Our firm, Blutter&Blutter, is an active Nassau, Suffolk, Queens Bankruptcy and Foreclosure firm. We have found that one of the most popular questions is: When can we purchase a home after bankruptcy filing or after our home has been foreclosed. In 2011 this is all too familiar event. It could happen because of job loss, illness, or high mortgage payments that were not foreseen. In any event, we are constantly asked to help eliminate debt, provide foreclosure defense or participate in representation in a short sale. But the question remains, when can a person or couple repurchase a home.
Here are the answers with various types of reports on your credit report:
1. In a short sale, where the home is sold for less than is owed on the mortgage, the time to purchase another home may be nine months or one year from the date of the sale. It should be noted that certain income may have to be reported on your tax return for the amount of debt forgiven.
2. In a foreclosure sale, where the bank through court administration retakes ownership of your home, it could take three years of more before the previous homeowner who has had the foreclosure can qualify to purchase a new home.
3. In a bankruptcy, one can give up their home and discharge unsecured debt. According to Fannie Mae and Freddie Mac (not people but federal mortgage providers) the wait to purchase a new home is two years. There are no tax implications in a bankruptcy.
4. A deed in lieu of foreclosure exists where a party writes up a deed to their home to the mortgage company in lieu (instead of the bank foreclosing). The wait to purchase a new home is 2 years.
Thus the mortgage forest is large and confusing. For further explanation of the above, contact Blutter&Blutter, Esqs., at 516-336-8060 , 718- 529-7777, or 800-864-9943. We have offices in Plainview, Garden City, Melville, Hauppauge, and Queens.