After a Chapter 7 bankruptcy with property surrender which rule above applies? 2 years for bankruptcy or 3 years after the sale?

Hi Stewart! I'm assuming when you use the word "surrender" that you are referring to the actual foreclosure or possibly a deed in lieu of foreclosure and if so, you would need to use the date that either one of those events were actually recorded in the official public records. So, if the property was foreclosed on in April, but the recording didn't take place until June 15, then you would use the later date for the start of the waiting period to be able to obtain new financing, assuming all else meets lender guidelines at that time in the future. As a rule, when both events (Foreclosure and BK) take place, you will need to use the longer of the time frames, which in this case would be the Foreclosure. There may be Credit Unions in your area that are willing to entertain a loan on their books with circumstances you noted within a short time frame, assuming the credit meets their guidelines and that you have a very solid financial status and are able to make a suitable down payment. That's just another potential option to look into and start planning on. Good Luck!

The date you surrendered the property is not material. If there was a foreclosure then it's 3 years with some lenders and 4 tears with others with re-established on time credit. If a BK then 2 years for an FHA loan with re-established on time credit.

Hi Stewart,It is 3 years from the sale date or when the bank takes back title to the home for FHA & USDA but for VA it's only 2 years from the discharge of the bankruptcy.FHA does allow exceptions to the 3 year wait if you qualify for one of the few "extenuating circumstances" exceptions. The most recent one is the FHA back to work program which basically says if you can prove the BK and foreclosure were the result of a job loss or your income was reduced by 20% or more for at least 6 months you maybe eligible 1 year after the foreclosure.

It will always be "Worst case scenario" so the 3 year rule would apply.. I have heard other loan officers post that you can go by the 2 year post BK rule, but of the 21 lenders that I deal with, not one of them will allow only 2 years (FHA), they all require 3. Also understand that the lender goes by the day the property was taken out of your name.. not the day you moved out. The lender will require a copy of the deed transfer to confirm the actual start date. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

A suggestion: If you can show income drop was a big factor in having to surrender the property you may be eligible for the back to work program. Spend time over the phone with an experienced, competent mortgage consultant in your State to qualify you, if you feel that is the case. Otherwise, you have received some good answers already, and 3 years is the minimum before being eligible to qualify for an FHA mortgage loan.