Mortgage and Chapter 7

[NewbietoFinance]

I have been doing a lot of reading, but not sure exactly on the answer here. I know I have to wait 2 year post CH7 to get financing, however, haven't seen any discussion on if i can start the "pre-approval" process before that 2 years is up? Is there any reason I can't? or would they just want to wait til the 2 year mark to be sure?

[ugghh]

What I read is that it depends on the lender. Some will conditionally approve you saying that as long as you don't close before your 2 years are up. Some will require you to wait. I would think the best thing to do is to call your preferred lender.

[Brian B The Loan Professor]

The only issue is you will NOT get an automated approval until you are two years post BK - most base the preapproval off of these findings

You should be able to find a lender that will work with you - it would be a conditional preapproval at best -

 

Good Luck

Brian

[NewbietoFinance]

Heh, I don't have one of those yet, Still a year to go.. but i want to streamline it as much as possible.

[ugghh]

If you are going to build you might be able to find a builder that will work with you if you work with his preferred lender. Just a thought.

[NewbietoFinance]

Thanks guys!

[Brian B The Loan Professor]

Was the ch 7 because of loss of income? If it was and you can docuent it was out of your hands there may be an option at 1 year.

B

[NewbietoFinance]

No, it was due to Divorce. She liked to spend more of my money than i made.

[Brian B The Loan Professor]

yeah there goes that one - two years -

It will go fast -

 

B

[NewbietoFinance]

One more question, Can you use that previous year tax return as a Down payment? Or do you need to "Season" the funds? For instance, if we get a return next year that could account for a portion of the downpayment?

[Brian B The Loan Professor]

You can use the funds - they need to be sourced or seasoned - so as long as you can document that it came from an allowable source you are ok to use it

 

B

[NewbietoFinance]

Cool, Thanks!