Realtors often get questioned by potential home buyers (who have the blemish of bankruptcy on their credit) and even home owners (who need to know their options going forward) what the future odds are of securing a mortgage loan if they fall out of credit favor. The how to proceed caveat is…it depends.
First of all, the underwriting component of the mortgage business is an ever-moving target (or to be more diplomatic, a sometime Empire of Evil).
Therefore, what is applicable today may not be tomorrow. However….as of this writing a past “bankruptor” can be considered for a mortgage loan 2 – 4 years from the date of discharge.
While this may be the magic number, the magic activity is to establish new credit as quickly as possible after that same date of discharge and maintain it in good standing for at least a year. The reason is simple; the previously challenged in personal finance need to demonstrate that they know how to manage their credit.
The new debt they should seek is a diversified portfolio of trade lines: be they revolving, installment, etc.: like an installment loan or a car loan. They are going to be penalized by their history, have to endure a higher interest rate, and may even have to pony up a down payment; but it’s the way out.
At the end of the day, you need to get yourself back on the books and into the light; otherwise you may as well spend your time looking to the east to see the sunset.