Zillow Advice: Approval Process - help with a mortgage and bankruptcy http://www.zillow.com/advice-thread/help-with-a-mortgage-and-bankruptcy/510431/ Zillow Advice | Zillow Real Estate Hi Dominic,&nbsp;House #1 ... http://www.zillow.com/advice-thread/help-with-a-mortgage-and-bankruptcy/510431/ Hi Dominic,&nbsp;<br/><br/>House #1 - you've met the BK waiting periods however, you haven't exceeded the foreclosure waiting period. If you included a mortgage in the bankruptcy it's treated the same as a foreclosure. Your waiting period begins after title transferred out of your name. Conventional requires a seven years wait for financial mismanagement (and/or especially if you're not financing an owner occupied property and it's not a purchase or rate/term refinance transaction they require 7 yr wait).&nbsp;<br/><br/>On the other hand, trying to purchase a new primary residence: if you consider FHA financing, you may meet their requirements. What to watch to know if your three years is truly up, look online at the county auditor's site, see when the property transferred out of your name, that's your start date. However, you spoke of wanting cash out from #1 to use as down payment for house #3. I'm not sure what amount of liquid assets you have in the bank but what would be needed would be 6 mo mtg payments in the bank for each property. So, house #1 is free and clear, 6 mo of taxes and insurance would be required. House #2, you'd need to show copies of the land contract to prove payment plus proof of taxes and insurance so we can make sure you have 6 months principal/interest/taxes &amp; insurance in the bank somewhere. That's 6 mo of each property.&nbsp;<br/><br/>When we speak of reserves, that's cash left in the bank after closing.<br/><br/>Of course that's not all that's needed to consider financing for a third property but that's a start.<br/><br/>If you find you have add'l questions, I'd be happy to answer. <br/><br/>Best wishes,&nbsp;<br/>Kim Lawson<br/>Ohio Licensed Mortgage Loan Originator<br/>Contact and licensing information is located on my profile. Tue, 10 Sep 2013 13:00:00 GMT http://www.zillow.com/advice-thread/help-with-a-mortgage-and-bankruptcy/510431/ 2013-09-10T13:00:00Z We suggest that you consult ... http://www.zillow.com/advice-thread/help-with-a-mortgage-and-bankruptcy/510431/ We suggest that you consult with a loan officer at two local banks. Tue, 10 Sep 2013 13:13:00 GMT http://www.zillow.com/advice-thread/help-with-a-mortgage-and-bankruptcy/510431/ 2013-09-10T13:13:00Z