Would you think it would be possible if it’s “the last 7 or 8 or 9 years” instead of “the last 6 years”? Would you care to share why you think such a scenario is not possible?[/quote]
Because I deal with loans, lenders, guidelines, regulations & underwriters on a daily basis and don’t just make up scenarios based on what I think I know.
It makes for creative writing and the possibility of developing a movie ‘based on a true story’ though….
Nobody was getting a new loan for a few years after a bankruptcy, foreclosure or short sale.
Certain programs have loosened up a bit if hardship in the past can be well documented.
Credit scores were affected and are a factor in getting a new loan.
Although not impossible, there were some creative things happening on both sides of the fence…
BUT to assume that this was widespread because of stories in the media and internet is silly.
Based on the OP, it was not implied that ‘these people’ ever had any cash as you suggest, but all done with borrowed money.[/quote]
How about this, HLS?
So how long? I have made a helpful list to give you an idea of when the bankruptcy will stop being important for the purpose of getting a mortgage loan.
CHAPTER 7:
Conventional mortgage – 4 years from the discharge or dismissal date.
FHA mortgage – 2 years from the discharge or dismissal date.
VA loan – 2 years from the discharge or dismissal date.
CHAPTER 13:
Conventional – 2 years from the discharge date, or 4 years from the dismissal date.
FHA mortgage – You must have made at least 13 of the Chapter 13 payments on time. This should take 13 months.
VA – You must have made at least 13 of the Chapter 13 payments on time. This should take 13 months.
FORECLOSURE – you can begin to qualify for a mortgage 2 to 3 years after the foreclosure. These years can pass at the same time as the years from the bankruptcy, so you have an incentive to do both at the same time, especially if your house is underwater.
