Mississippi Real Estate Law

[Trevor Montgomery]

I filed for Chapter 13 bankruptcy over two years ago. From everything i researched, i was told after 2 years of filing bankruptcy i could then apply for a mortgage. I recently tried to do so and was told the law was changed in MS that if you file Chapter 13, you must wait at least 2 years post discharge from the bankruptcy.

Can anyone clarify if this is true?

Thank you,

Trevor

[Susan Maneck]

I think this depends on the lender and the program through which you are applying, not state law. For FHA and VA loans you will need bankruptcy court approval if you are Chapter 13 since you still have outstanding debts. For Fannie Mae or Freddie Mac the waiting period is 2 years from discharge and 4 years from dismissal, or 2 years from dismissal with extenuating circumstances. If you have more than one filing within the past 7 years, the waiting period is 5 years from the most recent discharge or 3 years with extenuating circumstances. Individual banks have the option to keep the loan in-house in which case the qualifications are whatever the bank sets.