybody’s situation is a little bit different so we may be able to get one person approved and not the other so give us a call or find us online. You can find us online at www.quickenloans.com – we’d be happy to help.
WE WANT YOUR FEEDBACK
You should add that if any real estate was involved, even if you kept it, that it is 3 years after a bankruptcy for quicken loans.
HI Danielle,
Actually, we have to wait at least 2 years after the bankruptcy is discharged (in most scenarios). If the home was included in the bankruptcy, we cannot consider financing until three years after discharge. Each scenario is different, so it is possible that there was something unique about your situation that required us to wait three years. However, if you’d like us to check again, please let me know. Thanks!
My circumstance is very unusual – some will say lucky. Forced into C 11 to protect equity in my home. C 11 dismissed June 2011. All creditors paid in full including interest and collection fees. Balance of cash assets exceed $1.0M. Debt – zero. Credit score June 2011 560. Credit score today 700.
Still can’t get a mortgage! Any hope?
Hi Peter, thanks for reaching out to Quicken Loans. We will have one of our home loan experts contact you shortly to learn more about your specific situation. Please let us know if we can be of any other assistance.
THANKS VICTORIA
i was told by the quicken loan guy it was 4 yrs after BK- after he knew it was only 3.5
Hi, Jack. I’ve passed your comment on to our Client Reltions team. Someone will be getting in touch with you shortly to help sort this out.
Thanks for letting us know.
Have a great weekend!
I have read your comments on bankruptcy and have found the information very useful. My question is how long do I have to be with my new employer before I can apply for a loan?
I agree with Danielle. It is a hidden ’3-year’ rule even if you retained your home and have sparkling credit now. Very disappointing to be mislead like this. The US Trustee doesn’t give you a choice of keeping your home out of bankruptcy or any other debt either. You can ‘reaffirm’ on it after but that still doesn’t keep it out of BK case. So I guess I want to know now if I go back and reaffirm on my mortgage if Quicken would consider me prior to 3 years post discharge. I already talked to a rep but this info was not offered.
Hi Laurel, thanks for contacting us, one of our home loan experts will reach out to you with a few more questions to see if we can assist you. Thanks.