topic Re: Will I still have to wait till 2 year mark of discharge? in Mortgage Loans

Will I still have to wait till 2 year mark of discharge?

Anonymous — Thu, 04 Nov 2021 13:52:43 GMT

Looking for a conventional mortgage soon, however it has been only 20 months since discharge of Chapter 13. I know the rule is you won't qualify for a conventional mortgage until 2 years after discharge, but Ch 13 has been dropped from all reports as well as all accounts that had remarks related to ch 13. Planning on waiting till the start of the year to apply which would put me at more than 7 years since filing, and at 22 months since discharge. Could I apply for a conventional loan, or how could lenders or underwriters know when discharge date is if no bankruptcy trace is on reports?

Re: Will I still have to wait till 2 year mark of discharge?

Mortgage-Specialist — Thu, 04 Nov 2021 16:48:13 GMT

It appears you need 24 months in before you have a chance of approval to go Conventional

Re: Will I still have to wait till 2 year mark of discharge?

Anonymous — Thu, 04 Nov 2021 17:04:25 GMT

I know this, however my question is since the ch 13 fell off early and there is no trace of it on my reports. Is there a way for lenders to know that the 2 years are up or if there ever was a ch 13 at all? How can they see something thats not on the credit reports?

Re: Will I still have to wait till 2 year mark of discharge?

Mortgage-Specialist — Thu, 04 Nov 2021 17:53:27 GMT

There are many internal sources such as LexisNexis that lenders utilize that will show them your BK

Re: Will I still have to wait till 2 year mark of discharge?

VALoanMaster — Thu, 04 Nov 2021 19:04:41 GMT

@Anonymous wrote:
I know this, however my question is since the ch 13 fell off early and there is no trace of it on my reports. Is there a way for lenders to know that the 2 years are up or if there ever was a ch 13 at all? How can they see something that's not on the credit reports?

The mortgage application specifically asks if you've declared BK in the last 7 years.

Trying to hide your BK from a lender is mortgage fraud.

Just wait until you hit the 2 year mark.

Re: Will I still have to wait till 2 year mark of discharge?

Anonymous — Thu, 04 Nov 2021 19:20:16 GMT

It would have been filed over 7 years already. Not trying to hide that at all or lie on application since if the question is if I have filed in the last 7 years the answer would be no. It just seemed strange to have to wait till 2 years from discharge and not 7 from filing date. In my case it is literally 2 months difference. Thank you for the advice.

Re: Will I still have to wait till 2 year mark of discharge?

VALoanMaster — Thu, 04 Nov 2021 19:22:24 GMT

@Anonymous wrote:
It would have been filed over 7 years already. Not trying to hide that at all or lie on application since if the question is if I have filed in the last 7 years the answer would be no. It just seemed strange to have to wait till 2 years from discharge and not 7 from filing date. In my case it is literally 2 months difference. Thank you for the advice.

Underwriting guidelines go by the discharge date, not the file date.