Can I get a new home loan while I have an old second mortgage loan with charged off accounts? (California, credit report)

[roseville lover]

In California four years ago my husband lost his job and we lost two houses to foreclosure. One house had a $100,000 second mortgage and it has been charged off on my credit report.

Is there any way that I could qualify for a new home loan even though I have a charge off? Or will I need to declare bankruptcy to erase the $100,000 debt?

[AdotAllen]

A charge off will stay on your credit for 7 years. Any lender is going to ask you what happened and require a letter of explanation. Due to the fact that you had 2 houses, and depending on the lender, that may be enough to deny the request. With the lenders I deal with if they see a 30 day delq in the past 2 years, they are going to be denied.

[mortimer]

Originally Posted by roseville lover

... any way that I could qualify for a new home loan even though I have a charge off?
Or will I need to declare bankruptcy to erase the $100,000 debt?

The possible - soon-to-be - bankruptcy situation - might be an obstacle to a new home loan.