Can someone please advice, i had a chapter 13 case but it was dismissedbecause the lender didnt agree to modify, my question is, can i buy another home regardless the dismissal of the chapter 13? And how soon? not with a lender maybe with an investor..Thank you.
There is no set time before a lender will lend you the money to buy a home. It is completely within the lender's discretion.
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If you can find the money you are free to go into as much debt as you like. Whether it makes sense or not.
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It sounds like you were in a Ch13 because you were in arrears on your mortgage and trying to modify.
If your case was dismissed, it also sounds like a foreclosure is on the horizon.
Different lenders have different policies; but you may have to wait anywhere from 2 to 6 yrs after a foreclosure to buy another house.
If your mortgage holder/servicer forecloses on your home, to qualify to purchase another home using a typical long term mortgage, such as an FHA loan or a FNMA loan, there is a waiting period of 3 years after the foreclosure. In rare events, an FHA loan can be approved after 2 years, provided you can meet some very strict requirements.
None of the rules for qualification to purchase a home with a typical long term home mortgage apply to individuals willing to owner finance a home or loans from a credit union. However, even individuals that will sell with an owner finance my consider your credit score and credit union will certainly consider your score.
If you chapter 13 was dismissed and the mortgage holder/servicer forecloses then files suit against you to collect the mortgage deficiency, you may be forced into a chapter 7 to discharge that and other debt that you did not discharge because your chapter 13 was dismissed. If you have a deficiency remaining after the foreclosure and other debt showing on your credit report with outstanding balances, the fastest way to rebuild your credit score may be to reinstate or reopen your chapter 13 and covert to a chapter 7 or if your court will not allow that, file a new chapter 7. There is a 2 year wait for FHA loans from a discharge in a chapter 7, but this will probably be over by the time you reach the 3 year period after the foreclosure and you will be able to rebuild your credit score easier, once the mortgage deficiency and most unsecured debt shows as included in bankruptcy with a $0.00 balance on your credit report.
If you were represented by an attorney, call him/her or call another attorney and take advantage of a free initial consultation with an experienced bankruptcy attorney that handles credit repair, chapter 7 and chapter 13 cases even if you think you need to file under chapter 7 this time. Become educated on all the issues involved and related to your current economic situation, find out the advantages and disadvantages for reopening your case and converting or filing a new chapter 7, and use an attorney that can help you make the right decision for you. Most bankruptcy attorneys will meet with you at no charge for the initial appointment. You can use the Avvo "Find a Lawyer" link at the top of this page to search for an attorney. On Avvo, look at the attorney's profile to see the areas that he/she handles.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
The important issue is making certain that you are out from under the mortgage for the home where the mortgage was not modified. You can do that by either filing a Chapter 7, or if you are not eligible as a Debtor for Chapter 7, then Chapter 13. In either of these Chapters you can surrender the home where the mortgage was not modified to avoid any tax consequence for forgiveness of debt of the deficiency amount or collection activity. Many times in a Chapter 13 you are able to get financing for a new home, while the bankruptcy is active. You may have to seek owner or investor financing, but it can be done.
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