Question

I did a BK-chapter 7 discharged in 2010. I included my home, foreclosed in 2011. Do lenders look at BK date or fc date?

Answer 1

You should be okay either way. It's been a few years. Normally, a BK and foreclosure together just counts as one derogatory credit event. If the foreclosure was not part of the bankruptcy, it counts separately.

Answer 2

If you have your mortgage part of Chapter 7 Bankruptcy and do not reaffirm the mortgage, there is a four year waiting period after CHAPTER 7 BANKRUPTCY discharged date to qualify for Conventional Loans.  However, the housing event needs to have been finalized.  The housing event is foreclosure, deed in lieu, short sale. Date of housing event doesn't count as long as it has been finalized. With FHA and VA LOANS the waiting period starts after the housing event has been finalized. 3 years on FHA LOANS and 2 years on VA LOANS.

Gustan Cho NMLS 873293
Branch Manager
The Gustan Cho Team at USA MORTGAGE
www.gustancho.com