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Bankruptcy Foreclosure Success Story

Bankruptcy and Foreclosure Success Story

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We created this website to protect consumers from misinformation and inexperience.

Our goal is to help guide you through the home buying process, and give you access to experienced mortgage professionals to help answer your questions and ensure that there are no surprises along the way.

Over the past 9 years, this project has evolved into something far more than I could have ever expected when we started it.  I mean, who wants to read about mortgage on the internet, right?

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Luckily, I have a lot of experiences to share, and folks out there have a lot of questions that they are unable to get straight answers to from anyone else.

The story below was sent to us from a reader, Michele, that found an article we wrote in 2011 about how to buy a home after a bankruptcy and foreclosure.

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At the time I am writing this, the article has over 2,000 questions and answers from folks all over the Country.

Michele had asked me a question, and I helped her through the guidelines that would allow her to buy a home using a Conventional loan four years after her bankruptcy, and ignore the foreclosure date that occurred after discharge of the bankruptcy.

Because Michele was located outside of the State that I am a licensed loan officer in, I introduced her to a lender that I know and trust that is familiar with these guidelines.

Thank you Michele, for allowing us the opportunity to he guide you on your path to becoming a homeowner again!

Buy After Bankruptcy and Foreclosure

My name is Michele,

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Here is my story… After 20 years of marriage, I was recently divorced. As things can get messy during a split so did mine. A little back ground, my former husband was self-employed.

We came across financial difficulties in 2009 which led to us filing bankruptcy.

Flash-forward 2015, my ex was residing in our home and not paying the mortgage. This led to a foreclosure.

I had been renting for 4 years, building up my credit and decided I wanted to try and purchase my own home again.

In 2016, scared and unsure if I would be able to get another mortgage or what the waiting period would be (due to the prior bankruptcy and recent foreclosure),

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I had questions…   Where could I get answers? The Internet!

I started searching and came across Scott Schang on findmywayhome.com.   I posted to his page asking If and when I would be eligible again. Scott responded !!

He advised me when using Conventional financing to buy a new home, the lender will go by the Bankruptcy discharge date. The waiting period is 4 years and I would be eligible now!

In July 2016, Scott then gave me the name of a lender in my state that he recommended and trusted. Scott sent an email to Evan Wade of Movement Mortgage.

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Then the process began…Evan was a great. Movement was an awesome team to work with.   By December I was a Homeowner once again!!

Thank you Scott Schang for getting me over the fear and starting my journey to homeownership again. Thank you to Evan Wade for making this dream come true!

How Do I Get My Questions Answered?

We’ve created this resource to help you sift through the endless opinions and articles that may, or may not directly answer your question correctly.

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There are several ways to ask questions, and get expert opinions on this website.

  • Submit a Question:  On the bottom of this page, you’ll see a prompt that allows you to ask questions.  These questions come directly to me, and are answered very quickly.
  • Leave a Comment:  Below every article is the option to leave a comment or question.  We see this comments and questions in real time and the always answered, usually pretty quickly.

In addition to researching your questions and providing you with expert advice, I may be able to introduce you to a lender friend that I know has experience with your specific situation and can help.

Hope this helps?

About Your Expert

Scott Schang

As a 19 year veteran of the Mortgage and Real Estate industry, I am passionate about educating and empowering consumers. I have been writing about consumer protection issues, and making sense of complicated real estate and mortgage topics on this website since 2007

Leave a Question or Comment About this Topic

  • Dana says:

    I too went through a devastating financial hardship and it took me a whole year a few months to fully make the decision to file a chapter 7. My discharge was Sept. 2017. I did not include my home in the bankruptcy but I did get approved for a modification and I am currently making on-time payments. I only have one credit card ( I absolutely refuse to take on any additional debt ) that I use monthly and I keep the usage well below 20% and I pay it in full before the due date. For another FHA mortgage am I on the right track so that when my waiting period is up I can possibly get approved?

    • Scott Schang says:

      Hi Dana, Yes, you are absolutely on the right track. I know it sounds counter-intuitive, but should have more than one credit card ONLY to “play the game” to increase your credit scores. I’m happy to have a longer conversation with you about this, but it’s one of the biggest reasons I see for low credit scores, and something that I experienced personally.

      As far as qualifying for an FHA loan, there is a 2 year wait following the discharge of the bankruptcy. That’s it. No additional penalties or costs or higher interest rates. Just a 2 year waiting period after the BK, regardless of whether or not your current mortgage was discharged or not. The only thing that would change this waiting period is if you default on the current mortgage.

      If you find yourself in a position where you have to move before September 2019, with a 20% down payment, you could potentially qualify for a portfolio loan to buy the home, and refinance into a FHA loan as soon as you’re eligible.

      Either way, you’ll be fine. And when you’re ready, I can introduce you to a professional loan officer that has an expertise in these types of scenarios. Inexperienced loan officers, and most banks and credit unions do not understand these guidelines and tend to give misleading information about these options.

      If you have further questions, or want to chat about building your credit back up, you can email me directly at scott@findmywayhome.com

      Hope this helps?

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