How hard is it to buy a house after filing for chapter seven
bankruptcy? How long will it take to get a house? What are some of
the things I need to do before even going to try to buy a house?
First let me say that bankruptcy is certainly not the end of your
credit life. I know many people that have filed bankruptcy and went
on to rebuild their credit very quickly--and buy a house!
Bankruptcy will show up on your credit report for 10 years. That
means that every mortgage lender will certainly see that fact when
evaluating your mortgage application.
Although it may be difficult to find a bank to give you a mortgage
it's certainly not impossible. Banks want to make money and you may
find one that's willing to take the risk. You can increase your
chances by coming into the deal with as much cash as possible. The
more money you can use as a down payment, the less risk for the
bank. There is a level where they'll lend you the money because the
loan is secured by the house and the house is worth more than the
In summary, cash will solve this problem, for sure. However long it
takes to gather that cash is how long it will take to get the house.
I would shoot for at least 20% down.
I'm guessing that you don't have that kind of money or you wouldn't
have filed for Chapter 7 in the first place but now that you have a
clean slate it's time to start building your wealth, saving, and
getting ready for that house.
Start thinking about how you can make money in your spare time,
selling on line at eBay, doing freelance work, or starting your own
Good luck and please let me know what happens.