Bankruptcy / Short Sale (loan officer, 2015, loan, lender)

[Blister1676]

Good Evening,

I had a bankruptcy completed in April 2011, my mortgage was included in this. The lender did not sell my house until September 2015, which was below what I owed before the BK. I have received multiple answers as some say my 3 year waiting to purchase another home started at my bankruptcy date, while others state it was when my house went thru the short sale and the deed came out of my name.

Any guidance is appreciated as we are moving to Nevada and would like to purchase.

Best Regards,

Chris

[Zippyman]

Originally Posted by Blister1676

Good Evening,

I had a bankruptcy completed in April 2011, my mortgage was included in this. The lender did not sell my house until September 2015, which was below what I owed before the BK. I have received multiple answers as some say my 3 year waiting to purchase another home started at my bankruptcy date, while others state it was when my house went thru the short sale and the deed came out of my name.

Any guidance is appreciated as we are moving to Nevada and would like to purchase.

Best Regards,

Chris

You’ve got something confused here - if you went through a ch 7 bankruptcy & included the house in the bankruptcy (didn’t re-affirm the loan), then the sale should not have been a “short sale”. A short-sale isn’t necessary after a bk unless you re-affirmed the debt.

As for calculating dates, if the loan was a government insured loan, there’s a “date of claim” for the old loan that may be slightly after the bankruptcy that’s used to start the clock for how long you have to wait to get another government insured loan. Your loan officer needs to dig that up to determine if a new loan is possible- it won’t be the bk date or the sale date.

[Blister1676]

Thank you, I greatly appreciate the advice. Have a great day.

[Pfhtex]

Chapter 7 BK Discharge date is the date at which the clock starts. BK over-rides FC if the home is placed into the BK. 2 years from BK discharge date.

[Tilo22]

For FHA, you will have to wait the three years of the recorded date. For conventional, they go off the bankrupt date. I know you stated that it was included in the BK but make sure you let the loan officer know right away and submit your BK paperwork right away so they verify this. There are some cases in which people think it was included in the BK but it really wasn't.