How long after bankruptcy do I have to wait before buying a home?
Anyone who either filed for bankruptcy or is considering it has asked “how long before I can buy a new home”? Attached is a spreadsheet which purports to detail the answer to this question. But, beware – each of the lenders can and do change their minds every few months. Also, there is nothing written in stone that says a lender must follow these guidelines. They are only suggestions.
The more important question should be “is bankruptcy a good way to get a fresh start for myself and my family?”
It is very important to focus on what you and your family need today, with a plan for the short term future, such as paying off the car.
Buying a home will come later. Many of my clients report that they were able to purchase a new home within two years after filing the bankruptcy, but this really depended on their post-bankruptcy payment history. It also depends on whether they have the financial ability to pay for a home (which costs far more than the monthly payment). Too often I see my clients fail in their goal to buy a home because they fall back into the trap of living off credit cards (sometimes that is a very hard habit to break).
MUSINGS BY DIANE:
I offer each of my clients a book and articles on how to rebuild their credit, with the hopes that some of the ideas will be helpful. I also warn them about buying into any fast and easy “credit repair”. THEY ARE ALL SCAMS!! Don’t throw away your hard earned money and hopes for a better future on these frauds.