Selling Home and getting a new mortgage???

[brokeinTN95]

hey there - i have a question regarding getting a new mortgage after chpt 7. We received our discharge in Nov 2009. Our current mortgage was with BoA and they did not reaffirm. We kept the payments current in order to stay in the house. Now my husband has taken a job in IA since he was laid off for a year. We are relocating and selling the house to my parents for what is owed. I was willing to walk away from it - but they decided to buy it since they lost theirs in the May 2010 flood.

Long story short - how long before we can get approved for new loan? current loan is an FHA and we never ever got a over a 30 day late on the mortgage. And since we did not go thru forclosure - do we just need the 2 years? And what kind of interest rates are we looking at? my husband seems to think we will have some ridulous rate of 10 or 15% because of the bk.

Help!!!

[CCsAreEvil]

Short answer: 2-3 years after BK. Almost all (if not all) lenders won't even work with you. Even then (after 2-3 years), your interest rates will be high. Is it worth it? For me personally, no.

My wife keeps thinking we can buy a new home because there have been so many foreclosures and homes are going for real cheap... well, there's a reason (or several) for this. I don't think reality has set in for my wife yet. I told her we'll be renting for at least a couple of years if we walk away.

BK is a "huge" hit on one's report. But on the bright side, look what we get/got? A clean slate.

[Ugh07]

2 years if you have re-established your credit with FHA. Your rate will depend on your score but will not be anywhere close to 10%