Texas residents and others who file for bankruptcy may believe that they have no chance of buying a home. However, this is not necessarily the case. For many, the biggest obstacle standing in their way of home ownership is time. In some cases, a person may need to wait four years after the date that their case is resolved before they can buy a home. A minimum two-year wait is imposed by Fannie Mae while a minimum one-year wait is imposed by the FHA.
The length of time a person must wait may depend on the type of loan and bankruptcy being sought. Typically, lenders look favorably on those who filed for Chapter 13 bankruptcy as opposed to Chapter 7 bankruptcy. This is because those who have filed for Chapter 13 are making an effort to repay their debts.
Regardless of why a person filed for bankruptcy, the goal is to avoid late payments after a case is resolved. As a general rule, a bankruptcy has less of an impact on a person's credit situation the further removed he or she is from the filing. It generally takes about 12 months of timely payments to sufficiently rebuild a credit score and history to the point where a getting a mortgage is a reasonable endeavor.
Filing for Chapter 13 bankruptcy may make it easier to manage debt now and in the future. Those who are thinking about filing may wish to talk with an attorney. Doing so may help them learn more about who may file as well as the benefits of bankruptcy. In many cases, creditors are barred from contacting creditors while a bankruptcy case is ongoing. They may also be barred from engaging in other collection activities.