Although Chapter 7 bankruptcy gets rid of your personal liability on your mortgage, the lender can still foreclose if you stop paying. Filing for Chapter 7 bankruptcy will wipe out your mortgage loan, but you’ll have to give up the home. … So, if you want to keep the house, you must continue paying your mortgage payment.
Similarly one may ask, can I get a conventional loan after Chapter 7?
To qualify for a conventional loan after Chapter 7 bankruptcy, borrowers need to wait 4 years after the discharge date. There a four waiting period after the Chapter 7 Bankruptcy discharged date. … 3% to 5% down payment is required on conventional loans. The minimum credit score required on conventional loans is 620 FICO.
Beside this, how soon can you apply for a mortgage after being discharged from Chapter 7?
How soon can you refinance after a bankruptcies?
Chapter 7: You must wait at least 2 years after the discharge or dismissal date before you can refinance your loan. The 2-year standard only applies to government-backed loans like FHA loans and VA loans. Most lenders require that you wait 4 years after your discharge date for a conventional loan.
What should I do after Chapter 7 discharge?
THREE STEPS TO REBUILDING YOUR CREDIT AFTER BANKRUPTCY
- Step One: Make arrangements to pay any nondischargeable debts.
- Step Two: Use secured credit cards or small loans to help build a record of on-time payments.
- Step Three: Avoid unnecessary post-bankruptcy debt.
- Buying a new or used car bankruptcy.