Expert: Norma Duenas - California Bankruptcy Attorney - 9/22/2010

Question
We filed bankruptcy almost 2 years ago that involved surrendering our house and a vehicle. Now, we want to buy again. Is the house considered a foreclosure or part of the bankruptcy? And how long before we can get another home loan?We have already had an FHA loan before - can that be used again?

Answer
Generally the time frame that you need in order to reestablish your credit and obtain a loan at a good rate would be 2-4 years. You can purchase a home before but the terms may not be as favorable and you may need to put a higher down payment to offset the risk to the lender. In addition FHA loans have guidelines that require you to wait at least 2 years after a foreclosure. If you surrendered your home in bankruptcy, you will generally still have a foreclosure listed on your credit report. Although from my point of view they should not list it as a foreclosure, must lenders still do.  If you need any further information you can contact us at:

http://www.socaladvocates.com/long-beach-bankruptcy-attorney