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When can I buy a home after Bankruptcy? How?

We filed Bankruptcy in 09 just before the market turned due to some very bad advice to refinance before the rates went up. Our condo went from 400k to 134K in 3 months, and our payments jumped so we were barrowing from peter to pay paul!  Getting deeper in debt.  We have been saving and trying to rehab our credit.  What are the chances of getting a loan to buy a house?   
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February 24 2011 - Hollister
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It can take months to years to be able to obtain another loan after bankruptcy. Much depends on the type of bankruptcy and the damage that was done to your credit prior to the bankruptcy and how you are managing your credit after the bankruptcy. From what you have written, you are in no position to try for a loan at this time. You need to get yourself on stable ground before taking on anymore debt. I take it you had an adjustable rate mortgage that took a jump? You may want to consider a short sale if you're getting over your head in debt to avoid foreclosure. If you are able to hang in there with the property you have, that is even better as a short sale will negatively impact your credit. Once you have successfully gotten your debt under control and able to save money for a down payment, talk to a lender. They will go over your credit report and guide you in the direction you need to go.
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February 24 2011
Do you still own the condo? I'm a little confused by the sequence of events you describe but the short answer is that FHA loans have the shortest waiting time from significant derogatory credit events to qualifying again for a home loan.

Typically you must wait 2 years from the discharge of a Chapter 7 bankruptcy before you can apply for an FHA loan, and that assumes you've re-established good credit.

However, it sounds like you may have a foreclosure situation with the condo.  If that's the case the waiting period for an FHA loan is 3 years from the foreclosure.

The market has been really rough on people and hopefully you'll be able to get back into a home if that's what you wish to do.
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February 24 2011
If it was a chapter 13 and you are looking in the FHA loan range in your area you can get a loan as long as everything is discharged one day after that. If it is another type of BK you need to contact a loan officer in your area to walk you through the current guidelines.
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February 24 2011
Bankruptcy is there to let you get out of certain financial obligations and get you back on your feet, but sometimes that is very easier said than done.  One good thing though, you should be able to qualify for some sort of loan after 2 years AFTER your BK is discharged assuming that your rating is up to it. A good site to go to is here.. http://www.money-zine.com ... nkruptcy/ and also here..  http://www.fha-home-loans.com/ look at the Q and As. All is not lost after BK but you do have to show that you are on the way to financial recovery. The rates will be higher but they can always be re-negotiated as your rating improves. Hope this helps and good luck with everything.
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February 24 2011
 
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