Q: How long do you need to wait to get a new mortgage if you have a bankruptcy and a forclosure discharged on your credit?

Mortgage Question of the Day

A:The time frame for recovery after a bankruptcy and or foreclosure is four years as a general rule of thumb.

This time frame can vary based on the circumstances. For example, if your bankruptcy or foreclosure was due to medical reasons then it is possible that you could qualify in as little as 2 years from the time your bankruptcy is discharged or the foreclosure redeemed, which ever occurs last.

If there is no medical reason for the situation and it is due to financial neglect then it is 4 years after the end of the last event, either the home is repurchased or bankruptcy discharged.

One other important point to know is that bank underwriters also want to see 4 years of RE-established credit history so it is important to start working on as soon as possible to help you on the road to recovery.