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When can we buy again after Ch 7 and deed-in-leiu?

My husband and I filed for Chapter 7 bankruptcy in May 2010 and included our home. We were discharged in August 2010, and moved into a rental. The bank agreed to a deed-in-leiu and we signed the house over to them in September 2011, and it was recorded in October 2011. We would like to buy a home again and have saved enough for 20% down. I know that there is a 2 year waiting period after the bankruptcy FHA, but is it true that we will actually have to wait 3 years after the bank took our home back with a deed-in-leiu to be able to buy again? Our credit scores are both over 700 and we have a lot of cash to put down. Is there any way around this waiting period? Would anyone know of a portfilio Lender that does not adhere to the Over lays for a FHA loas, USDA will not work we make to much Money We are in orlando Area
  • December 03 2012 - Orlando
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Answers (6)

Good day due to the deed-in-leiu you have to wait  until October 2013 before you can apply for an FHA loan. Just make sure you have established credit and has a minimum of 3 open credit lines. I can answer more questions if you want to contact me. Thanks
  • January 03 2013
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Work on getting your credit back on track and as high a score as possible. I worked for a law firm previously that deals with these issues and this is basically how it goes: 

2 years for BK-7 without property included in Bankruptcy
3 years for BK-8 with property included
1 year for Short Sale (No BK)
3 years of Deed-in-Lieu for FHA/USDA loan
2 years of Deed-in-Lieu for Freddie/Fannie/VA loans

Keep in mind that you can always purchase a property anytime as long as it's a cash deal or if you have a family member that has good credit and a consistent job for 2 years that can obtain a federally backed loan. You can also look into Owner financing or find an investor, however, those can be tricky and you should always have an attorney review those type of contracts before signing because anything is negotiable in real estate and I've known Borrowers to secure some pretty bad loans through those sources. 
  • January 03 2013
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3 years.
  • December 24 2012
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I would suggest that you contact a Mortgage Consultant so they can pull your credit and set you on a plan for qualification. If you don't know of any, please feel free to contact me for referral. 

Understand that even though you may not qualify yet, a mortgage consultant can help you attain your goal by counseling you based on your personal situation. 
  • December 12 2012
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Thank-You,  Would you know of a Portfilo lender?


Portfolio lenders have the ability to lend from their own funds. This means that they are able to make loans available at any terms acceptable to them. In many cases, this means that a portfolio lender will have funds available with less restrictive qualifications than a conventional lender.
  • December 03 2012
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Fannie Mae requires 2 years from short sale (80% LTV), 4 years from Ch. 7 bankruptcy. Freddie Mac requires 4 years for either. FHA requires 3 years from short sale and 2 years from Ch. 7.
  • December 03 2012
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