Hi,
I'm awaiting my ch 7 discharge next month. I included my FHA home loan in the bankruptcy with intention to surrender the property. The deed and mortgage is in both my husband and my name, but the note was in my name only. I was the only one that declared bankruptcy. We have a short sale offer and the bank now has expressed interest in completing a short sale, so I am hoping to resolve the home situation that way rather than foreclosure.
We are trying to figure out the best way to plan for another home purchase. My issue, aside from bankruptcy, is that I am self employed, and as I understand it, have a 2 year "waiting" period anyway because my businesses were just started last year and it would be very difficult to find a lender to give me a mortgage just based on the self employment issue alone.
My husband has a steady job and was not included in the bankruptcy. If we avoid foreclosure by completing a short sale, when would he first become eligible to get a mortgage? Could he use the FHA back to work because my income was drastically reduced after a layoff in 2012? His credit right now isn't stellar, but we could work on re-building it. I spoke to a mortgage broker a few months ago and he told me the minimum wait is 3 years after a short sale, deed in lieu, or foreclosure, but I don't think he was aware of the back to work program.
If we can be eligible to buy based on my husband's credit after 1 year, that requires very different planning than a 3 year minimum wait.
Does it make any sense to execute a quit claim deed and remove him as an owner of our old house, or at this point that doesn't really matter? anyway?
I'm awaiting my ch 7 discharge next month. I included my FHA home loan in the bankruptcy with intention to surrender the property. The deed and mortgage is in both my husband and my name, but the note was in my name only. I was the only one that declared bankruptcy. We have a short sale offer and the bank now has expressed interest in completing a short sale, so I am hoping to resolve the home situation that way rather than foreclosure.
We are trying to figure out the best way to plan for another home purchase. My issue, aside from bankruptcy, is that I am self employed, and as I understand it, have a 2 year "waiting" period anyway because my businesses were just started last year and it would be very difficult to find a lender to give me a mortgage just based on the self employment issue alone.
My husband has a steady job and was not included in the bankruptcy. If we avoid foreclosure by completing a short sale, when would he first become eligible to get a mortgage? Could he use the FHA back to work because my income was drastically reduced after a layoff in 2012? His credit right now isn't stellar, but we could work on re-building it. I spoke to a mortgage broker a few months ago and he told me the minimum wait is 3 years after a short sale, deed in lieu, or foreclosure, but I don't think he was aware of the back to work program.
If we can be eligible to buy based on my husband's credit after 1 year, that requires very different planning than a 3 year minimum wait.
Does it make any sense to execute a quit claim deed and remove him as an owner of our old house, or at this point that doesn't really matter? anyway?
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