FHA: Including my mortgage in a Chapter 7 bankruptcy

FHA: Including My House In My Chapter 7 Bankruptcy


You filed a Chapter 7 Bankruptcy and included a mortgage/ or property in Arizona and you want to know when you can qualify for an FHA Home Loan in Arizona.. Am I correct?

You may have even been told by a FHA mortgage loan lender in Arizona that after 2 years from the Chapter 7 Bankruptcy Discharge date you can qualify for an FHA Home Loan . Does that sound familiar? For the most part this information, technically, is true.
Like many others who have not been informed of the correct information, you now are being told that you do not qualify (After waiting for 2 years) and are left scratching your head as to what happened. The fact that you have included a mortgage/ or home home in your Chapter 7 Bankruptcy changes the well-known 2 year bankruptcy rule to the more conservative FHA 3 year foreclosure rule.

The fact that there was an FHA mortgage and/or property included in the Chapter 7 will revert you to FHA's 3 year foreclosure rule which is obviously the more conservative approach. Lenders will almost always take the most extreme situation and apply the guidelines from that point. The foreclosure simply is considered more serious than the Chapter 7 bankruptcy.

Click here to learn more about Chapter 7 Bankruptcy including a mortgage.
For more information, call Ted Canto at Academy Mortgage in Arizona today and I will guide you and provide with sound advice on how to qualify for an FHA home loan after your Chapter 7 Bankruptcy
Comment balloon 5 commentsTed Canto • March 22 2011 11:51PM


Great information! Thank you for posting!!

Posted by Cheryl Brewer, Selling Homes since 1997 (Mike Bowman) almost 10 years ago

Yes, I get it, but could you just elaborate a little more. Explain it a little clearer, and it might do you well to post it to Localism...get the info out there.  If you don't know how, ask me.  Or just join the Localism group, b/c they are the ones who would benefit from your blog.


Posted by Karen Monsour, REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert! (Coldwell Banker Fort Lauderdale Beach) almost 10 years ago


I guess it is because it is not just bankruptcy, but after they surrender the title, it still goes through foreclosure, and that;s where the rule is changing. Am I correct?

Posted by Jon Zolsky, Daytona Beach, FL, Buy Daytona condos for heavenly good prices (Daytona Condo Realty, 386-405-4408) almost 10 years ago

@Cheryl - You're welcome!

@Karen - I fixed it. Should be a lot better.  To get more information, just click on the link as well.  It is on Localism, etc, etc..

@Jon - You are correct; however this is not changing but has been the stance for quite some time.  That been said, it is becoming a common theme as many people have had to file for BK and will soon be entering these types of scenarios and questions.

Posted by Ted Canto, Arizonan #1 Mortgage Lender (American Mortgage Network) almost 10 years ago

What happens if someone short sales a home and the bank does not approve the SS. Then the property went to Foco. How soon before they can buy a home then?

Posted by Jayson Hoffer, Mesa AZ 480-948-6115 Home, Auto, Life Insurance (Jayson Hoffer Insurance Agency Inc.) almost 10 years ago

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