Timeframe for buying a new house after foreclosure and chapter13 BK?

[Guest123]

I have been seeing alot of conflicting information on when we will be able to buy a house again. We are almost one year into our ch13 BK so we have lots of time ahead of us.

I have seen that for a Foreclosure it is a 5 - 7 year wait til you can buy a new house.
Since our foreclosure has yet to take place this kinda bothers us.

I have also seen that for a Foreclosure/BK it is 4 years after you file and FHA guidelines are 2 years after a foreclosure. If this is the case them we shouldn't have any issues at all.

So after reading that we are confused.
After our ch13 BK is all done we will have a very good income and have been on the job for over 15 years. We will have a good amount of cash to put down and can use 401k for a loan if needed. So the amount to put down on the house we want will not be an issue.

Thanks

[StartinOver]

Personally, in this economy, I wouldn't use 401k loan for a house purchase. I did that once, and a few years into it, hubby and I both lost our jobs and couldn't pay the 401k back in the 60 day window it allowed, so we took a hit for premature distribution (we're both under 59 1/2) and paid taxes and penalties on it. In this economy, that seems a likely scenario to happen again. Proceed with caution...

[Guest123]

Personally, in this economy, I wouldn't use 401k loan for a house purchase. I did that once, and a few years into it, hubby and I both lost our jobs and couldn't pay the 401k back in the 60 day window it allowed, so we took a hit for premature distribution (we're both under 59 1/2) and paid taxes and penalties on it. In this economy, that seems a likely scenario to happen again. Proceed with caution...

Luckly our jobs are not an issue in this economy so the 401K loan if we decide to use it wont be an issue.
But thanks for the advice.

[Superox]

Heya Guest123,

I was in the Mortgage Biz for 10 years before the economy finally caught up to me and forced me to find greener pastures. As of a few months ago, you would need to be 2 years out of a Chap 7 before being considered for a mortgage and 3 years out of a foreclosure.... keep in mind.... whether a foreclosure ever truly happened or not, a mortgage reporting as 120 days delinquent or more on a credit report is going to be viewed as/subject to the same guidelines according to the underwriters.

As far as a chap 13 goes.... you could refinance to buy yourself out of it after one year of on time payments to the trustee via an FHA loan.... this, of course, would also be contingent on whether you had enough equity to do it.

[Jbgraham]

SuperOx, you might know this....Does the clock start ticking after you home was surrendered in BK (when you filed BK), when the BK is discharged, or when the home is actually sold at auction?

We surrendered our home April 2010, when we filed Chapter 13. Our last mortgage payment was February 2010. We are of course still living rent free in our house, and have yet to hear anything from BofAmerica. We paid off our 100% chapter 13 and were discharged August 2011. We have paid off all of our debt (except student loans) and are currently saving thousands of dollars each month for a down payment on a new house when we finally get kicked out of our home. Just curious to when you think we will be able to buy a new home. There is so many conflicting opinions.
Thanks

[Superox]

JBGraham,

I've been trying to figure that one out myself.... As you say, there are tons of conflicting opinions out there.

Sorry, wish I had a better answer for you....

I can tell you though, that your outcome can vary greatly depending on the underwriter you're assigned as well as the case that your mortgage rep builds for you.

[Guest123]

I have been looking intothe buying a new house question too.

With just a Ch.13 you can actually buy a house while currently into it....you have to get the trustees premission and find a lender. But I have personally seen this happen.

From what I have read on the Foreclosure is very confusing as some list it from 2 - 7 years after the foreclosure process is completed. I'm pretty sure this is based on "WHO" you buy from, such as Fannie Mae. And again I have seen someone personally buy a house after a foreclosure and that was in a current Ch.13