How Long Until I Can Buy Another Home After Bankruptcy…After Foreclosure…After Short Sale?

By: Kelly M. Resnick, Resnick Law Offices, Bay Area

“So, How Long Until I Can Buy Another Home ?” Bankruptcy attorneys are frequently asked this question by Debtors just before the filing of a petition or even after the Discharge has been granted.  I am happy to be able to provide the answers to many of the questions related to Bankruptcy, Foreclosures and Short Sales.

USDA Rural Mortgages
Chapter 7 3 years from Discharge or dismissal.
Chapter 13 If already Discharged

  • Between 12 and 24 months with a payment history from the Ch.13 Trustee
  • After 24 months after Discharge

If still in Chapter 13 Plan

  • At least 12 months into the Plan with payments up-to-date
  • Court consents to the new loan
Foreclosure, Deed-in-Lieu of Foreclosure or Short Sale 3 years from completion of Foreclosure, Deed-in-Lieu or Short Sale
  If the loan is for less than 80% of the value –  2 years

If the loan is for less than 90% of the value – 4 years

If the loan is for more than 90% of the value – 7 years

For extenuating circumstances *, if the loan is for less than 90% of the value – 2 years

VA Mortgages
Chapter 7 2 years from Discharge date
Chapter 13 If already Discharged

  • Between 12 and 24 months with a payment history from the Ch.13 Trustee
  • After 24 months after Discharge

If still in Chapter 13 Plan

  • At least 12 months into the Plan with payments up-to-date
  • Court consent to the new loan
Foreclosure, Deed-in-Lieu of Foreclosure or Short Sale 2 years from completion of Foreclosure, Deed-in-Lieu or Short Sale

* Extenuating circumstances

To be eligible for the reduced ‘seasoning’ time due to extenuating circumstances, the borrower must have re-established an acceptable credit score for 2 years and provided a letter of explanation and documentation proving that the reason for the legal action was not due to financial mismanagement.  Here are some examples of acceptable reasons:

  • Death of primary wage earner
  • Long-term illness or disability not covered by health insurance
  • Prolonged unemployment for reasons outside of employees control
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About Kelly

As the Managing Attorney at Resnick Law Offices, I work with clients one-on-one to create a personalized debt solution strategy. We represent clients in all areas of financial distress - Bankruptcy, Debt Settlement, Tax Debt Negotiation, Short Sale. It's never too late to get back on the road to financial success! We offer free 1 hour consultations for all new clients and offer affordable, competitive rates because we believe debt relief should be affordable for everyone! Feel free to email me directly with any inquiries: Kelly@ResnickLawOffices.com
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